Disclaimer : The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of the article does not constitute advice or a recommendation by the author and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this article. The author can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made nor do opinions of contributors necessarily reflect those of the author
Please always remember, stock market has nothing to do with fortune telling
WHICH PLATFORM IS THE BEST TO INVEST?
It’s been a while since I last talked about the stock market, but I’m still in the game, just as an investor, not an expert. I usually rely on my humble decades of experience to guide my decisions. So, here we go.
Whenever I'm asked the question, which platform should a person invest? Actually, I have no preference as there are many platforms that you can invest - it all depends on your goals, risk appetite, and time horizon. Common platforms include:
Stock Market (e.g. Bursa Malaysia, NYSE, NASDAQ): Suitable for medium- to long-term investment and active trading.
Unit Trusts/Mutual Funds: Good for passive investors,
ETFs (Exchange-Traded Funds): Offers diversification with lower risk,
Robo-Advisors: Automated, algorithm-driven platforms (e.g. StashAway, Wahed Invest),
REITs (Real Estate Investment Trusts): Good for income-focused investors,
Cryptocurrencies (e.g. Bitcoin, Ethereum): Very high risk, suitable only if you understand the volatility.
Real Estate: Tangible asset, but requires large capital and longer holding period.
For this explanation, I'll focus on the stock market.
2. TECHNICAL ANALYSIS
(example) Let’s take Maybank stock listed on Bursa Malaysia.
(Note : Please read the above disclaimer before proceeding)
You want to know whether to buy, hold, or sell.
Tool Used: Moving Average Crossover
- Short-term MA (e.g. 20-day Moving Average)
- Long-term MA (e.g. 50-day Moving Average)
Scenario :
If the 20-day MA crosses above the 50-day MA ➜ Golden Cross ➜ Buy signal
If it crosses below ➜ Death Cross ➜ Sell signal
Result: On 15 March 2025, you observe that the 20-day MA of Maybank crosses above its 50-day MA. The trading volume also spikes. This may suggest a bullish trend and a potential buy signal.
But, you need to confirm this with other tools like:
RSI (Relative Strength Index) : to check if it's overbought or oversold.
MACD (Moving Average Convergence Divergence) : to confirm trend strength.
Support/Resistance levels : for better entry/exit.
Here's a more thorough analysis :
Current Stock Information
Last Traded Price: RM10.42
Day's Range: RM10.16 - RM10.40
52-Week Range: RM9.52 - RM11.04
Market Capitalization: RM122.84 billion
PE Ratio: 12.18
Dividend Yield: 5.89%
Data as of March 20, 2025.
Technical Indicators:
Moving Averages:
- MACD (Moving Average Convergence Divergence):
- RSI (Relative Strength Index):
- Support and Resistance Levels:
- Support: RM10.34
- Resistance: RM10.50
These levels are based on recent trading activity and volume.
Recent Performance:
Maybank's share price reached a record high of RM8.93 on September 18, 2024, before experiencing some profit-taking.
Analyst Outlook:
As of February 27, 2025, Maybank was downgraded to a 'Hold' with a target price raised to RM11.42.
Conclusion
The technical indicators suggest that Maybank's stock is in a consolidation phase, with key support around RM10.34 and resistance near RM10.50. The MACD indicates bullish momentum, while the RSI suggests the stock is approaching oversold conditions. Investors should monitor these levels and indicators closely, considering both technical signals and fundamental factors before making investment decisions.
3. WHY DATA IS SOOOO IMPORTANT?
Accurate data is the backbone of any investment decision. Here’s why:
- Historical Price and Volume Data: Needed for technical analysis,
- Financial Reports: Show the company’s performance, debt level, profit margins, cash flow, etc,
- Economic Indicators: Inflation rate, interest rates, GDP growth influence market behavior,
- Sentiment & News: Public perception and events (e.g., CEO changes, legal issues) affect price.
Without reliable data, you’re investing blindly - it’s like driving in the fog without headlights. (I had few unpleasant experience on this one)
4. TRANSPARENCY BY LISTED COMPANIES
Transparency builds trust and allows investors to make informed decisions.
Besides publishing prospectuses and undergoing audits, companies must:
a. Disclose Material Information
- Major contracts won/lost
- Changes in top management
- Corporate exercises (e.g. bonus issues, share splits)
- Legal disputes
- Mergers and acquisitions
b. Provide Forward Guidance
- Future outlook or business direction
- Expansion plans
c. Consistent Investor Relations (IR) :
- Quarterly briefings
- Press releases
- Investor presentations
Finally...Does this all matter? The answer is a big "YES"
- It will reduces risk of Insider Trading
- It helps maintain fair valuation
- It gives investors confidence
A company that hides bad news or delays reporting is a red flag - transparency reduces uncertainty and helps maintain stock stability.
