Thursday, 4 September 2014

How do you determine which counter is the best for investment in KLSE?

I believe many of you have been investing in some forms or another already. Investing in the stock market seems pretty common as you are able to do so easily through the investment banking accounts. If I am not mistaken, these accounts can be setup for you within 3 working days and then you are good to go and make your call on which counter to invest. The big question is which one to invest?

You can download apps from the Play Store or Apple Store which will be capable of showing you how the market has been performing for the day. I have downloaded the KLSE Screener and I would have to say that the app is pretty good! You get to check out the World Index to see how the other major countries are performing.




Many a times I have seen people looking at the Top Volumes for the day. Does that mean those are the best counters for investment? Maybe yes and maybe no! Basically these counters have the highest transaction for the day and it can be either good or bad.



Top Gainers and Top Losers might tell you a story but you will definitely need to read up more on the news for the various reasons why the counter reacted that way. At times, the investors might choose to sell in huge bulks and at times they buy in big bulks too. The question is about WHY and WHY and WHY




When you have selected the specific counter, you can view the graph to check on the performance. I was once advised by an investment guru that you should look at the graph since the first day that company has been listed. If you see a line graph going up through time, it would mean that the company is performing through time. This is true to a certain extend and it would be tough to find a counter that is able to meet these requirements.

I've included the screenshots of counters like MAS, AIRASIA and SPSETIA. Please note that these counters were selected randomly and no prejudice against any of them. I believe these counters are pretty good themselves as each counter has room to grow. It's the time factor that will tell how well these companies can perform.






 All forms of investment are good as it helps you to generate more income. For share market investment, you will need to have the ability to allow your funds to grow through time. It's not an instant rewarding investment unless the counter you invested grew overnight. Normally it will take a couple of weeks to months for a fair share of returns. Invest wisely by doing your own research and all the best!