Why trade in Malaysian markets?

There are many reasons why as a beginner, you should start your trading on home ground, the Malaysian markets. Here are the four main reasons:

1. No currency risk

You will be using the home currency, which is Ringgit Malaysia in the Malaysian markets. This will eliminate currency risk and your exposure to the volatility of foreign exchange rate.

2. Home ground advantage

As you are trading in Malaysia which is your own country, you have the home ground advantage as compared to foreign investors. You will have better understanding of the domestic political and economic environment and its impact to the markets. For example, when the government announces the MRT project, you would know what companies are likely to be the beneficiaries and the impact to the stock price.

3. Easy access to information

You will have easy access to news and updates in the local market as the market developments are widely reported in the newspaper dailies, financial periodicals and various websites. Apart from that, you will be able to attend Annual General Meetings for the stocks that you own and meet up with company management on these events.

4. Convenient trading hours

As you are trading in Malaysia, the trading hours will be during the day time. Therefore, you do not need to sacrifice your sleep at night to monitor the markets. For example, if you are trading in the US markets, you may need to stay up late into night to monitor and trade the markets.


Excerpt from Jumpstart In Stocks and Futures Trading by Choong Ty'ng Ty'ng