When To
Buy And Sell
One of the benefits of investing in the stock market is that you can do it after
trading hours. Bursa Malaysia is open from 9am to 12.30pm, then again from 2.30pm to 5pm but you
can do research and place orders outside these hours.
So, let’s say you go to work all day and only have the evenings and weekends
free. In the evenings you will review what happened to the market that day and decide how to trade
the next day. If you miss a few nights during the week, you can do your analysis on the
weekend.
There are two ways to place a buy or sell order:
At Market Orders
You can only make ‘at market’ orders during trading hours. If you do your research after
trading hours then you would put an order through with your broker as soon as the market opens the
next day. The purchase will then be made ‘At Market’ price, which may be different from the price
you found during your research the night before.
At Limit Orders
The advantage of ‘At Limit’ orders is that you set the maximum price you will buy or the
minimum price you will sell the share for. So, if you have done your research that evening and
decided that the most you want to pay for the share is RM 1.20 then you place an ‘At Limit’ order
for 100 shares at RM1.20. If your broker can get the shares for RM1.20 they will buy them for you.
If not, they won’t make the trade.
This practice is quite good if you want to control the amount you are investing.
The other advantage of buying ‘At Limit’ is that you can place a buy/sell order outside market
hours. Therefore, your share trading business needs do not interfere with your daytime job.
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