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The Stock Market

  1. What Is Stock Market?
  2. How The Stock Market Works?
  3. How To Start Trading In Bursa Malaysia
  4. Stock Trading in Islam

What Is The Stock Market?

Detailed explaination about stock market in the 1 minute video above.Credits to WWW.INVESTOPEDIA.COM

In a nutshell,Stock market is:


How The Stock Market Works?

When I first get involved in stock market,i always ask questions below:


What do the weird numbers that appear in stock market means?

How does the price goes up and down? how does it work actually?


In the stock market,it works just like any other market.You need a buyer and a seller in order to complete a transaction.Price goes up as people buy for higher price and price goes down as people sells at a much cheaper price
Lets say if someone were to buy a share of Nestle at price RM70.00 and he queues for it but if no one is selling at him,then he will never get the share.
Let me demonstrate you an example of what happens when someone buys or sell shares and how it affect the price.

Above there is an example and from here,i'll show you how the numbers change when someone buys or sell the share. According to the above,here is its status:
PS: 1 Lot = 100shares(Bursa Malaysia) Ok so now,observe the picture below.CURRENT PRICE:RM72.26

Now,im going to buy 2 lots for RM78.00. Now look at the picture below what happens to the "Sell Queue"/"Sell Vol".
CURRENT PRICE:RM78.00 because the last transaction was mine which i bought at RM78.00
As you can see there,the "Sell Volume" reduces by 2 lots because i just bought the 2 lots.
Also,You can see that the volume increases to 117 from 115 because i transacted(bought) 2 lots.

Ok so lets say i need money fast but i can't sell at RM78.00 because i dont want to wait.So i sell my 2 lots at RM77.26 because there are already people waiting to buy at that price.
So look at the pic below what happens to the "Buy Vol" when I sell my 2 lots at RM77.26 and this will make the price drop to RM77.26 because im selling it at a lower price.

Now you can see that the "Volume" increase to 119 from 117 and the "Buy Vol" reduces to 3 from 5 because i just sold 2 lots.
Currently,Nestle is now priced at RM77.26 because i sold at that price causing it to drop from RM78.00.
Just imagine how the market goes up and down when there are thousands of player buying and selling at the same time!
So now,Let me show you what happens if i buy 10 lots at RM78.00 because right now,there are only 3 lots available at RM78.00 shown in picture above.
CURRENT PRICE:RM77.26
Now See the changes at the "Buy Vol" and ignore the "Sell Vol" for now.
CURRENT PRICE:RM78.00
Aha! Now you can see 2 major changes!.
As a result,I only get to buy 3 lots at the moment but my order for the other 7 lots is waiting at the "Buy Vol".So the same concept will apply when it comes to selling.Understood people? hehe

How To Start Trading In Bursa Malaysia

How To Open A CDS Account In Bursa Malaysia
Mendaftar Akaun Saham

Stock Trading in Islam

Main Saham Dalam Islam
Hukum Main Saham

Nestle is a Shariah Stock with the [S] logo beside its name which labels it as Patuh Syariah.