THE NATION June 13, 2013 1:00 am
The concept of investing in stocks is still foreign to most Thais, with fewer than 300,000 active accounts trading in the entire market. However, more and more Thais have taken an interest in becoming an online investor. Two years ago, Internet accounts represented 49 per cent of all trading accounts.Convenience and cost are the main drivers of this trend. Online, investors can trade any time, anywhere with a connected device - laptop, smart phone or tablet. The interfaces of these applications are designed to be very user-friendly and accommodate various types of commands.
Online trading also allows investors to enjoy lower commissions - 0.15 per cent instead of 0.25 per cent. No more calling your broker every time you want to submit or change an order, saving you time and expense.
Want to start investing online? While stock investment certainly carries more risk than savings accounts do, there is a set of proven steps you can take to become an astute online investor.
Step 1: Know where to find information and study it. There are plenty of resources out there to view current and historical stock data. While reading, you will encounter various financial metrics and jargon. Spare some effort to understand the terminology and you will have that much more confidence in investing. Our hint is to start with www.set.or.th/onlineinvestor.
Step 2: Create your stock wish list. This is the list of your favourite stocks based on the fundamental analysis you performed in Step 1. In forming this list, it would be wise to compare your picks with the top picks from experts to fine-tune your selection.
Step 3: Prepare entrance and exit strategies. After knowing which stocks you want to invest in, figure out their buy prices. In this third step, technical analysis becomes handy. A basic understanding of market prices and volume will help you recognise chart movement patterns and design your enter and exit strategies.
Step 4: Practise trading. Before your first trade, try executing orders in a simulated environment. You should familiarise yourself with the screens and menus in the trading applications. This will save you from inputting erroneous orders, which could cost you money, a common rookie mistake.
Step 5: Open an account. Once you are ready, sign up for an account. Not all securities firms offer the same services and expertise, so you should talk to representatives and select the right fit for you. The process of opening an account usually takes just a few days.
Sounds complicated and cumbersome? It really is not.
The SET will host "Online Investor Fair 2013" to educate and assist the general public interested in investing. This year, the event will be held from June 27-30 on the first-floor Eden Zone at CentralWorld in Bangkok. This event serves as a one-stop service for you to perform all the five steps above - and much more.
Throughout the four days, representatives and gurus will hold workshops, teach techniques, hand out materials and even simulate a market for you to practise trading. Certified professionals from 24 leading brokerages will be present to take your questions and guide you through your investment journey.
Miss this event and you'll have to wait for another year. Miss this bull market and you may regret it for a decade. Hesitate no more and catch the trend.
The Stock Exchange of Thailand contributed this article.
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