Research is your eyes and ears before you trade

Research is your eyes and ears before you trade

In an earlier survey conducted among our customers, more than two-thirds agreed that they find stock market research reports relevant to their daily trading activities.

What about you? Do you consider its importance and the bearing it has on your trade/investment decisions?

Let’s take a look.

If you had a couple of thousand ringgit, would you give it away to a child who has no appreciation of the concept of money? Or would you spend time to guide the child to ensure that the money is not wastefully spent?

Naturally, you would want to ensure that the money is properly and wisely used. In the same way, you would invest your hard-earned money wisely; you would ensure that the money goes a long way in terms of wise investment rather than simply throwing it away.

Hence, the importance of stock market research.

What role does stock market research play in your investment choices? You may not be aware of it but “investing in stocks without proper research is akin to throwing away your money.” Smart investors know the importance of research and will take advantage of all research tools before making decisions.

As a retail trader and most probably a layman who may not be well versed in financial statements and the like, who should you look to for reliable research; what can research tell you about a specific company; what is the company’s past history; who can you speak to in the management of a company that you are keen to invest in?

Stock market research analysts look at financial statements and pore over reports which may be filled with jargon that is beyond the layman reader who may not even have the time to digest all the information. An expert is needed to interpret all that and make some sense out of it. Furthermore, the analyst has all the resources at hand, i.e. contacts in the market, contacts in the company management team which will equip the analyst to produce a comprehensive report covering all angles that include management direction and strategy, and not just the financial analysis.

Ever so often, we find mailers in our mail box suggesting and promoting all kinds of products. In the same way, RHB customers receive daily research insights into the stock market with stock recommendations and detailed analyses. The suggested stock picks are the result of the analyst team spending time reviewing financial reports and interviewing the management of specific companies before giving their recommendations. With these insights, RHB customers are able to have ideas on which stocks to trade.

As the research work is already done for them, customers only need to confirm and make their own trade decisions.


Sources: accessed 16 June 2016 accessed 16 June 2016 accessed 16 June 2016