Be sincere when teaching about the stock market

By Zaidi Isham Ismail
editor@dagangnews.com

Of late, seminars by remisiers to teach the rakyat on how to invest in the stock market have been mushrooming. So called Bursa Malaysia and Nasdaq experts began organising classes for anybody interested on how to make money on the local bourse.

Some of the speakers are familiar names attracting participants with catchy taglines while some are unknowns claiming they have years of experience delving shares on Bursa Malaysia.

Nothing wrong with all these educational activities but in reality, how many of these so called educators are sincere in imparting their knowledge to the rakyat?

For starters, the fees that they charge are extremely exorbitant. A fee of RM500 is okay and affordable but some charge as high as RM5,000 or more for a three-day course.

Nothing wrong if this money is also used by the organiser to invest on behalf of the participant. But to charge that amount of money to a stock market newbie on what Bursa Malaysia is all about - that is daylight robbery.

As a business writer for the past 20 years, I can assure everybody out there that it does not cost RM5,000 above to learn on how to play the stock market.
 

These so called stock market experts should not take advantage on the newbies who know nothing about how the market works by feeding irrelevant and unnecessary information.

For starters, just teach the future punters historical share price, market volume, how to spot a good company, when to buy and when to sell. Also teach them news which affect share prices and how to trade on the phone and the laptop.

There are hundreds of technical jargons involved in the stock market but the future trader need not be swamped with all the market information in one go.

Just advise the interested participant to open a CDS (central depository system) account at any investment bank or brokerage house and he or she is ready to trade and make money.

Subsequently, as these newbies begin to take make money, their confidence and elation will grow and only then can the remisier organise any follow up seminars.

A reminder to these so called share market teachers. Under the laws of the Securities Commission, if unlicensed, they are not allowed to share stock tips on which company shares to avoid or which stocks to buy.

It is against the law for unlicensed remisiers to suggest or promote a stock to the rakyat at open seminars.

Quite often I come across young men and women with big dreams  to make it big by playing shares. But despite paying thousands of ringgit to learn about the share market, they haven't even opened a CDS account to begin with let alone start investing.

Not cool man.

So to all the cikgu-cikgu saham out there.  Be sincere, ernest and accountable. Teach the young people on the intricacies of the stock market from the goodness your heart.

Do not fleece their money and teach them things they need not to know so early on such as EBITDA, ICULS, private placement and the likes.

All these corporate terms which are invented by accountants can be dissected later as young investors start their journey to become stock market traders.

Be earnest and be sincere before teaching others on the joys and the trappings of the share market.

There are times when these so called experts share stock tips with their disciples. A seasoned trader would know that these tips are already too late as the share prices of these firms have already climbed. Tips should be given before the stock climbs. Not after.

Teach and impart your knowledge sincerely. Don't fleece the rakyat.

After the stock market seminars, I always ask the participants : which company shares did you buy?

Imagine my surprise when they said they still haven't traded as they still don't understand what the stock market is all about.

To all the stock market teachers, don't you have a guilty conscience?    - DagangNews.com

The writer is former NST Business assistant editor