With the availability of online trading, you can now trade shares even after the usual trading hours. The Bursa Malaysia market is open for trading from 9am to 12.30pm where it takes a break and then re-opens at 2.30pm to 5pm. This does not limit your trading activities to the few hours in the working day which means that it can be done by those who are working during office hourse.
Orders for stocks can be placed outside the trading hours and it is ideal especially for those who aer working all day and only have the evenings and weekends to trade shares. This is also an effective way of trading as you will be able to review what transpired during the day and strategize for tomorrow or the next few days. Furthermore, it is also a common practice for traders to analyse the weekly performance of the stocks they are interested in and then place their orders accordingly.
To buy or sell shares you can do so at ‘Market Orders’ which is the most common practice. ‘At market’ orders could only be placed during the trading hours as mentioned earlier. This is where you will need to place your orders with the brokers as soon as the market opens. When you do this, you will find that the price might differ from that you have researched the day or days before.
Limit Orders are where you set a bar price for a specific share. This is where you will set either a minimum price to sell or a maximum price to buy the share in. Limit Orders are the most effective ways for traders who do their research the day or weekend before the market opens and then inform the brokers of your decision. For instance, if your research tells you to buy a certain share at RM2.00, you will place your ‘At Limit’ order for the price. The broker will then buy your share at RM2.00, if the share does not hit that price, no transaction will be made. The plus side about ‘At Limit’ orders is that you can control your investments better and it gives you more peace of mind knowing that your money are invested into the right shares at the right price.