This is one of the most common predicaments that investors have to contend with all the time where you are not sure what to do when managing your investments.
The advent of technology has allowed investors to self-manage your own investments where you can trade through the internet or you could still practice the conventional practice of allowing your broker handle everything for you.
So which one is a better option?
Basically, when you opt for the self-managed method, you are fundamentally taking care of your own investments and making your own decisions on what to buy and sell and when.
You do not have a broker who does it for you and the role of the broker is basically to maintain your trading account for you which is required under Bursa Malaysia.
Using a software which is usually provided by the brokerage firm, you will be clocking in your orders yourself which means that you will be solely responsible for any profits or losses.
The self-managed method will be ideal for you if you are a person who likes to make your own decisions when it comes to managing your money. But it will be the best choice for investors who have been in this field for some time.
No matter how well equipped you think you are, if you are a beginner trader, the best option is to allow the brokers to help you who can at least advise you on when is a good time to clock in an order.
The brokers after all have been in this field for many years and their expert opinions would be of use to you. On top of that, they can also help you to monitor your stocks because they basically watch the market throughout the trading day.
On the other hand, if you are someone who is unsure and cannot make quick decisions, then it is best that you leave it to the professionals and experts where in this case, the brokers.
This is where you need to find a reliable broker who is on standby to take any orders from you when you require. The only downside about allowing the broker to handle your investments is that they might not be there all the time to pick up you call or when the market is really busy, they might have too much to do.
When you engage a broker, your job is made all the more easier where you will allow them to buy or sell on your behalf through your account. As mentioned, the most important factor that you must consider when engaging a broker is that you only do so if you are new to this and is learning the ropes to investing in the stock market.
This is however, not the only reason as there are many seasoned investors who still rely on their brokers as they have been working together for years and have built a strong trust relationship with them who might have helped them enjoy profits in the past.