Well, here are the facts. First, you are instantly an investor the moment you put money (even as little as RM10) into a particular activity or venture with the intention of making more money. Second, ordinary people like you or me, can stand to make a tidy sum when you adopt a sensible attitude and a smart approach to investing.

According to the Securities Industry Development Centre (SIDC), the training and education arm of the Securities Commission of Malaysia, intelligent investing is about “making a conscious decision to commit a predetermined amount of money to a carefully considered investment product or activity”.

Intelligent investing also entails “personally monitoring the performance of one’s investment in order to protect it with the realistic hope of deriving the desired return over a period of time”.

Without doubt, the fundamentals of investing are important and definitely worth keeping in mind as we glean invaluable lessons from the real-life investment experiences of seven people.

1. Be vigilant with your money

“In my life, I was played out by a business partner, a multi-level marketing company whose accounts were frozen, and even an insurance company. My mistake was that I trusted others too much with my money. Now, I live only on my monthly pension.” – Aminah, 61, retired teacher.

2. Do your homework

“I’ve lost money on stocks that I inherited. This experience taught me that every investor needs to educate himself. He can do this by reading, conducting his own fact finding exercises, talking to investment experts or attending investment courses.” – Hasrul, 30, manager.

3. Refrain from investing on borrowed money

“I had borrowed money to take up an employee share option scheme. So, when the market crashed in 1997, I got into serious financial trouble. It was a very bad time for me. I came close to committing suicide. If you want to borrow to invest, be sure you can pay your debt if your investment fails.” – Jass, 32, senior consultant.

4. Start small

“My first investment was at 12 years old when my parents opened a unit trust fund account for me. On my own, I have made my first investment recently in small amounts in a balanced fund which yields a modest return. I have not yet begun to invest in shares because I still have a lot to learn.” – Dasrul, 26, consultant.

5. Don’t be hasty

“Fresh out of university, I eagerly joined in the 1993 bull run to make some fast money. I was able to make a string of profits, which encouraged me to increase my investments. When the share market crashed in 1997, I suffered huge losses. It has taken me some time to consider investing in the share market again. This time, I will concentrate on companies that I understand.” – Douglas, 35, CEO of a property company.

6. Learn from mistakes

“I invest in stocks, unit trust funds and properties. Like everybody else, I have experienced some losses but I accept that they are part and parcel of investing. It is better to learn from mistakes than to feel sorry.” – Sue Lynn, 48, lecturer.

7. Stay on top of things

“Most of my investments are in the share market. I make it a point to be on top of things and track how my shares are doing. If they don’t perform as well as expected, I will decide on whether to continue holding the shares or just cut my losses after assessing the potential of the company. I am very decisive. After all, it’s my money that we’re talking about.” – Rachael, 32, company director.

As you can see from the accounts above, individuals who suffer the most severe losses are invariably those who take their investments for granted. On the other hand, those who carefully minimise their risks, learn from mistakes and monitor their money closely are able to continue investing productively.

Undoubtedly, any Malaysian – regardless of age, education, profession or income level – can become an intelligent investor by making the right effort. You, too, can be one of them. To learn more about how to become a smart investor, make sure that you don’t miss our next article.

This article is brought to you by Securities Industry Development Centre.

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