In this article we take a brief look at what investment options are available when we consider investing in an Alcoa steel company. It should be noted that this overview is in no way intended to serve as an instruction manual, but merely as a brief overview of the main points you should look out for when you are discovering the big world of investing.

First of all, you should understand that investing is a delicate matter. There has never been, can never be, and will never be, a hundred percent guarantee that a particular company whose shares you have purchased is guaranteed to be a financial success in the market, will not go bankrupt, and so on. But we want to highlight the main points that you still need to pay attention to if you are going to invest.

First of all, pay attention to the image of the company you have chosen to invest in in the market today, its turnover, or its popular line of business, the reach of its markets, the quality of its products or services and their relevance. If you look at Alcoa in this aspect, it is certainly one of the leading steel companies in the global market.

ALCOA INC is a US metals corporation that was founded in 1886 and is the third largest producer of aluminium in the world. In addition, Alcoa is engaged in extraction of bauxite and production of a variety of aluminum products. The total capitalization of Alcoa Corporation exceeds $30 billion. Its securities are listed on the NYSE under the ticker AA. In 2015, they fell by almost 30%, primarily due to a decline in global aluminium consumption. Alcoa's high volatility makes it an excellent trading instrument. Price movements can be accurately predicted with technical analysis.

Consider how to invest in Alcoa stock in Malaysia.

You can find out more about the company on the official Alcoa website
You can find out more about the company on the official Alcoa website

How to invest in Alcoa shares in Malaysia?

Alcoa shares are traded on the New-York Stock Exchange (NYSE), where they are listed under ticker AA.In addition to the US exchange, Alcoa shares can be found on several other exchanges: Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV); Frankfurt Stock Exchange (FSE); Berlin Stock Exchange (Berlin Stock Exchange); Stuttgart Stock Exchange (SWB); Swiss, Austrian and London stock exchanges.

To be able to buy shares in the company, you need to find a licensed intermediary, a broker who works with Alcoa stock. Do a search for suitable brokerage companies on the internet. A reliable brokerage firm must first of all be licensed by the relevant regulatory authorities to carry out this type of activity. Next, analyze that broker, read expert reviews about it, see what services it can provide to you and how much commission you will have to pay for its brokerage activities.

When choosing a broker, also find out what deposit options are available, whether funds are accepted in local currency (if that is important to you), what are the minimum deposit and withdrawal amounts.

Once you have chosen a broker, you will have to register with the online trading platform that the brokerage firm offers. Below we will tell you in more detail how to get registered. But first, let's take a look at the investment options.

Select
Select "AA" ticker to find Alcoa shares on the platform

Typically, the most popular investment method these days is the dividend method, whereby you invest a certain amount of money in a company and receive a guaranteed, previously contracted return. The size of this payment is determined by the shareholders' meeting and can be of varying amounts. Sometimes companies even payout up to a third of the net profit to their shareholders. Each company has its own policy on such payments.

You should not expect quick profits with the dividend method of investing. Also, this method is more suitable for those who invest a significant amount in order to preserve the money from possible depreciation and earn a profit in the future.

Alcoa last paid a dividend in 2016.

An excellent alternative to the dividend method is trading in derivatives, known as CFDs. This type of investment does not involve buying shares, you simply bet on possible changes in the value of the stock, and your "forecast" can be made over a long period as well as a day or even a few hours in advance. If you forecast correctly, you can make a profit even if the value of the stock drops.

When trading with derivatives you can use leverage, known as "leverage". The "multiplier" function in the investment platform's dashboard gives you access to the use of leverage without additional approval.

However, while it may seem at first glance that trading with derivatives is easy and straightforward, it is not. Remember that CFDs are complex instruments with a high risk of rapidly losing money through the use of leverage. Statistics show that 59.5% of retail investor accounts suffer losses when trading CFDs. Make sure you understand how CFDs work and are in a position to take high financial risk.

Information on Alcoa's current share price
Information on Alcoa's current share price

How to buy Alcoa shares in Malaysia?

After reviewing the list of brokers available in Malaysia that operate through online platforms, choose one of them and register on their online investment platform.

The programs to be able to invest online are called platforms as they can be used on different gadgets and in different versions, the only requirement is access to the internet. You can use your computer and your phone at the same time. If you started investing on your PC and later downloaded an app from the same platform to your phone, everything will be instantly synchronised and you will be able to view your data and continue operations from your phone. So all the features of the platform will be available to you 24/7 wherever you are with just your mobile phone.

Alcoa share trading platform online
Alcoa share trading platform online

As we mentioned above, registration is easy and takes only a few minutes. All you have to do is fill in your first and last name and your email address in the registration window. After confirming your email address, you will be able to log in and see for yourself how online investing works.

Go through a simple registration process
Go through a simple registration process

After registering you will see the account options you can open. A free demo account will give you the opportunity to try trading on the platform with fictitious (test) funds, without risking your own capital. Dummy funds can be rolled over as many times as you like. Since this money is not your real funds, you will not be able to use it in any other way than to learn on the platform.

Choose a trading account
Choose a trading account

In order to get real money later on, you will have to fund your real account by depositing funds into it. Normally the minimum starting amount is low, only $10. You can upload funds to your account using any of the payment systems available on the platform. You can also use the same systems to withdraw your profit in the future.

Top up your account online
Top up your account online

How to start investing in Alcoa shares in Malaysia? 

So, to start investing in Alcoa shares in Malaysia, you need to take the following steps: 

  • Find a list of brokers online that deal in Alcoa shares on the internet. Pay attention to the image of the brokerage firm in the market, what experience they already have, what reviews they have. Also find out what kind of commission the brokerage firm deducts for the services provided. Examine the online investment platform is it easy to use, is there a demo account for carrying out test operations, how much money is available on the demo account and can it be restored if necessary? Check also if there are technical analysis indicators available on the platform, stop loss features and up-to-date information such as current stock prices, trading charts?
  • Make a personal business plan of exactly what you want to achieve and what your objectives are when you start investing whether it is a desire to earn money as quickly as possible or a desire to protect your capital from possible depreciation now and earn income in the future. This will affect the type of investment you choose, whether it is a short-term or long-term investment. Depending on the type of investment, your strategy will also be different. It is also imperative that you determine the amount you want to start investing. We suggest that you start with small amounts when your experience in trading is still small, or even more so if you are a beginner. Invest an amount that, if lost as a result of an unsuccessful trade, will not cause you financial ruin. We are not aiming for failure, but you should be forewarned and reminded that investing is a risky business, and you need to be cautious and prudent.
  • Keep your finger on the pulse of the news. Remember that you have to learn the laws of the stock market, but there are also a number of factors that affect the price of assets. These include political situation in the country and in the world as a whole, economic news, as well as news that, at first glance, are not related to investing these are man-made disasters, for example. Such events often have an impact on the operations of firms. In which you invest, so are also of great importance.

Remember that the risk you take when investing in shares online depends largely on your thorough knowledge, understanding of how the stock market works, your ability to conduct a thorough analysis, and your experience or even intuition.

Unfortunately, no one can say for sure whether you will be a successful investment market player or not, but once you've tried it, you won't know for sure.

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