5th March 2026 - 9 min read
Starting your investment journey can feel overwhelming, especially when looking at foreign markets like the US stock exchange. The sheer volatility and the big question of when to buy can cause anxiety for beginners. However, there’s a disciplined strategy that can simplify the process and help you build long-term wealth: the Regular Savings Plan (RSP), also known as dollar-cost averaging.
A Regular Savings Plan allows you to buy into specific stocks or Exchange Traded Funds (ETFs) with a set amount on a daily, weekly, or monthly basis. Instead of trying to ‘time the market’ by investing a large sum all at once, you build your investment gradually, making it an excellent starting point for new investors. Moomoo’s platform allows you to set up your RSP in a few steps, automating your regular investments so you can maintain consistency without manual tracking.
Understanding Dollar-Cost Averaging
One of the biggest fears for new investors is buying stocks right before the price drops. Cost averaging tackles this problem directly. With moomoo’s RSP, you invest by setting a fixed number of shares to purchase at regular intervals. When prices drop, that fixed quantity costs you less. When prices rise, the same number of shares costs more. Over time, this creates purchase prices that reflect different market conditions, and you can adjust your share quantity if you want to buy more when prices are favorable.
Take this example. You decide to buy 5 shares every month in a stock. In Month 1, the stock costs RM 90 (approximately USD $20) per share, so you invest RM 450 (approximately USD $100). Month 2 sees the price drop to RM 45 (approximately USD $10) per share, and those same 5 shares cost you RM 225 (approximately USD $50). By Month 3, when the price rises to RM 113 (approximately USD $25) per share, you invest RM 565 (approximately USD $125) for your 5 shares. You’re building your position consistently, and you have the flexibility to increase your share quantity when you spot favorable prices. You’ve captured different price points without the stress of trying to predict the perfect moment.
Research shows that trying to time the market is extremely difficult, even for professional investors. RSP removes that pressure entirely. You’re not constantly second-guessing yourself or watching every market fluctuation with anxiety.
The Power of Consistency and Compound Growth
RSP creates a ‘forced savings’ mechanism that works particularly well for long-term goals like retirement or education funds. The principle of compound growth explains why consistency matters so much. When you invest regularly over time, your contributions accumulate, your investments generate returns, and crucially, those returns start generating their own returns.
In the early years, most growth comes from what you put in. But as time passes, the returns on your returns begin to accelerate. Financial advisors stress this point constantly: time in the market beats timing the market. Even modest regular contributions over 20-30 years can build substantial wealth because you’re giving compound growth more time to work.
Breaking Down the Entry Barriers
Many beginners think they need thousands of ringgit saved up before they can start investing. Modern platforms have completely changed this. Malaysian unit trusts let you start from RM 50-100 per month. For US stocks through platforms like moomoo, you can begin with as little as USD $5 (approximately RM 23) through fractional shares.
Fractional shares mean you don’t need to buy whole shares of expensive stocks anymore. If you want to invest RM 90 (USD $20) in a RM 1,800 (USD $400) stock, you can own 0.05 shares and you’ll still receive proportional dividends and growth. This puts blue-chip stocks and index ETFs within reach of virtually anyone with a steady income.
The Psychological Advantage
Perhaps the most underrated benefit is psychological. Research on investor behaviour consistently shows that emotional decision-making, such as panic selling during downturns or excessive buying during rallies, is one of the biggest obstacles to building long-term wealth.
RSP removes timing pressure. You’re not wondering if now is the “right” moment. When markets drop, you’re automatically buying more shares at lower prices, which is actually a good thing. You’re committed to a plan rather than reacting to daily news. Investing becomes routine, like paying any other bill. Studies show that systematic investors experience significantly less stress during market volatility and are more likely to stick with their strategy through complete market cycles.
Long-term planners benefit most: those investing for five years or more for goals like education funds or retirement. You have time to ride out market volatility and fully capture the compounding effect. Short-term market dips become less concerning when you’re investing for decades.
If putting a large sum in all at once makes you uncomfortable, RSP provides a gentler entry. You spread your purchases across multiple time periods and price points rather than risking everything on a single entry.
For young professionals with steady income, RSP fits naturally into monthly budgeting. Whether you start with RM 100 or RM 1,000 per month, the key is consistency. As your career progresses and income grows, you can increase contributions, but starting now matters more than starting big.
Modern trading platforms like moomoo have made RSP remarkably accessible. Navigate to the dedicated RSP section (Market > US > RSP on the moomoo app) to view curated options featuring stable blue-chip stocks and stock index ETFs suitable for dollar-cost averaging.
Before committing real money, use the built-in calculator to backtest your strategy against historical data. Adjust parameters like investment cycle (daily, weekly, or monthly), amount (whatever fits your budget), and time range to see how different market periods would have affected your plan. This visualisation helps you set realistic expectations.
Once you’ve decided on your strategy, click “Create Plan” and configure your preferences. Set up auto-execution so investments happen automatically, monitor your portfolio in real-time through “My Portfolio”, and modify, pause, or adjust your plan anytime as your situation changes.
On fees: RSP doesn’t charge additional setup fees beyond standard trading costs. With moomoo, fractional US stock trades (less than 1 share) have zero commission, with only a 0.99% platform usage fee capped at RM 4.50 (USD $0.99) per order. This keeps costs minimal for small, regular investments.
A Regular Savings Plan makes investing sustainable, manageable, and emotionally comfortable for people who might otherwise never start. For beginners with steady income, RSP removes the three biggest barriers: not having enough money (start with RM 100 or RM 23 [USD $5]), not knowing when to invest (invest consistently; timing becomes irrelevant), and being scared of losing money (systematic approach reduces emotional mistakes).
Focus on the discipline of regular contributions and trust the power of time and compound growth. You’re giving yourself the best chance of building meaningful long-term wealth without the stress and anxiety that stops most people from beginning.
Ready to start? Explore moomoo’s Regular Savings Plan features here and see how straightforward it can be to build your portfolio systematically.
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Christina writes about personal finance with an eye for making the complicated feel straightforward. She is drawn to the everyday money decisions people face and genuinely enjoys finding the clearest way to explain them. Between articles, she is probably napping, on a hiking trail, or terrorising her sister’s cats.
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