Stock Exchange Investment

Hello, My freind is thinking of investing some money to stock exchange just to try his luck. Not much around 1 Lac Or may be less. Please suggest any website, tutorial, personal veiws or anything which can help him.

Note: He does'nt know a thing about investing. Totally a noob in this matter.

First off, stocks are risky business and he shouldn't put in the money if he can't afford to lose it. He should do a LOT of studying on stocks basics and Pakistani stock markets, and he should paper-trade for a few months before he puts in real money. Lots of websites out there to help him learn. He could start off with www.kasbdirect.com (online trading in Karachi Stock Exchange) and www.investopedia.com . He should also read books by stock investment guru's like Warren Buffett. Another point worth mentioning is being well rounded and knowing how other investment activities work. Would suggest he also look into Foreign Exchange investment (Forex).

I hope he is not the one who said he wants to invest to 'try his luck'. Investing is not about luck, its about education, skill, control over oneself and taking calculated risks. If he wants to try his luck he should buy lottery tickets and spend the 1 lac to get something nice for himself.

HMmmmmm Thanks Sah for such a good reply.:)

Yes Your right. He got around 1 lac. he is just trying his luck so someone told him to buy some good shares and then sell them after a month or too.

What you will recommend, Where should he invest some money. He wants to get some good profit.

By the way can you move this thread to general discussion because i think i have placed it in the wrong category:(

Like I said he should do a lot of research into different investment opportunities and then see what suits him best. I played around with Forex a bit but then gave up on it cause I couldn't fit it into my schedule. Lots of money out there to be made, but if it was that easy then every second person would be a millionaire. If he is naive enough to think that the stock market is there to earn quick money, then he will lose all his money, but hopefully learn a lesson or two in life.

Ya well hopefully i will giive and tell your advice. May be he should invest it in some other things. Thanks anyways. More investing tips will be apreciated.

man once when kapco started privitising there was a lucky draw caried out by my mom's bank

her name came in to it and the bank people told her that she can buy the shares of KOT ADDU POWER COmpany

she invested in stocks and bought stocks of kapco worth 15000

and then he forgot about them

she bought 1000 shares worth 15 each and after about 1 year the price of them was highered to 32 each

she then sold them

and never thought again of any such thing as she is a simple lady.......

but IMO it is a good business and also prize bonds is a very good business

tell ur friend to invest in prize bonds where there is no risk of loss but a risk of winning

tell him to buy alot of prize bond in series and INSHALLAH he will get hos reward if his luck supports him

Hmmmm well yaar if your telling me about prize bonds then please...... My mom have more then 200 coupons of prize bond and she is still saving them. Its been 10 years I think. No Luck .

Personally I think prize bonds People are involved in this matter. You gie cash or you have big hands then your name will come in every QURANDAZI :)

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Hello, My freind is thinking of investing some money to stock exchange just to try his luck. Not much around 1 Lac Or may be less. Please suggest any website, tutorial, personal veiws or anything which can help him.

Note: He does’nt know a thing about investing. Totally a noob in this matter.

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Pointless investing in the Karachi stock market. Its basically non-functional at present because the govt. has imposed a floor on prices that is making price discovery impossible. Off market prices are 25-35% lower than market prices. I think your friend should avoid the stock market like the plague. Its best to just keep cash right now. There isn’t much room for risk taking in 1 lakh rupees.

Koool Man. Thanks for the help. I'm thinking of boroing money and then spend some on my domain registration and design :)

If your friend is really serious, he should look into Forex. He can easily get in with 1 lac, and if he manages to get a hang of it, theres a huge earning potential. Having said that it'd require months of very serious studying and testing with virtual accounts, which can be a rather frustrating experience especially if you have fantasy notions of earning quick money.

I would recommened to invest in National Saving Schemes i.e "Special Savings Certificates". Rate of return has just been increased by 2% and currently this 3 years investment is yielding approx 15%. This is a very safe and secured investement mode which has been tested in the past.

Stock market & mutual funds have been non-performers these days, therfore, one should steer away from them.

Ahan Thanks for the help. I told him every thing. Now he has made his miind to invest half in prize bonds and invest half in national saving scheme where you get prohit each month.:) Thanks for the help anyways

Thanks for taking time to help...

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Hello,

If you are wondering to earn money online. Now these days most of the people do online business. It provides us facility to do work any time and from anywhere. If you have some money to invest then stock market would be good for you, it’s very effective way to make money rapidly. You could just read some ebook for stock market and gain everything about online trading. Hope this will help you.

All the best!!

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thanks for information i really would to make money in this way, very interesting, seems like you have made lots of money in stocks, could you further guide me please.

[quote=", post:, topic:"]

You could just read some ebook for stock market and gain everything about online trading.
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What a sure fire way of losing all your money… if it was that easy, every second person would quit their day job and become an investor. jeez.

^^

@sah

is hikal guiding right way or wrong way? sah i am confused after reading your comments...

^ Never EVER fall for get rich quick schemes which promise lots of money with little work on your part. Any type of investing is tough if you do it right. It requires you to constantly educate yourself about investing concepts and to endlessly research the area you want to invest in (may it be stocks, forex, real estate etc etc).

You always want to avoid people who talk about investing with an attitude similar to hikal: 'make money rapidly', 'gain everything about online trading'... Those are just screaming warning flags.

If you're interested in stocks, then start by reading 'The Intelligent Investor' by Benjamin Graham (its the bible for stock investors and Warren Buffett swears by it. You can find the book easily online). After that start doing your research and 'paper trade' for a few months the same way you would do if it was real money. You can often find online stock brokers offering free trial accounts with virtual money using which you can practice.

i know a bit how stock markets work, roughly they reflect the general outlook of country's economy and now is not good time to invest, but they are cycles of highs n lows , hopefully as soon as our economy outlook will get better there will be good chance to invest coz stock will be under valued and are bound to go up,

a friend of mine did spend some time in stock market investment, 1st u hav 2 register through broker, he told me his perception was that at first brokers will give u good tips on trading to lure further investment and later lame tips, and his observation was that u should b present at stock market to get better idea of situation, n he did made some money,

my advice just go to stock market for few days n c how things work, n coz u dont know much about its working it will take time to get understanding of mechanics

I believe in penny stocks investment.Penny stocks are the easiest way to earn money in a short period of time. A reliable broker can supply the investor the most resourceful fact on trading. In addition a broker will have contacts that will allow getting a reasonable price on shares that the investor wishes to sell or trade.

Investing with a small amount, or investing in penny stocks, both in my opinion, are highly risky investments, as both are highly levered. Let me tell you how.

If you decide to invest 100,000 in stocks, like the friend of OP was thinking of, you can't buy even 1,000 shares of decent companies which are like trading in the range of 100-500 or even higher per share. So what you do, you lever your investment through broker, where your own money would be only a percentage of total investment, and rest will be financed by broker (and in turn, would be further financed by some bank). Say your equity is 20% and 80% is financed by the broker. A small change in this case would magnify your loss or profit by 5 times in this case, so if it's a loss, your investment could vanish just like that. Besides, you are unable to hold your position because of financing that will be incurring a high cost on daily basis.

Same goes with the penny stocks. If you buy 200,000 shares @50 paisas a share, even a change of 5 paisas would mean you gain or lose 10,000. Some would say there is more upside potential than downside, but how far down a stock can go? I would say it can go down to zero.

Investing in foreign exchange (according to my knowledge) is even riskier than investing in stock.