Karachi stock trading advice

Society Business and Career
1

Hi,

I and a friend in Karachi have decided to try stocks with some capital that we can afford. I’m based in the middle east so can only do research online and stuff, while my friend is currently at home for a few months and has this time to completely focus on this.
We have signed up with a broker rafionline to do the trades and are now reading and watching whatever financial info we can get via newspapers or tv or internet.

Can anyone out there please provide any additional help or suggestion or advice? Our initial investment idea is about 5-10 lacs. Are there any short courses in karachi that might be useful? or is there another online forum or hangout where we can learn ?

thanks very much

2

Re: Karachi stock trading advice

Make friends with brokers. Most of the profit-making opportunities come from insider information on how big players in the market are moving, rather than public information. KSE is a small market, easily manipulated. Beware.

3

Re: Karachi stock trading advice

I have zero knowledge abt the Karachi market. So won't offer any comments on that.

However, it is obvious you are not ready to "try" the stock market. Best way to lose money is to get into this area without doing your homework.

Investment is for long term.

You did say this is capital u can afford to lose. Even so, do your homework.

As Warren Buffet has said there r two rules of investing
1 don't use capital
2.dont forget rule number 1

I would add - even if it's capital u can afford to lose.

4

Re: Karachi stock trading advice

^KSE: Summary for - Yahoo! Finance](http://finance.yahoo.com/q?s=^KSE)

Per this chart the Karachi stock exchange is up 8 X since 2009. All time high close to 30000.

Why do people start thinking abt investing in a market ONLY AFTER it reaches an all time high? Why does this work lie a charm?

Note that circa jan 2012 KSE was added to Morgan Stanley frontier mkt index. So lot of foreign money has come in. That has been one catalyst. (I am not discounting other catalysts).

I have no idea what the p to e is. But I do know it is much higher than it was in 2009.

5

Re: Karachi stock trading advice

Also I think sometime in last 2 years lots of tax cheats got amnesty. So lots of money poured in.

6

Re: Karachi stock trading advice

That is the 'foreign investment' you mentioned in your previous post. :)

Apart from that, I dont think he said that he can afford to lose this amount. He just said he can afford 1 million (along with his friend, which in itself is a big mistake in my opinion. Never invest jointly with a friend or a partner. Everyone's happy so long as you are making money, but when you lose money, thats when the blame starts getting thrown around.)

Other than that, KSE is a highly manipulated market, and the high index value is not reflective of the market strength, or overall economy for that matter. The only advice I can give for an amount that 'low' is to park it in 2 or 3 blue chip firms, and make money from dividends. Dont focus too much on price appreciation.