Pakistan
Stock Exchange (PSX) is the most prominent stock exchange in Pakistan. If you
have been looking to invest in stocks, this would be the perfect opportunity to
engage in one of the Asia’s best markets.
Simple
keys can help you accumulate capital calmly. After all, your money should be
working for you, not the other way around, steps you can use in the Stock Market
includes:
• Research - Strive to learn more about the
Market you want to invest in. This will help you to come up with a set of rules
geared towards a successful outcome. In this case, research on the common
market trends of Pakistan and figure out whether it’s a market you want to
invest in, in the long term or short term. Ensure you stay within your plan
after establishing them.
• Trading is different to investing –
investing in stock comprises of buying stock and holding it for long-term gains
while trading is mainly focused on short-term benefits. Mid and long-term
investors are not worried about short-term market fluctuations. This is due to
the extensive research on the dynamics that influence the stock they want to
invest in, i.e., a company’s standing in the industry, changes in management,
the company’s stock charts, etc. all these help to make a more informed
decision on the choice of stocks to invest in.
• Diversify your investment portfolio – this
means engaging your investment in stocks of different sectors. By taking on
greater risk, you stand to realize a higher return on investment.
Diversification also helps you shield yourself from market downturns.
• Risk management – establish your risk
tolerance before building your portfolio. After establishing this, you need to
determine your loss level and stop loss level. These will help you manage your
portfolio and see how profitable it is.
After
considering all the above, you will now need to put them into practice. You do
this by:
i. Open an account with a brokerage firm like
AZEE Securities. By registering with a firm, you get access to tools offered to
the client as well as you will be able to get acquainted with the layout.
ii. Read books and articles, attend seminars and
classes on investing in stocks. These will prove to provide you with a wealth
of education on your journey in trading in the stock market.
iii. Get help from a mentor. Find a mentor who
has been successful in investing in stocks. They will help you navigate the
stock market waters, provide you with useful resources and be there for any
questions you may have.
iv. Find
inspiration by following the greats.
v. Practise through an online simulator. This
helps you get experience and help you be more confident in your investment
choices.
