Salam, anyone here into shares or thinks they are a good long-term investment?

Personally, i think i've inherited some old fashioned genes which basically translates into putting any savings into things like property and gold.

But every now and again you hear how some guy made a nice slice on the stock market with shares, and you wonder if its worth a shot?

Obviously we all know success stories like warren buffet, or how if you had bought 100 Coca Cola or Microsoft shares you would probably be millionaire over your life, but for the average guy do you think shares are a good idea?

Would you say its akin to gambling, in the sense that sure some guys get rich with shares but then some guys win the lottery too, im talking for the majority of people would you say Shares is a good idea?

CASE AGAINST SHARES
The thing that puts me off is (not least how fast they lose value- especially in Pakistan as we saw recently) Shares seem to be driven by speculation.

What are the biggest factors in determining price of shares? The answer seems to be NEWS. Positive News drives the price up, and negative news pushes it down - but the News may not be presenting a accurate view of the company.

I think if the price of shares was attached to 1. Assets of the Company 2. the turnover/Profit it would be much safer investment for the long term.

As it stands, the risk (potentially you could lose every last pound you invested) outway the rewards. Something like Bonds with a fixed return may be a safer bet.

you gotta be kidding right?!! If you have excess money, I need it.... Just kidding yaar

Stop believing in fundamentals.It will sink you.News trading will cause you to go bankrupt.You have to judge the market through technical analysis.There are two types of technical analysis.One is done by predicting the future price and the other is done by reacting to the price.I am more in to Forex. PM me your email and i will send you some e-books.




Right now do not enter KSE as things are not good these days.

I am into shares but in UAE only ... Already got burnt in Nasdaq bought via ABN AMRO ! ooops Bank of Scotland now !

yes

but listen bro if you have no idea what "Financial Analysis" and "Technical Analysis" of stocks mean and how to do them then don't get into the stocks otherwise you'll lose most of your invested money.

successful speculators aren't gamblers who just throw money and depend on luck , they do financial and technical analysis first to study the share then they decide.

true like what you said in the question we hear from time to time how someone managed to gain alot of stocks , but did you ever thought about the thousands of someones who lost most of their money in it and didn't gain a dime ?

there is lots of money to be made here, its not based completely on luck. but does have an element of it. I am in the process of learning market fundamentals. I have been thinking about moving a small amount of money into the Pakistani stock market soon. Anyone have any previous knowledge?

Thanks for all the advice guys,

WingCommander.... not sure if you are aware but last week or so Pakistani investors lost alot of money in the shares they held, some losing 1/3 or even half their value or more on certain stock - so they ran riot and started burning down the stock exchanges.

However, my experience of investing i can tell you that if you were thinking of buying Pakistani shares, this is a good time for that - for the very reason that stock has lost alot of its value, you will naturally be able to pick it up cheaper.

If you play to hold, i think there is definitely some money to be made- but so long as you dont get too greedy, and know when to sell.

Personally, for me, in these uncertain times i think i will stick to bricks and mortar, lol call me a coward but i work hard for my money.

I suggest you stick with propery and gold....you just cannot go wrong with them.

yes I read about the slump, but slumps have hit stock markets around the world. Its hardly unique to Pakistan.

can anyone recommend a good stock broker?

Salaam guys, I have my own brokerage house in Islamabad. I graduated from UT Austin in Finance and worked in states for 5 years including 2 years on Wall Street with Marsh and Maclenan. Moved back to Pakistan a year ago and currently doing CFA waiting for third level exams. Anyways my advise is not to invest more than 20% of your total investments into stocks. Fundamentals should tell you which company to buy and technicals will tell you when to buy. Pakistani market is speculative and volatile and for that reason people make lot of money and also lose alot. If you ask my recommendation buy these shares on dips: FFC, BAFL, UBL, PPL, OGDC, PTCL, LUCK, MLCF, & PKGS. If you need any advise you can email me at faisalfatehtrade@live.com. Hope it helps.

My advice, buy shares but divide your portfolio into three categories :

1. Energy and metals.
2. Currencies/indexes that are tied to USD.
3. Extra funds as a buffer/cushion.

When the Energy and metal shares goes down, Currencies and indexes go up and vice versa. You will always be pretty much balanced. What goes up comes down and vice versa. Monitoring the shares for a while before you enter the shark infested water is highly reccommended.

I dont know where you live but I in Canada, twice a week gets up at 4:30 a.m. to buy shares and sell at 2:00 p.m the same day and make more per month then what I make at KPMG as an Auditor.

I love Forex Trading but right now i will have to save some money for it.