![]() Long-term investments: These refer to investments usually within a range of 7 to 10 years. Short-term investments are usually discouraged in Pakistan as there is a lot of volatility involved in the process These analyses assist an investor in studying how a stock might perform in the future.Īn investor can either make a short-term investment, a medium-term investment or a long-term investment.ĭay trading or short-term investments: These refer to transactions being made on a day-to-day basis. Technical analysis: A technical analysis is carried out by analyzing the stock’s price movements and charts. Stocks would be a better option for them as an investor can buy stocks in Pakistan with initial capital as little as Rs.5000.įundamental analysis: A fundamental analysis refers to assessing the stocks asset value. For instance, an investor with little capital is not advised to invest in real-estate. An investor is also advised to research the type of security they would like to invest in. It is also essential to be aware of the type of investment the investor wants to make. That is when sellers do not pay much attention to the prices that they are selling at and it is encouraged to buy then. For example, when a company’s position does not look as stable is a point where many shareholders look to sell their shares. Most investors recommend buying when everyone else is selling. The basics to this include trends.īullish Trend: A Bullish or upward trend means that the overall prices in an industry’s stocks have risen.īearish Trend: A bearish or a downward trend means that the overall prices in an industry have fallen. It is important to have a good understanding of the market before an investor starts investing. ![]() After that, the investor may start researching on which stocks look the most appealing in terms of investments. Some brokerage firms such as KTrade Securities Limited, aim to financially educate their investors through videos, blogs and seminars. A feature that attracts new investors is investor education. Swift customer service is another vital factor to consider. Professionals play a crucial role in the investor’s capital growth. They must hold a Trading Right Entitlement Certificate (TREC), a certification that allows a broker to trade. It is essential to have complete knowledge about the brokerage firm an investor is investing with, in order to avoid any fraudulent attempts by them. Brokers also charge commission which is a fee charged whenever an investor makes a buy or sell transaction. Different brokers have different fee structures. Some examples include a standard brokerage account, margin account, custodial account or a retirement account. Money can be easily deposited into or withdrawn from a brokerage account.Īn investor should know the type of brokerage account they want to open. ![]() When an investor is looking to invest money in Pakistan via Pakistan Stock Exchange, they are to first open an account with a reliable brokerage firm.īrokerage account: A brokerage account is a financial account. This blog aims to educate an investor on 10 different ways to generate passive income from the comfort of their home. Warren Buffet, one of the most successful investors till date stated, “ All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies”. ![]() The buyer and seller are both kept anonymous when these transactions are being made. Each share represents an equivalent stake in the equity of a company. They use this capital to further better their company. A firm issues shares to increase capital. This blog should help simplify a new investor’s concernsĪ stock market deals with the buying and selling of shares issued by a corporation. Most people have heard about investing in Pakistan Stock Exchange (PSX) but have not been able to do so due to lack of adequate information.
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