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Investing in PSX – A worthwhile Investment

Investing in PSX - A worthwhile Investment

Reasons to consider before Investing in Stock Market

Stock Exchange or Stock Market is the place, where buying and selling activities of Shares take place. It is a place where people buy shares from any available shareholder and sell to any available investor. The sole purpose of stock exchange is capital development, a centralized place where companies raise their capital by the money of investors. The very first stock exchange established in Europe in 16th century when companies don’t usually become public, but only those semi-public companies which are leased by government to do business. Later in 18th century, the New York Stock Exchange-NYSE appeared and started trading of equity shares. Furthermore, stock exchanges started to appear in each continent, and later each country has its own stock exchange. In Pakistan, it recognized in Sept 18th, 1947 with name “Karachi Stock Exchange-KSE” with two other stock exchanges “Lahore Stock Exchange-LSE” and “Islamabad Stock Exchange-ISE”, and later changed its name to Pakistan Stock Exchange, better known as PSX. Today, the PSX is worth Rs. 3.37 billion as on January 2021.

You have seen people saying stock exchange is all about luck, a place of gambling, or if you want to ruin your life then invest in stock exchange. You may also have seen people who become rich by investing in stock market, and also those people who lose their life savings by taking one bad decision. But what exactly it needs to be a player of success to become wealthy by investing in stocks? Well, it is not just a stock market, but a market of stocks.

PSX have more success ratio in the market of stock exchange in current era. A survey had done by Intermarket securities in which it is stated that PSX is expected to cross 50,000 points by December 2021, giving 38% return on benchmark of PSX-100 Index. There are some reasons to consider before investing in Pakistan Stock Market.

Behind every stock, there is a company, see what it is doing. Don’t focus on rumors. Investing on a company without having background information is like playing poker without looking your cards.

Be disciplined and have patience. You cannot have a baby in one month if you make 9 women pregnant. If you’re thinking to get easy money from stock, then stay away. Success takes time to flourish fruitful results.

Great things come from small beginnings. Start from small amount, don’t invest your blood sweat money on stock entirely. Take start from Rs. 10,000/- and later invest the profit from the initial investment in purchasing other companies’ shares.

Paying more for stocks and later become empty handed. Don’t invest on those companies whose share price are too high, you will get less shares and if value decline, then you lose hope of investing to stock any other time.

Knowledge is power-don’t waste it. Keeping the economic, political, Interest rate and technological factors in consideration. Pakistan is a place where anything can happen at any time. Markets are not stable. However, the situation is gradually progressing and opening doors to investors to earn easy money. Keeping these factors in consideration will not only make you a good investor but also make you to see future of PSX.

All above points will turned your investment into profit if you keep them in consideration before investing in stock market.

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