April 08, 2018 / BY AKD

Guides to a better stock investing experience

The stock exchange investments aren’t the basic investment task that you might take lightly. The number gams in a stock exchange market have a lot to do with the pace of your heartbeat, one wrong step can be a really big deal.

Before stepping into the number’s world, one needs to have the correct amount of information. In other words, less information isn’t helpful in this case. Detailed knowledge is necessary for a new investor.

If you’re a new investor, you might have heard the common phrases and believe that this is how things work in the stock market. Most of the times, the mainstream knowledge isn’t the truth.

Here are all the hidden rules of stock trading:

Like mentioned above, common knowledge doesn’t mean it’s always correct. The clever investor goes beyond mainstream agenda.

Here are some of the stock exchange rules every new investor should know, in order to succeed:

  1.  Don’t be a member of a group of herds:

"Be fearful when others are greedy, and be greedy when others are fearful!"- Warren Buffet

The greatest investor of all time, Warren Buffet left his piece of advice for the new investors, only clever will make use out of it.

Herd mentality is followed the most in a stock exchange market. People around you might force or suggest you invest in a particular stock. Upon seeing a number of people investing in that particular stock, you’ll want to do the same but this doesn’t make it the right way.

The walls of a stock exchange witnessed religious followers of herd mentality. It has also witnessed their mutual strategy, backfiring.

  1. Never invest dumbly:

Having knowledge about the business you’re investing in, is the foremost rule!

Some people don’t really feel that there’s any need to be pre-informed about the business or being technically aware of how the business’s works. Contrary to the common school of thought existing in the trading world, whether you’re a new investor or an old one, having the detailed knowledge about businesses’ work is necessary before you invest in it.

  1. Don’t let emotions take over your well-handled process:

The major reason behind an investor’s loss is his uncontrolled emotions. Emotions like greed and fear, in particular, becomes the real culprit behind his/her loss.

We can’t disagree with the fact that in a bulk-market, the most tempting sight is, the sight of increasing wealth. And one can’t act saint and not care about the progress of his investments, but usually, this greed brings the investor in hot water.

In order to achieve persistent success, one needs to have control on his/her emotions.

  1. Informed decisions are the best decisions:

Do we really need to mention this?

Detailed knowledge, appropriate research and proper information these are the steps towards success in a stock market.

Just like any other stock exchange, Pakistan stock exchange works in the same manner. Therefore, these set of hidden rules are applicable there as well.




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