04-21-2006, 05:12 PM
Dear Sajjad,
Do u trade at the Karachi Stock EXchange (KSE) ???? Our stock exchange is a bit different from the stock exchanges all over the world.
Here, MOST people who come with small amounts of money like 1 or 5-6 lacs Rs, come with the dream of becoming MIllionares OVER-NITE. Hence, they dont just purchase securities with their OWN money. They purhcase it with BADLA or CFS & also in the future market. Hence, a person who has an equity bal of 5 lacs purchases securities worth 12-15 lacs !!! .... He is then too scared to hold on to these positions for more then even 24 hrs !!! due to the volatility of the market. Hence, the prime focus here is to "DAY TRADE". These traders for example, buy 20000 shares of DGKC @ 150.4 and when the share price fluctuates to 150.9 They sell & book profit of 10000. This is WHAT they keep on DOING ALL DAY !!!! Their "Niyat" is never to become an "investor" or partner of tht company. They just intend to "BET" tht this stock is going to to go up in the next 4 mins.
Now what is this ??? I will show u ppl, who came here by borrowing 3-4 lacs from their friends/bank & then LOST IT ALL & NOW OWN the BROKER 1 lacs or sthg. IF THEY ARE NOT GAMBLERs, then how can they LOOOSE all their money & become debtors to the broker???? DOes the share price go from 100 to -100 ??? Its all because they over-trade on borrowed money & then LOOSE. I call it simply GAMBLING.
My observations would also be confirmed by the absurd behaviour of the market. In a small market of 50 bn dollar capatilisation, we DAILY have trading volumes of 500 mln shares (some days close to 1 bln shares). Some of the most developed stock exchanges in the world dont have such high volumes, when compared with their capitalization. The problem also lies with education. I can show u some ppl who invested their money in the stock of "OGDC" but they did not know wht tht SYMbOL MEANT !!!! Let alone have ne idea abt the business of the company. Someone told them "keh aaj yeh charhay gaa, leh loo"....BAS !! and they got it.
PErsonally, I only trade with 100% my own money. I have NEVER purchased ne stock on borrowed money. NEver have I purchased ne stock with the intention of keeping it shorter then at-least a few days.
Do u trade at the Karachi Stock EXchange (KSE) ???? Our stock exchange is a bit different from the stock exchanges all over the world.
Here, MOST people who come with small amounts of money like 1 or 5-6 lacs Rs, come with the dream of becoming MIllionares OVER-NITE. Hence, they dont just purchase securities with their OWN money. They purhcase it with BADLA or CFS & also in the future market. Hence, a person who has an equity bal of 5 lacs purchases securities worth 12-15 lacs !!! .... He is then too scared to hold on to these positions for more then even 24 hrs !!! due to the volatility of the market. Hence, the prime focus here is to "DAY TRADE". These traders for example, buy 20000 shares of DGKC @ 150.4 and when the share price fluctuates to 150.9 They sell & book profit of 10000. This is WHAT they keep on DOING ALL DAY !!!! Their "Niyat" is never to become an "investor" or partner of tht company. They just intend to "BET" tht this stock is going to to go up in the next 4 mins.
Now what is this ??? I will show u ppl, who came here by borrowing 3-4 lacs from their friends/bank & then LOST IT ALL & NOW OWN the BROKER 1 lacs or sthg. IF THEY ARE NOT GAMBLERs, then how can they LOOOSE all their money & become debtors to the broker???? DOes the share price go from 100 to -100 ??? Its all because they over-trade on borrowed money & then LOOSE. I call it simply GAMBLING.
My observations would also be confirmed by the absurd behaviour of the market. In a small market of 50 bn dollar capatilisation, we DAILY have trading volumes of 500 mln shares (some days close to 1 bln shares). Some of the most developed stock exchanges in the world dont have such high volumes, when compared with their capitalization. The problem also lies with education. I can show u some ppl who invested their money in the stock of "OGDC" but they did not know wht tht SYMbOL MEANT !!!! Let alone have ne idea abt the business of the company. Someone told them "keh aaj yeh charhay gaa, leh loo"....BAS !! and they got it.
PErsonally, I only trade with 100% my own money. I have NEVER purchased ne stock on borrowed money. NEver have I purchased ne stock with the intention of keeping it shorter then at-least a few days.
