ARE STOCK BROKERS ARE GETTING PROFIT IN THE FIELD
The Concept of Online Trading
Trading is usually considered one that requires much effort and is not a pool everyone can dive into. It requires great determination and persistence to earn a living. Trading can be pursued as a full-time career, part-time career, or even simply to earn extra revenue. The electronic Exchange of assets via a commercial trading platform of brokerage is known as Online Trading.
The evolution of Information Technology has resulted in the rise of e-commerce. Due to which the online buying and selling of financial assets have escalated. These financial assets include company shares (public or private), products and services, currencies, gold, etc. Presently, all the trade can be conducted via electronic devices such as computers, laptops, mobile, etc., anywhere in the world with proprietary software. This enables customers to buy a variety of commodities from numerous industries the world over.
- PAKISTAN’S TAKE ON ONLINE TRADING
- The Concept of Online Stores
- The Pakistan Stock Exchange
- Stock Exchange Markets in Pakistan
- Trading Essences
PAKISTAN’S TAKE ON ONLINE TRADING
Online trade is also known as “e-trade.” It has emerged as the fastest-growing market worldwide. Pakistan’s economy has been boosted through online trading. The youth plays a vital role here as they are highly competent with modern tactics and strategies. Apart from other innovations, online trading offers outspreading opportunities in the whole merchandising sector regardless of the size of a business. Retailers also use not only web stores but media like TV channels for selling their products.
The Concept of Online Stores
Pakistan has an e-commerce portal that accommodates approximately 1.2 million individual visitors monthly on its website and offers more than 400 products and 16,000 retails. To enhance the growth rate of E-commerce, it is a must that satisfaction of consumers and operational productivity is guaranteed. Buying and selling groceries made through websites or phones cover a massive area with great numbers and range. Recently in Pakistan, a variety of online grocery stores are launched that deal in essential consumer products, including lentils, oil, rice, vegetables, etc., and domestic and personal goods like detergents, shampoos, toothpaste, etc.
Various fashion-based commodities for exports are also being sold via many sites. The number of small and medium-scale online stores delivering items to consumer’s doorsteps is running their business across Pakistan is increasing rapidly.
The Pakistan Stock Exchange
One of the most popular and vital online trading markets is the Stock Exchange Market. The buying and selling of shares/stocks of various companies significantly impact a country’s economy, and such a market is called a Stock Exchange Market. An example is ‘The Pakistan Stock Exchange’ (PSX).
Just like a supermarket is a place where everything for domestic use is available under one roof, the PSX is also a stock store. Everyone interested in the sale or purchase of stocks and shares of any company can carry out their trade at the Pakistan Stock Exchange (PSX).
Stockbrokers are the persons who do business with the Exchange in place of the shareholders.
Stock Exchange Markets in Pakistan
There are three Stock Exchange markets in Pakistan:
- Pakistan Stock Exchange; established in the year 1947. It is also known as Karachi Stock Exchange.
- Lahore Stock Exchange; established in the year 1971.
- Islamabad Stock Exchange; established in the year 1989.
The Pakistan Stock Exchange was founded soon after the establishment of Pakistan. Currently, it has over 644 registered companies.
Stock trading is often regarded as a challenging game involving strategic planning and discipline. To cope with the highly dynamic and complex nature of the stock market, a trader must strictly stick to rules and regulations, have strong decision power, practice research, and focus on the targets and constraints. It is necessary to practice patience to stay calm and remain focused.
Blind assumptions about the rise or fall in the prices of stock will lead you nowhere. On the contrary, a trader needs to be equipped with updated knowledge and make decisions utilising the facts and logic for exchange activities. However, having good intuition has an essential role following experience and sensible judgment.
Consistency is the key to ace the stock market. One-time profit doesn’t make you a pro, and a single loss doesn’t make you a loser. In either a win or loss situation, a trader must analyse the lesson behind it, enhancing the trading skills.
Independent research is the most vital task a trader needs to carry out before trading. This will help to devise a complete set of steps that will lead you to the door of success. But before that, the foremost thing is to establish goals and then stick with the plan.
Diversification is another crucial element that a trader must consider before investing everything in a single place. A diversified portfolio is a better option as that includes stocking with a variety of companies or different stock mutual funds, government, and corporate bonds. In addition, a variety of investments from other investment groups such as real estate may be added to diversify a portfolio further. Thus, diversity will lead you to acquire optimum advantage of market conditions and prevent unfavourable downfalls.
Pakistan’s stock market is emerging in many aspects. It is functioning as an evolving market yielding high profits, high impulsiveness, and greater marketing intensity. However, it is comparatively incapable of mobilizing additional assets. As a result, the stock market of Pakistan is somewhat segregated from the significant needs offering a potential site for expansion.