Financiers, brokers enjoying win-win position

Posted on 11.09.06 by StockPK Team @ 5:06 pm    

One of the simplest characteristics of the bourses all across the globe is that some investors make smart profits while others lose money in the speculative equity markets. But, there are some permanent profit-makers i.e. brokers and financiers who are always in a win-win position whether the markets are rising or falling.

The position of the financiers and brokers would become more secure than ever thanks to the SECP’s recently introduced revised Risk Management System (RMS) that was otherwise generally believed to protect the interests of investors, leading analysts observed.

SSGC wins Rs4bn financing facility

Posted on 11.09.06 by StockPK Team @ 3:06 pm    

The Sui Southern Gas Company (SSGC) on Wednesday signed Rs4 billion financing facility with a consortium of banks led by National Bank of Pakistan (NBP) to fund its ongoing ambitious expansion project.

The Managing Director of SSGC, Munawar Baseer Ahmad, Naveed Khan of ABN-AMRO, Badar Kazmi of Standards Chartered Bank, and Badar Mannan of Dubai Islamic Bank inked the financial deal at SSGC head office in the presence of State Bank Governor Dr Shamshad Akhtar.

NBP, ABN-AMRO, Standard Chartered Bank, Bank Al-Flah and Dubai Islamic Bank are the members of the consortium, which will provide Rs4 billion to SSGC including Rs1 billion sukuk bond for a period of five years with the same rate of return (KIBOR plus the undisclosed spread).

Terrorist Attack Threat on Stock Exchanges

Posted on 11.08.06 by StockPK Team @ 1:00 pm    

Intelligence agencies have been informed of a potential terrorism strike on the country’s stock exchanges by the end of November, intelligence sources told Daily Times on Monday.

Sources said that terrorists would try to sabotage Pakistan’s economy by attacking the stock exchanges and that the intelligence agencies had forwarded the information to the relevant quarters for action.

Punjab Police IG Ziaul Hasan Khan and Sindh Police IG Jehangir Mirza were not available for comment despite repeated attempts by Daily Times. However, sources in the Punjab Police Special Branch told Daily Times that security agencies were alert to possible terrorism, especially in the aftermath of the airstrike on a madrassa in Bajaur Agency suspected of being a training camp for militants.

Unified trading at LSE, ISE from Dec

Posted on 11.08.06 by StockPK Team @ 10:37 am    

The Lahore Stock Exchange (LSE) has planned mock trading of Unified Trading System (UTS) by the end of current month.

“The UTS would be a common platform for trading in commonly-listed securities on a real-time basis through execution of orders entered by members of Lahore and Islamabad Stock Exchanges,” said Hamid M Imtiazi, Managing Director, LSE, while speaking at a press conference here on Tuesday.

He informed that computerisation work has already been completed at the LSE in this regard while integration of UTS with ISE was being made.

How Much Money Can I Make With Trading

Posted on 11.06.06 by StockPK Team @ 2:46 pm    

How Much Money Can I Make With Trading?
What account size do I need?

First of all, let’s clarify a common misunderstanding: You never risk your full account size. You always have a “catastrophic stop”, and it is important to define the “ruin” before you start trading. Let’s say you start with a $10,000 account, and you decide to stop trading if you lost $2,000. In this example you are “ruined” if your account decreases to $8,000. Though you invest $10,000, you only risk $2,000.

Back to the first question: “What account size do I need?”

KSE Broker membership card costs Rs100m

Posted on 11.06.06 by StockPK Team @ 10:12 am    

The stock broker’s card at the Karachi Stock Exchange bears a price tag of Rs100 to Rs110 million. Three years ago when the then management auctioned a couple of unclaimed cards to obtain funds for renovation of the buildings, at the last call the buyers were willing to pay no more than Rs35 million a piece.

But before anyone starts to envy the 200 brokers who hold the KSE cards, he ought to look around at the phenomenal rise in prices of other assets as well.

Trading as a Business

Posted on 11.05.06 by StockPK Team @ 2:46 pm    

What can I expect to make my first year of trading?

We get questions like this one quite often. We find that most aspiring traders don’t have a clue as to what to expect from the market. Yet here they are, putting up their money. Most are going to learn the hard way.

We have no idea in the world what you can expect to make in your first year of trading, or any other year, for that matter. What we can tell you is that without proper guidance and help, you are probably going to have some very bitter experiences. Why? Because your anticipations are almost completely wrong.

Ways to Acquire Discipline in Trading

Posted on 11.04.06 by StockPK Team @ 2:46 pm    

One way to acquire discipline in trading…

Personally, I believe discipline can be learned, although at times it is very painful. When I began trading, I was a very undisciplined person. But trading and the markets forced me to become disciplined. Was the discipline already there and just needed to be extracted? Or did I actually learn it? I can’t truly be sure.

One of the largest trading firms kept their offices near Yeshivas. A yeshiva is a rabbinical school that produces rabbis of the Jewish religion. The students coming out of the yeshiva were highly disciplined and made excellent traders. Was the discipline innate in those yeshiva students? Or did they learn it under the strict supervision of the rabbis who controlled their lives? I think they learned it.

The Secret Art of Backtesting

Posted on 11.03.06 by StockPK Team @ 5:21 pm    

If you have not back tested your trading system, you might as well trade with your eyes close.

In fact, whatever technical analysis criterion you use to trade with, be it moving averages, candle sticks, volatility breakouts, fibonacci retracements or any other trading system you have devised you’re going to need to back test your trading system thoroughly and objectively in order to remove any possible doubt about it’s capability.

To remove any self-doubt you need to thoroughly back test or simulate your trading system in such away that it matches the conditions under which it will be traded. Once you have established that you have a reliable and robust trading system only then will you be confident in trading your system.

Brokers allowed pledging CFS-financed securities

Posted on 11.03.06 by StockPK Team @ 3:00 pm    

The Securities and Exchange Commission of Pakistan (SECP) has allowed the broker CFS financier to pledge CFS-financed securities with the stock exchange as deposit against exposure. In a notification issued here on Thursday, the SECP said that such pledging will only be allowed in the case of proprietary CFS financing by the broker.

Consequently, from November 6, 2006, CFS financed securities which are lying in a separate blocked CFS account in the name of the said broker CFS financier may be pledged with the stock exchanges in settlement of the brokers’ exposure commitment.