Trader/Investor's corner.

[SBD-3]

I don't know how much of the members do trading/investing. I am creating this thread for discussions on investment avenues (Bonds,Mutual Funds, Stocks and Forex).
For those who have some money in the pocket,
1-Pakistan Petrolium will have its SPO coming in this month at floor price of 175 PKR. The upside of stock is around 210 PKR plus the company is fundamentally very strong. Aside from dividend income, the price appreciation is expected to be 20%.
2- Engro Powergen Qadirpur is also expected to make an IPO this month, the price is expected to be 20 whereas the companies with the financials similar to EPQ are trading ~30-40. Company is profitable and is expected start paying off dividends from the first year of enlistment plus a price appreciation of around >50%.

 

[VCheng]

@Aether is your man!

 

[SBD-3]

Some of the funds where I am currently invested in
1-MCB ISLAMIC INCOME FUND (offers around 8-8.5% PA with no downside)
2-PAKISTAN INTERNATIONAL ELEMENT ISLAMIC ASSET ALLOCATION FUND (15-30% PA depending upon market)
3-PAK OMAN ISLAMIC ASSET ALLOCATION FUND (~15-20 PA depending upon market)
4-NAFA ISLAMIC ASSET ALLOCATION FUND (20-25% PA return depending upon market)
3-Engro Islamic Rupiyah Certificate (13% PA with no downside)

 

[Leader]

Riba.

 

[SBD-3]

Riba.

They are all riba-free funds

 

[SBD-3]

Some of the best online equity trading solutions
IGI | i-Trade
JS GlobalOnline - Faster Trading Portal
..:: AHL ~ Arif Habib Limited | Online Trading ::..

 

[SBD-3]

OGDC's SPO is expected next month.
Update: PPL's SPO is delayed till end September.

 

[Rasengan]

OGDC's SPO is expected next month.
Update: PPL's SPO is delayed till end SEPTEMBER.

Which technical indicators do you normally utilize in your trading strategy?

 

[Imran Khan]

hum awam ke pass khany ko roti hai na light invest kahaan se kareen gaay

 

[SBD-3]

hum awam ke pass khany ko roti hai na light invest kahaan se kareen gaay

Wow, PDF par anay key liya internet connection aur computer hay but khanay key liya roti nahi....nice!

Which technical indicators do you normally utilize in your trading strategy?

Bollinger Band,RSI and Momentum are my preferred ones. But they are not always successful especially for satta stocks like PIA,BYCO,Dost,Telecard etc. Strong understanding of fundamentals is also highly necessary for good and timely entry.

 

[Imran Khan]

Wow, PDF par anay key liya internet connection aur computer hay but khanay key liya roti nahi....nice!


Bollinger Band,RSI and Momentum are my preferred ones. But they are not always successful especially for satta stocks like PIA,BYCO,Dost,Telecard etc. Strong understanding of fundamentals is also highly necessary for good and timely entry.

net cafe waly ka hai hazoor nasha ban gya hai or uska bhi udhaar ab 2300 ho gya hai

 

[Rasengan]

Bollinger Band,RSI and Momentum are my preferred ones. But they are not always successful especially for satta like PIA,BYCO,Dost,Telecard etc. Strong understanding of fundamentals is also highly necessary for good and timely entry.

Those three indicators work exceptionally well, although they do tend to lag most of the time which could decrease your chances in maximizing your pip gain. RSI does determine upon the assumption if a financial instrument is oversold or overbought, however its prone to many fake signals of a possible reversal. Therefore normally I used RSI with the ADX which shows the strength of a trend and whether a market is ranging or trending. When you mix this with the DMI indicator you become more accurate in your entry and exit positions, because it allows you to understand who is in control of the market at the right time. Therefore when a trader uses these tools in conjunction with pivot points, then he has a high success rate in determining reversal patterns.

I like using MACD because of the crossover of signal lines and it works very well with Stochastic slow. However again most western indicators are lagging behind time so you need to wait for confirmation in either going long or short to overcome possible fakeout signals. I love using Bollinger bands especially with Japanese candlestick formation. I would personally recommend Ichimoku Kinko Kyo because its a fantastic indicator for breakouts, and it determines support and resistance levels. What is even more fascinating about this technical tool is that it enables the trader to gauge market sentiment 26 periods ahead making it the only true leading indicator currently available.

In my trading strategy I use Japanese Candlestick (over 50 different combinations), RSI, ADX, DMI, MACD, Stochastic slow, Ichimoku Kinki Kyo, pivot points, fibonacci, Elliot Wave, Bollinger bands, SMA and EMA. Chart patterns are also imoprtant. Fundamentals are also imperative, hence why its important to look at historical data to understand how the market was previous effected and what is the likely outcome in the present situation. For me the forex market and the commodity market is the best in comparison to stocks or bonds.

 

[SBD-3]

Those three indicators work exceptionally well, although they do tend to lag most of the time which could decrease your chances in maximizing your pip gain. RSI does determine upon the assumption if a financial instrument is oversold or overbought, however its prone to many fake signals of a possible reversal. Therefore normally I used RSI with the ADX which shows the strength of a trend and whether a market is ranging or trending. When you mix this with the DMI indicator you become more accurate in your entry and exit positions, because it allows you to understand who is in control of the market at the right time. Therefore when a trader uses these tools in conjunction with pivot points, then he has a high success rate in determining reversal patterns.

I like using MACD because of the crossover of signal lines and it works very well with Stochastic slow. However again most western indicators are lagging behind time so you need to wait for confirmation in either going long or short to overcome possible fakeout signals. I love using Bollinger bands especially with Japanese candlestick formation. I would personally recommend Ichimoku Kinko Kyo because its a fantastic indicator for breakouts, and it determines support and resistance levels. What is even more fascinating about this technical tool is that it enables the trader to gauge market sentiment 26 periods ahead making it the only true leading indicator currently available.

In my trading strategy I use Japanese Candlestick (over 50 different combinations), RSI, ADX, DMI, MACD, Stochastic slow, Ichimoku Kinki Kyo, pivot points, fibonacci, Elliot Wave, Bollinger bands, SMA and EMA. Chart patterns are also imoprtant. Fundamentals are also imperative, hence why its important to look at historical data to understand how the market was previous effected and what is the likely outcome in the present situation. For me the forex market and the commodity market is the best in comparison to stocks or bonds.

Technicals hold well in FX, because there are a lot more investors there vis-a-vis KSE. So Technical analysis helps little in Karachi Stock Exchange. I initially based my entries based on technical but they are not the best value in town. And also that FX has a lot more folks using technicals thus it makes a lot more sense to use Techs there but in KSE the dynamics are very different since
1-Investors rather rely on their broker's view rather than using information to ascertain valuation.
2-Bigges in the market are a big driving force.

 

[Rasengan]

Technicals hold well in FX, because there are a lot more investors there vis-a-vis KSE. So Technical analysis helps little in Karachi STOCK EXCHANGE. I initially based my entries based on technical but they are not the best value in town. And also that FX has a lot more folks using technicals thus it makes a lot more sense to use Techs there but in KSE the dynamics are very different since
1-Investors rather rely on their broker's view rather than using information to ascertain valuation.
2-Bigges in THE MARKET are a big driving force.

Your statement is correct that the FX market contains more liquidity and volume in comparison to the Stock Market in Karachi, henceforth technical analysis works relatively well for traders. However when you look at the technical indicators does history not repeat itself when a specific fundamental news comes out in relation to the Karachi Stock Exchange? Because in essence technical analysis is just interpreting market data for you, to understand the type of sentiment in the market.

So in your opinion do these traders who dabble in the Karachi Stock Exchange use technical indicators or rather just price action to determine there trades on the floor? Do you employ any risk management strategies? In my trading strategy I risk 1% of my capital and aim for 1% gain each day and definitely use stop-loss and limit in my trade. Its nice to see Pakistani's in general who are interested to study or trade in the financial markets.

 

[SBD-3]

Engro Corporation Limited and Engro Powergen Limited collectively intend to offer a total of 80.95 million ordinary shares or 25% of the total paid up capital of Engro Powergen Qadirpur Limited (the Company).

11.25% of the paid up capital i.e. 36,427,500 ordinary shares will be offered to Institutional Investors to determine the fair value whereas employees will be offered 1.25% of the paid up capital i.e. 4,047,500 ordinary shares at the fair price determined by the institutional investors. In addition, the remaining 40,475,000 ordinary shares will be offered to the general public (at a later date but before October 30, 2014) at the same price.