KSE - Choppy Sessions Ahead

14 April 2009 - KSE Index 100 kicked off the day with a brilliant start crossing the 8,000 mark with great ease. If you read my article of yesterday, I had predicted a maximum of 8,025 points reach of the Index. Well, your stock market advisor was spot on !! Cheers. I had also forecasted that the Index could decline to 7,025 levels max. The Index touched the low of 7,775 today and closed at 7,833 down 40 points from yesterday.

I congratulate all the investors on Index reaching 8,000 mark, a well deserved achievement. Cautious is the word for future. It seems that the Index will struggle around the 8,000 mark for a few days. My personal observation is that the market will stay around the level of 8,000 for a few days as there is no real news for it to clean break this landmark.

Investors will find opportunity next few days to enter and exit ona daily basis. if the market goes up in the 1st session it may close lower the same day and vice versa. if you are an oportunist, you know what to do. try and square your positions on a daily basis for the next few days.

PSO as I said yesterday made a decent gain today adn touched 211. At the same time NBP made a high of 111.39 but closed at 107.82 up Rs 1.46.

If you are my follower you would have exited NBP beyond 110 and may have re-entered at below 108 levels. NBP remains SPOT next 3 days and should touck 115. fingers crossed and I pray that we all make more money on this share.

Recommendation / Tip for tomorrow: be cautious. the big players will play with you next few days. invest small and exit early.

KSE Boom

13 April 2009 - KSE Index 100 today climbed 255 points to close at 7,872 level. It made a high of 7,908. Effectively, it can be said that KSE Index has now reached the major psychological level of 8,000 mark. Wow! what a success story !

Riding the wave are all those big and small investors who had faith in the Karachi Stock Market and the Government of Pakistan. Well done! returns come with risks and your risks have paid off.

Onwards, as the Index keeps climbing, the risks are also mounting and whilst one must look forward to the 9,000 mark, please incorporate the higher levels of risk in your return calculations. The market needs correction every 700 - 1000 points. I know we just had a small correction associated with Badla decision, but we all know the sharks need excuses and 8,000 might just be what they are looking for! watch out! Again, play well, make money and dont fall prey to these sharks.

Foreign funds keep flowing in and getting invested which is a very positive sign. My strategy for tomorrow is to invest 25% of your funds in medium term growth (up to 3 months) targeting 9,000 points. Trade daily with 50% of your funds. Here you should be able to close your positions at a loss which requires a lot of strength and willpower. everyday you can't win the system. be watchful and use common sense to enter the market, to hold and to exit booking either a profit or a loss. Do not get greedy! As for the remaining 25%, DO NOT INVEST.

Recommendation/ Top Pick Shares: I continue to focus most on NBP. At 106.36 it is closing in for the Target price of 115. In my opinion, one must start to exit/ liquidate positions starting 110 unless you are in for dividend and bonus shares. Today, BOP was a bit of a slow mover. If market goes up by 100 points tomorrow then BOP will surely see a gain of 5%. Another good share is PSO. It has somewhat found resistance at 200 and has struggles to clean break the level. Time is nearing when the 200 mark will be left way behind and the share will scoop the glory of 250.

Trading range for tomorrow: Between 7,725 and 8,025.

Best of luck!

KSE - Market Outlook 13 April 2009 - NBP Week

KSE Index 100, after its most amazing performance last week appears all set to capture the 8,000 post. Closing at 7,618 on Friday Index 100 is now only away by 380 points to what will be a landmark in the history of Karachi Stock Exchange.

When the market opens on Monday (13th April 2009), National Bank of Pakistan (NBP) would be SPOT and remain SPOT until Friday. All those investors who will hold their shares till the close of next Friday will be eligible for a dividend of Rs 6.5 per share and a bonus share of 20% against each share owned till Friday close. NBP share closed at Rs 101.59 on Friday.

In my opinion, NBP share should touch 110 at some point next week. Ideally, based on the payout at the end of the week it should close at 115. However, for all those who wish to sell the share next week and make a capital gain 110 is a good price.

If the share closes at 110 on Friday then after the payouts it will open next Monday at Rs. 83. Please note that MCB closed at approx. 171 on Friday 10 April 2009. I believe that if NBP closes at 110 then MCB will also make gains and close at 180 next Friday. Accordingly, next Monday we will see prices of 83 and 180 for NBP and MCB respectively.

If the above holds true then NBP will make immediate gains to reach 100 level to reduce the price difference with MCB.

It is a NBP week starting tomorrow. Play well and make money. Remember if NBP goes down a bit and closes at 100 levels on Friday then you should not dispose off this share. Hold it and get your Dividend and Bonus share because in that case it will open at 73 the following Monday which again is toooooo low for this share.

Please bear in mind that my recommendation is based on the assumption that the KSE 100 next week will either remain at par with last Friday's close or make gains. In case the Big players decide to play around with the market calling it profit taking or technical correction then the NBP share will have no control on its fate.

Best of luck for the next week which looks extremely promising.

KSE - Index Recovers amid Buying Frenzy (10 April 2009)

10 April 2009 - KSE 100 closed on Friday at 7,618 gaining 322 points over the previous day's close. The investors whilst rejecting SECP's decision to stop Badla have not allowed this decision to significantly impact the market levels. The market which had plunged by 325 points in the first 2 days following the decision climbed 322 points on the last trading day to negate the loss and bringing back the Index to par. What a way to end the week. Once again, all investors are happily enjoying their weekend!

It is apparent that investors are extremely serious to ensure a solid bounce back of the Stock Market which had deeply plunged in late 2008. Political instability, terrorist attacks and Badla stoppage have all failed to deter the investor sentiments.

Whilst the earning season is now over for a month, the foreign inflow of funds and the local investor drive appears enough for the Index to continue to rise.

Hopefully next week will bring in more good news for investors !

Asian Stock Market - 9 April 2009

Asian Stock Markets closed higher on Thursday snapping 2 days of losses as investors cheered Japan's record stimulus spending package and posting some rare positive news on economy.

Tokyo, Japan: The benchmark Nikkei-225 index climbed 321 points to close 8,916.
Hong Kong: The Hang Seng Index rose 2.95% or 426 points to close at 14,901.
Sydney, Australia: The S&P/ ASX 200 index rose 1.44% or 52 points to close at 3,671.
Singapore: The Strait Times iNdex rose 2.5% or 44.55 points to close at 1,828.
Kuala Lumpur, Malaysia: The KLCI rose 10 points to close at 917.89.
Wellington, New Zealand: The NZX-50 index rose only 2.24 points to close at 2,571.
Mumbai, India: The 30-share Sensex rose 61.52 points to close at 10,803.

US Stocks Surge

US Stocks surged on Thursday 9 April, 2009 on banking giant Wells Fargo's projected RECORD 1st quarter profit that spurred hopes of recovery in the financial sector.

The Dow Jones Industrial Average shot up 163.51 points to close at 8,000 points, the psychological level. The tech-heavy Nasdaq composite rose 43.54 points to close at 1,634 and Standard & Poor's 500 Index rose 20.36 points to close at 845.52 points.

Pakistan Forex Reserves Rise

Pakistan's foreign exchange reserves rose by $1.08 billion to $11.17 billion in the week ended April 4, announced the State Bank of Pakistan.

Currency Conversion Rates - 10 April 2009

The following are April 10, State Bank conversion rates:

US Dollar Pak Rs. 80.6199
Japenese Yen Pak Rs. 0.8049
Pound Sterling Pak Rs. 118.1404
Euro Pak Rs. 107.0391

KSE - Market Update 9 April 2009

Karachi Stock Market plunged 44 points today amid scare and insecurity caused lately by the decision of SECP to abolish Badla. Throughout the day the index moved directionless. The graph shows the indecisiveness of investors to stay, buy or exit.

Going down more than 150 points and then attempting to rise by 150 points the Index was choppy throughout the day and ended on a slightly negative note of 44 points down.

Stock Market: Badla - COT - CFS and CFS Mk II

Stock Market: Badla - COT - CFS and CFS Mk II

Stock Market: It is just not fair !!!

Stock Market: It is just not fair !!!

Stock Market: Why Should You Invest In Stock Market

Stock Market: Why Should You Invest In Stock Market

Asian Stock Markets

Asian Stock Markets closed lower on Wednesday, 8 April 2009:

Tokyo, Japan: The Nikkei-225 fell 238 points to 8,595.
KongKong: The Hang Seng Index closed down 454 points at 14,475.
Sydney, Australia: The S&P/ ASX 200 lost 87 points to 3,619.
Singapore: The Straits Times Index closed 18 points lower at 1,784.
Kuala Lumpur, Malaysia: The KLCI dropped 11.97 points to close at 907.87
Jakarta, Indonesia: The Jakarta Composite Index fell 25 points to close at 1,465.75.
Wellington, New Zealand: The benchmark NZX-50 Index fell 44 points to close at 2,569.
Mumbai, India: The benchmark Sensex-30 Index rose 207 points to close at 10,742.

Oil Prices Rise

Oil prices rebounded yesterday (8 April 2009) reversing earlier falls as traders digested less than expected increase in US Crude reserves and rebounding Wall Street shares.

New York's main futures contract, light sweet crude for May delivery, added 69 cents to reach $49.84 a barrel.

London's Brent North Sea oil for May delivery clawed back $1.21 to $52.43 a barrel.

Amercian crude oil investories jumped 1.6 million barrels in the week ending April 3. Analysts had expected a gain of 1.9 million barrels. However, crude oil stocks in the United States remain at their highest level since 1993 amid a deep recession.

Currency Conversion Rates - 9 April 2009

The following are Today's State Bank conversion rates for foreign currency deposits, dollar bearer certificates, foreign currency bearer certificates ans special US Dollar bonds:

US Dollar Rs. 80.6254
Japenese Yen Rs. 0.8081
Pound Sterling Rs. 118.1888
Euro Rs. 106.4901

Badla - COT - CFS and CFS Mk II

A speacial feature in the Pakistani, especially Karachi, Stock Market which has turned around lives of millions over the last couple of decades and is known to many as "Badla", "COT", "CFS" and "CFS Mk-II" is again playing an instrumental role in what could be termed as a "much needed correction". Badla in its true form is financing to buy more shares/ stocks than one's capacity. It is like bank financing with financing rates much higher than bank borrowings.

Effectively, whilst the small players have used to buy shares through Badla the big players use this as amoney making machine. They take bank borrowings at 12% and offer badla to small investors at may be 18%. There has always been a spread of atleast 3-4% which the big players have historically capitalised on.

I mentioned in my previous post that removing Badla, in a very fast growing Stock Exchange may not be a bad idea. for instance, we have seen the Stock Market index climb 50% in 2 months. Certainly, one should construe this as a serious point for a big correction and people with badla do tend to lose their wealth when big corrections take place. I believe that SECP may have undertaken the step to stop badla activities to largely protect the small investors from failing. My issue with SECP is that it did not handle it properly. You do not announce such decisions so abruptly and that too in the evening.

SECP should have introduced a better alternative instrument having better features. It is the responsibility of a regulator to work out modalities to protect all investors.

What the SECP has in store for all of us going forward is yet to be seen !!!

KSE Blood Bath - 8th April 2009

As I mentioned in my last post yesterday, the SECP decision to abolish Badla has negatively impacted the market. Index was down today 296 points and is all set to shed another 200-300 points this week.

Suffice to say, all this could have been handled in a much better way.

All those lucky ones who were able to sell their shares this morning must be relieved. A major battering took place during the second session. One needs to now take a back seat and watch the innings take the shape. This week appears gloomy with 2 days left before the weekend and small investors' confidence shaken.

It is expected that SECP will announce an alternative with in the next 2-3 days but nothing seems good enough now to revive the investor sentiments. Then again, we have seen this many a times before where such things are just referred to as hiccups and life moves on !!!!!

It is just not fair !!!

This evening, SECP Securities & Exchange Commission of Pakistan came out and announced a stop to all badla activities. All those who have purchased shares on badla will have 22 days from today to liquidate their shares or to inject cash in their trading accounts to cover for the badla positions.

Obviously, people who buy shares on badla do not have deep pockets and look to make extra buck in a fast growing market. These people have now been told today by the committee appointed by SECP that they have only 22 days to produce cash to cover their positions, the first thing they will do tomorrow is to go to their brokers and sell all there badla holdings.

As it is badla was very costly, costing arms & legs, but the real test will come tomorrow morning when all of us will be queing to sell the unfortunate and supposedly loss making shares. Who will be able to sell their shares at the Floor levels is yet to be seen. My gut feel is that the KSE index may go for a couple of floor locks in the next couple of days shedding 400 to 500 points.

SECP should not have taken such a hasty decision. It should have slowly removed it if it was necessary at all. Time and again, we have felt that there is minimal or no support for small investors who take the brunt of such brutal actions. Though, I agree with market rising so fast SECP should have interfered to avoid any future calamity or disaster, removing badla in this way is totally out of order and uncalled for.

I sense that tomorrow will start an era of bleeding for small investors and stock accumulation by the institutions and big sharks. God Help Us!

KSE - Market Update 7th April 2009

Today, the closing Bell had good news for my stocks with NBP, DGKC and BOP closing at the upper cap. Great news for all of you who were following my Top/ Best Pick shares. OGDC closed Re 1 lower as it is consolidating during SPOT period. HUBCO was another share which gained momentum during the sessions but closed unexpectedly just below previous day's level.

NBP appears top recommended share for this week and best performer with high dividend and bonus shares coming next week.

Karachi Stock Market closing above 7,600 at 7,635 is good news but a caution to all investors...... please try and reduce your holdings and wait for market correction which may happen anytime. Index has climbed almost 500 points without any hiccup. After doing so well lately especially the last one week with me please do not fall into the trap which may be in process of being laid by the Big Sharks.

Recommendation/ Tip: Follow my shares but with reduced holdings. book some profits!

Karachi Stock Exchange - Update 6 April 2009

Congratulations to you all who read my last article of yesterday with the OUTLOOOK for today. KSE Index 100 closed 86 points above the previous close, very much in line with our anticipation.

Our TOP PICKS i.e. NBP, BOP, DGKC and HUBCO all closed very high. Please note that the Karachi Stock Market closed today above 7,500 mark and is now poised to aim for 8,000 level.

OGDC and NBP are favourite stocks with high dividend yields this week. BOP and DGKC are also climbing in line with my previous posts.

TOP PICK/ TIP for tomorrow 7th April 2009: OGDC, NBP, DGKC, BOP and HUBCO.

Best peforming shares/ stocks at Karachi Stock Exchange (KSE) today were National Bank of Pakistan (NBP), Bank of Punjab (BOP), D G Khan Cement (DGKC), ACIL, ATRL, PRL and AHSL. There are other shares as well which performed well today, but I am generally concerned only with top/ best performing shares/ stocks. Please send me comments and pass on this Blog to friends and colleagues if you like my posts.

Outlook for Stock Market - Monday 6th April 09

Karachi Stock Market performed exceptionally well last week and came very close to 7,500 psychological mark. It reflected the generally positive sentiments in politics of the country and the improving economic situation. Foreign funds in excess of US dollar 1 Billion will soon be coming in to improve further the Federal Reserves of the country. Inflation for once seems under control and the pak rupee currency does not seem to be depreciating any more atleast for now.

Whilst the earning season has ended and eyes are set on the 1Q 2009 earning in a month from now, Dividends and Bonus Shares for a few BIG stocks are coming in to play during the next 7 days. POL and OGDC go SPOT next week followed by NBP over the next weekend.

It appears that KSE 100 Index may lose stream at some point during the next week and once again take a dip of 100 or more points as part of profit taking process for big investors. KSE should open tomorrow on a slightly lower side and should gain momentum in the second half. I see a range of 75 points up and 100 points below Friday's levels. the trading should be within this range as no solid event or news is expected tomorrow. The terrorist attacks over the weekend may have a minor impact on the market.

Top Picks for tomorrow: OGDC, NBP, DGKC, HUBCO and BOP

Attock Refinery & Adamjee Insurance

Watch out for 2 stocks: ATRL and ACIL. One in Refinery and other Insurance sector share, the 2 shares are leading the rallies. ATRL has been a naughty share lately and has shown tendency to go for continuous locks, caps and floors, 2-4 times consecutively. A strong share with holdings in POL and APL can make you a lot of money if you start buying this share in smaller chunks. if the price goes down then buy more and more and more because when it goes up again it will make the fastest money for you. With sentiments high, you can make a lot of money if you leave margin for technical corrections and keep buying this share in chunks. strategy is to accumulate.

ACIL is hot because it is in tremendous demand. BIG institutions have eyes set on this stock. Although insurance sector is seen to be suffering at the moment, ACIL has vast reserves which are invested in stock market and KSE 100 Index touching 7,500 valuations for ACIL owned securities has gone up considerably. Apply the same strategy as ATRL.

Please do not invest all your funds in one shot in these 2 shares.

Hub Power Company Ltd

HUBCO scrip offers a strong yield play with 12 month forward dividend yield of 17.5%. Dividend yield of 20% in FY 2010 and USD IRR of 26% over the remaining life of the project makes this share a very lucrative investment. This scrip has a minimal business risk as the Government of Pakistan has guaranteed a price which is dollar pegged. Pak Rupee currency depreciation only helps the profitability and Dividend payout of the company. At current market price of Rs 21, HUBCO share appears to be a good buy with potential, as per many analysts, of touching Rs 37 per share.

Karachi Stock Market's growth and dividend oriented shares include OGDC, NBP and HUBCO.

RECOMMENDATION: STRONG BUY

Stock Market Update - 3rd April 2009

Excellent close to the week and what a weekend we all are having!

The Karachi Stock Market KSE 100 index on Friday started off on a very positive note immediately gaining 100 points, continued the upward momentum throughout the 2 sessions and closed 241 points above the previous close.

My gut feel was correct that market would open high. However, one would have thought the predators would pull down the gains to lock their profits towards the close of play on Friday. It was pleasant to see that the sharks continued their buying till the close.

OGDC and NBP closed 5% and 3% high respectively. OGDC at Rs. 81.05 and NBP at 94.32. My earlier target price for both the shares has been achieved within 3 days. Well done to all who followed my TIP.

In my previous blogs I had talked about KSE index 100 touching 7,500. Well, need I say more, we have seen the target within a week. Here onwards, the index will attempt the 8,000 mark but with a lot of caution. you will see pluses and minuses before the psychological level of 8,000 is reached.

On Friday, Bank of Punjab closed at Rs. 12.51 ( Re. 1 gain over previous close). Rumour has it that one will see this share go up to Rs 20. Remember, in this stock market some shares climb on their intrinsic value and fundamental strength while others are managed through rumourmongers. watch out for this stock and if you want invest a relatively small portion of your funds in this script. If you do invest look for an exit between Rs 16 and 18.

DGKC closed at Rs. 25.14 - Recommendation continues to be BUY.

Hope you all are having a great weekend.

D G Khan Cement (Recommended: Buy)

DGKC share has lately been talked about alot. Rumour has it that this stock will cross Rs 30 and may touch 35. One can not ascribe a time frame as to when the target level of 30 will be attained. My instinct suggests that latest by early June, if not earlier, we will see it cross 30 mark. The share has been trading in the region of 21 to 23 for last few days. I am personally waiting for a break through in this share soon with atleast a couple of upper locks. I want to see this share give me a return of 50% within the next 2 to 2.5 months. Not bad!

A similar category share Lucky Cement was trading at only 41 a week back and closed above 54 today. So, what do you say? DGKC is owned by a renowned group and I do not see any reason why it should under-perform. DGKC closed high today at 23.95.

RECOMMENDATION: BUY

Who Followed My Tip For Today?

Dear Stock traders

I hope you all followed my tip for today. The stocks recommended were OGDC and NBP.

At market close today, OGDC closed on a cap at Rs 77.34 which is 5% gain from yesterday's close and National Bank of Pakistan closed at Rs 91.71 which was 4.4% gain from yesterday's close. NBP during intra-day trade today made a high of Rs 92.20.

If you were the follower of my tip today then congratulations and please send me your comments. If you did not get a chance to get into the trade today you need not worry. I will be posting more tips soon.

A Winning Streak !

Hurrah! Congratulations to all the investors who waited one day post-reinstatement of Mr. Shahbaz Sharif as CM Punjab for the market to give you the well deserved gain/ exit. Fortunately, the big sharks had to give in to your resilience and they all returned with a big bang too.

Now that you have realised / unrealised profits, as the case may be, you must be careful going forward. My sincere advice to you, if you are not one of those deep pocket guys, is to apply a piece meal investment criteria. If you are sitting on Rs 100, then invest only Rs 25 in the market tomorrow morning ( first session) and ride the wave.

I feel the first 2 hours will be crucial tomorrow morning. If the market climbs above 100 points in the first 2 hours then it will become a target of the predators in the second session. I mean to say if KSE opens high early the big sharks might want to book profits the same day and market may close below today's levels. Just be watchful!

Using instinct is good in such moments and exiting a little early is not always a bad call.

The Index today climed in line with my forecast and closed at 7,191 points. God willing we will all soon see the 7,500 mark. It can now safely be said that the 7,000 mark has now been crossed and the market must now stay above 7,000.

OGDC and NBP are nearing SPOT and the journey continues.....

Stock Pick for 2nd April

I am generally very bullish on 2 stocks namely, OGDC and National Bank of Pakistan. As of now, these two stocks offer attractive Dividend and Bonus Share to be paid out in April 2009.

NBP made a high of 94.50 last week and today closed at 87.86. Remember, it goes Spot on 11 April 2009 and is offering Rs 6.5 per share Dividend and 20% Bonus Shares. At this price, it will open X Div and X Bonus Shares at Rs 65 only which is unbelievably low for this share considering Muslim Commercial Bank which is trading X Div at 145. If all goes well with the financial and political situation in the country NBP should again see 94 within the next 2 weeks. Fingers crossed!

OGDC again attempted today to surpass the psychological level of 75 for close today but ended up only closing at 73.66. OGDC goes to Spot on 7th April and a dividend of Rs 1.75 per share coming this month it must touch 79 within the next 14 days. Again, this is known to be the best stock in Pakistan. Watchout!!

Both shares have to advance this week.

Who got made 1st April Fool?

One would have thought that yesterday's profit taking or technical correction was enough for the sharks to have gone home with all the great news.... huge realised profits and somewhat stability in political/ economic scenario! And that 1st April will see another good bounce back in KSE 100.

Well, the day started off on a very positive note with index gaining over 160 points and small investors gearing up confidently to see a good close to the day. Little did they know that 1st April was a day when they were going to be made fools out of. Surely, they realised the same when the clock ticked 3:30 pm and KSE 100 index closed only 71 points above the previous close.

The big sharks again took the sentiments to the higher levels and settled for another profit taking day. Well done sharks! Every dog has its day is all we can say.

Let tomorrow be the day for the small investors! Good luck !

Why Should You Invest In Stock Market

This is a question every beginer wants an answer for. A lot of first timers invest in the stock markets because they have seen others especially friends, family, relatives, colleagues etc make fortunes. Jumping in involves a lot of risk. One must appreciate the pros and cons of investing in stocks and needs to understand the basics to not lose hard earned money.

Typically, stock market investing is better than placing your funds in fixed deposits in a bank.

1. Capital Gains: Stocks appreciate in value an you can exit anytime you want without breaking the FD and getting penalised. You can own a stock for as long as you want. typically, you will have to pay commission twice i.e. both at the time of buying and selling. There is no Capital Gains Tax in some countries including Pakistan. If you buy 100 shares of OGDC at Rs 50 per share and invest Rs 5,000 and sell the shares when the price touches Rs 60, you will make a gross gain of 1,000 which is 20% return on investment. You will however incur brokerage and government fee at the time of buying and selling so you can assume a net gain of 18%. In Pakistan, there is no Capital Gains Tax so all the gains are for you.

2. Dividends: Good stocks bear dividends on a quarterly, half yearly or annual basis. Here is a chance to make income on a regular basis. A careful investor will invest in high yielding stocks. for example. OGDC gives Dividends on a quartely basis and on current stock price offers annualised dividend of 13%. Again, this is much better than the FD.

3. Bonus Shares: Some companies issue bonus shares to the investors. Bonus shares are generally issued when the company wants to reinvest the profits made in a year for expansion. Accordingly, it will either not pay dividend or pay a potion of earnings as dividend. The bonus shares when sold at market price will earn a decent gain.

The investors do need to realise that high returns often come with high risks. The stock market is a volatile market and it does not continuously adopt an upward trend. the investors need to understand and adopt stop loss mechanism, although in Pakistan the stop loss is not that effective. Here you need to give a price range and hope that your stop loss will trigger.

A good investor will first develop an understanding into the scripts and choose to invest in stocks which are relatively safe and offer high dividend yield. Also, please never put all your eggs in one basket by spending all your money on buying only one stock. You must have a diversified portfolio of good shares from 3 or more industries. It only helps!

Importantly, do not go all out and invest all your money in one day on buying shares at a certain price. Adopt a tier buying system by establish buying levels. e.g. if you have Rs 100,000 and you want to buy OGDC shares which is say trading at Rs 50 then invest between 25% to 33% on that day at that price. When the OGDC share goes up say by Rs 5 then invest 10% more in the script.

Do you know what OGDC does? you must know what the company is all about, what are its future plans, what are the analysts' recommendations for this stock, what is the history of profits and dividends and importantly what are the next 3 years profit forecasts.

Never jump into buying a share, just because your next door neighbour is doing it!

If you have any questions or comments, please let me know.

Happy investing!