Wednesday, February 15, 2006

The Stock Market

Stock market related opinion:

Want to trade on the DFM (Dubai Financial Market) eh? Listen up then, this advice will help,.,.
The UAE stock market is a cause of great pain and great joy for many people here in the UAE. Unfortunately, small investors here are (largely) amatures with no sense whatsoever of stock market strategies. NEVER be swayed by rumors, EVER.

To be a credible small investor, look at the long run benefits of the cash statements , perform an indepedent analysis of both your stocks and the market as a whole to get the big picture when making the decision to invest. Otherwise dont bother investing, your damaging yourself, and the credibility of the market. I say this because the over-reaction to anything happening to Emaar runs deeper than just the stock price being affected. Short-term small investors here have no idea how to adapt properly to market develpments, and it takes time to do so, therefore, if you plan to invest, plan for the long-term with contingency plans (very important, contingency plans).

I say this because I see too many people running around like headless chickens in our stock markets, especially with the recent dividends from emaar, which investors took in a bad way, expecting bonus stocks. Anyone who truly knows what they are doing, understands that bonus stocks are basically cutting the pie into smaller pieces (which means that you get no real value added), at least with dividends, you get money!

In addition, the way emaar is being treated these days is a big mistake by investors,.,. Its either a play by kbareeya (big fish) to make more money, or it is truly being undervalued by the average joe, which is a bad play on his part (or both :-p).

Yes Qatari and Kuwaiti stocks look good at the moment, but who wouldnt want to be part of the biggest real-estate company in the world?! (which by the way drives all the other stocks up and down, in case you didnt know) and the fact that its being undervalued makes the pie all the more sweeter.

(just dont forget to strategize)

6 comments:

flamin said...

i went to the stock market today with my friend. we've been trying to understand the whole thing and today we opened an account with the broker and stuff. it's just a lil weird being there coz u have all those guys just STARING at us gurls like they've never seen gurls before :S i prefer online trading.

MJ said...

There is a stock game in the university, which is basically like the real thing, except it's a game. They give you a certain amount of money and any one can join, and the winner is the one who profit the most. I was thinking of joining it but maybe I need to learn more about the whole thing first.

Arabized said...

teach me oh wise one about the stock market!

3li said...

MD: the stock market does that to men,.,. (kidding!!!!!!! :-p)

MJ: Ive actually heard of students manipulating the real market so that they could win at that game (its not only at uni)

arabized: Well, teaching is a looong process, but the start is always to read the newspapers, it helps alot in understanding the stocks.

secretdubai said...

Hello - I stuck you on the blogroll at UAE community blog. If you would like a member invite there please drop me an email to [my username here] at gmail.

Thanks and welcome!

Arabized said...

haha so 3lo from your advice, i'll acquire the information needed to play the stock market?

its a game, and if you are good at gambling and strategizing, you'll be a great player.

i'll just keep my EYES and EARS open.

Im just not sure if the stock market here is exactly 'fair',if you know what i mean.