Tips For Safe Stock Trading in Stock Exchanges
Securities and Exchange Commission of Pakistan has issued the list of do’s and don’ts for those investors who want to invest money in share business of any stock market of Pakistan. A public service message has been published in form of ad in all national newspapers of Pakistan form protection and education of capital market investors. We have published that ad too on this page. This list has been released to save the investors from any fraud. If you are going to invest your money in any stock market of Pakistan then follow the instructions given below for a safe investment.
Do’s of Stock Trading
1-It is highly recommended to deal with broker registered with Securities and Exchange Commission of Pakistan. SECP and stock exchanges have given the list of all registered brokers on their websites, so before investment check the status of the broker first from these websites.
2-Account opening form is a very important document, read terms and conditions written on it carefully and fill it thoroughly. Keep the copy of (AOFs) with you for your personal record.
3-Crossed cheques in the name of brokers is the safest method of transferring money in the account of broker so always use this method.
4-Another tip is to give order to your broker in writing alternatively use the recorded telephone line of the broker.
5-You must make sure to receive a trade confirmation within a day.
6-You must get the official schedule of all applicable fee and charges from your broker for avoiding any inconvenience in future. It will help you in comparing the charges deducted from your account.
7-Last but not least always get periodical statement of accounts from your broker and CDC. Compare this statement with your record on regular basis.
Don’ts of Stock Trading
1-We have already mentioned that account opening form is a basic document so never leave a single column blank in your AOF.
2-Never execute even a single document without reading and fully understanding its terms and conditions.
3-Do not go without getting all documents of transactions in good faith.
4-Never transact based on media news, rumors, so called tips or promises of guaranteed or high profit.
5-You should not authorize anyone to operate your account on your behalf as it may be very harmful for you.
If you have any complaint or claim then lodge it write now on the following websites
Karachi Stock Exchange – www,kse.com.pk
Lahore Stock Exchange – www.lse.com.pk
Islamabad Stock Exchange – www.ise.com.pk
You may also lodge your complaint with Securities and Exchange Commission of Pakistan. Here ie related link of SECP website;
UAN; 051 111 11 7327
Read our following articles for guidance about stock trading and forex trading;
Learn Online Stock Trading – 25 Super Tips
Learn Forex Trading – 25 Super Tips For Beginners
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Do’s & Don’ts of Stock Trading in Stock Markets