Pakistan Stock Exchange (PSX) : A Good Deal or A Bad One

Its hard to find a reasonable job based on skill or education people. Retired People are suffering from anxiety and depression just because they couldnt earn what they used to,Students are not paid as much as they should be and middle age have other problems if they become the sole breadwinner. In short, the point is that one source of income is not enough and we definitely need another source of Income.

Recently, I got interested towards the buying/selling of stocks and before I started investing real money into it, I decided to run a mock try of investing into stock market.

I knew nothing about the stock market, Where and When to buy or sell the stock or anything related to it but to see how it really goes, I decided to create two portfolios , Active and Passive. In Active Portfolio, I decided to buy and sell stocks regularly and in Passive, I decided to buy them and leave them alone to see the result.

I invested 1million in each portfolio to see how it goes and bought 10 stocks each in different portfolio. The choices of stocks was random and not much thought was given while buying them but as I said it was to test, I waited for a week to see the returns on my investment.

Luckily, during that week PSX gave a positive return of 3.5% and my stock in Active gave me a return of 2.5 % whereas Passive gave a return of 4.5%. Now, Today its been three months investing in Stock Market and almost after every week I sell my stocks and buy new stocks and now I am investing by making a sense of which stock will go in which direction. 

Not always are my assumptions right but the point is I had negative returns and positive return while the stock market was down and vice versa, but the main thing is that in both Portfolios , Active and Passive and I earned almost 30% on my both investments which is almost 0.6 million on 2million which is a very hefty amount to be earned during these three months.

Apart from that, These Stocks pay dividends on the stocks being bought which is another source of income which brings me to the conclusion that in any stocks you invest ,You will earn more than your investments.

The risk is higher but thats not a problem if you are Risk Averse or Risk Taker as you can buy and sleep on your stocks and receive dividend income or start investing in it.

I encourage all the people reading this article to investing in PSX.

I will share a few tips on investing in another article. Support me to see more articles like this.

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