You want to invest in the stock exchange .. Here are expert tips

Mohammed Al-Hayek - Kuwait

With the cost of living, price inflation and the burdens of daily life, Hamed, a salesperson for a major electronics store in Kuwait for nearly nine years, is trying to find a way to improve his limited income.

The 30-year-old pays a third of his salary, which does not exceed four hundred Kuwaiti dinars (about $ 1280), for rent for his modest apartment in Farwaniya Governorate, while the rest is distributed among his "buried" silver in his bedroom, monthly bill, car premium, telephone, etc. Of other necessary expenses.

During the short breaks, Hamed flips through his phone, switching between applications specialized in oil prices, gold, stocks and real estate, in search of a suitable option in which to employ "Tahawish" years of bitter alienation.

Only 3,000 dinars (about $ 9,000) are all the possessions of an Egyptian young man who plans to marry his cousin in a year, but what would he do with such a small amount before entering the golden cage?

Financial analyst and expert on financial markets, Ali Al-Enezi answers this question by saying that investing in stocks is now easy and available to all, especially those who do not have large amounts (such as Hamid) through which they can buy a property or launch a private project, as well as those who do not find time Sufficient to invest in real or direct economies.

However, things are not rosy in the way that some might imagine, according to Al-Enezi in a statement to Al Jazeera Net, as the investment in stocks and access to the stock exchange should not be random, but must be made according to clear and specific criteria.

How to start?
Al-Enezi asserts that reading and reading about the stock market, risks and fundamental analysis, and knowing the person himself with the ultimate goal of buying a particular stock (investment or speculation), are prerequisites before entering the world of financial markets.

According to Al-Enezi, you have to answer more than one question before making the final decision, for example: Do you have the ability to evaluate stocks? So can you make returns? Or to conflict? That is, do you have the tools and fundamentals of technical analysis that give you the ability to make quick gains?

It should be noted, first and foremost, about the categories of stocks, their returns and their risks, as well as the minimum technical and financial analysis, as well as an understanding of how to enter and exit quickly in some cases.

He warns that it is an easy and dangerous market at the same time, as you can lose money quickly, so there are many caveats, but in return there are opportunities and good return, especially since the prices of many commodities, especially attractive in the Gulf stock exchanges, which entered the emerging markets club.

Al-Enezi believes that the novice seeking to invest in the stock market and achieve acceptable returns with a minimum risk, consult a company or a trusted entity due to its limited financial potential, in order to know the history of the target share and dividends and dividends during previous years.

Al-Enezi cites the example that those who want to acquire a banking stock should know the current interest rates and their potential impact on bank profits, as well as those who want to buy Etisalat shares, should realize that this sector has reached saturation, which means that its future returns will witness some decline.

It is advisable to choose stable and well performing stocks, stay away from highly indebted and volatile stocks, and those that make profits from spot deals and non-operational activity.

Speculation and virtual currencies
Al-Enezi warns non-professional investors to stay away from speculation as it is a risky process. The tempting messages about fictitious returns, given that the majority of these methods are mere fraudulent disguised, albeit legal in form.

For his part, Kuwaiti economist Maytham Al-Shakhs pointed out that the process of starting the investment in the stock market is determined by the investor's personality, the duration of the investment, the number of shares targeted and the amount of funds to be invested.

"When an investor chooses a specific stock, he should start a follow-up journey at the various levels, starting with the board of directors and the strategic owners with large stakes, through everything related to the sector under the stock, to the growth or contraction of this," Maitham al-Shakhs said. Sector.

He considered that banks are often the best to invest in stocks due to many considerations including: high profits, feasible dividends, continuous guarantee, and tight control by central banks, being the most professional regulators in the application of standards for the preservation of banks' capital, guaranteeing their deposits, and monitoring their loans.

He also advised novice investors to monitor all the factors surrounding the target stock, and to know as much information as possible in preparation for making the appropriate decision, and to develop a strategy for taking profit at predetermined rates.

He pointed out that the majority of investors are in favor of quick returns and high rates, so investing in the stock market and speculation in stocks and buying for the purpose of selling and not for the purpose of distributing the annual, may be the choice of many of them, even those who have a small amount.