Wednesday, January 05, 2011

Stock Trade 101 - Sold my first shares on the Kuwait Stock Echange!

Ok, I am really excited and doing cartwheels at the moment.

I just sold my first lot of shares on the Kuwait Stock Exchange, for 200% returns!

People gotta fly, and airplane companies gotta lease planes, so on that note, I would like to thank ALAFCO (Aviation Leasing & Financing Co.) for making this possible for me.

A year or so ago, I decided to venture with a small amount of money onto the stock exchange of Kuwait, it was an amount that I would not mind losing, or having tied up for an extended period of time.

If you go back a couple of months, you will find I gave people pointers on how to invest in Kuwait. Now I will tell you how to sell.

You can buy stocks without the assistance of a broker easily online. Selling is the tricky part.

You have to call a number. I use Union Securities Brokerage Co. (USBC - 1837777) because they allow you to open an account for any amount you choose, unlike NBK Capital, the greedy slime, who require a minimum of KD5,000.

There are two markets in the stock exchange that I wish to talk about, Round lot and Odd lot. Round lot means multiples of 1,000+ (high value), Odd lot is a lot less than 1,000 (for example, 233 shares, perfect for the average Joe Six-Pack).

People kept telling me you can buy shares on the Odd lot market easily, but selling will be difficult. I am here to say, not so.

I called up the broker and placed my order, she asked me to call back in 5 minutes, I took a wee (pun intended) bit longer, and as I viewed this (Kuwait stock exchange odd lot order book), I found that my shares were on display, and a buyer was making a counter-offer (haggling), so she told me I was late in calling back, and that the buyer wants them for so-&-so. I reduced my original price to entice them, and BOOM! next thing I know, upon hitting refresh, my shares are gone. I get a call immediately from the broker telling me the transaction was executed. And I am not doubly richer than when I first brought the stock.

A year ago, I purchased the ALAFCO shares for 0.176fils, today, I sold them for 0.360fils. If my maths with the 200% is faulty, forgive me, but I doubled my original investment. And that is a rate of return beyond that offered by banks (interest is less than or equal to 1% right now).

If anyone has any questions on the stock market of Kuwait (anything that does not involve speculation!) please feel free to ask :)

I believe in the following formula:
Risk = Reward


LorD AymZ said...

this day in age, we no longer need to hunt animals for the "thrill of the chase", but im guessing this is the same feeling of conquest!

plus hunting animals is barbaric, profiting off companies is not

Anonymous said...

I think you should say that you've got 100% return

Anonymous said...

Im searching the web regarding the stock exchange in kuwait, actually i have no idea how does it work. i got my shares by inheritance. i have a lot of question in my u know a place where i can study stock exchange