1. Learn, Earn and Be Rich!
As the saying goes, ‘To make money, you have to spend money.’ In this day and age, we’re certainly
enthusiastic about splurging, given our endless wants and needs. Unfortunately our income always falls
short in backing up our desires.
However,all is not lost! You can easily curb the sorrows of cash outflow by investing in the stock market
and engaging yourself in the market analysis.
“No work should be done without prior knowledge,” said by Mr. Abdul MatinPatwary, the Acting
Managing Director of DSE. He highlights that one should be aware of the market mechanisms before
investing in the stock market in order to get the best results out of it.
In case you’re not familiar with the prerequisites of the stock market, you can pull up your socks
and gear up for a great start. You don’t need an academic background in accounting or finance to
understand the basic formula of gaining profit from the stock market. The return (profit) you
make from a stock is as simple as buying the stock at a lower price and selling it at a higher
price. After deducting the buying commission (approximately 0.4%) and the selling commission
(approximately 0.4%) you will get your net profit. Therefore, your returns depend entirely on the
price movement of the stocks you bought. However, price can move in either direction for
various reasons.
According to Mr. Nizam Uddin Ahmed, Deputy Manager, Product and Development, Dhaka
Stock Exchange “Before investing in any share of a company, you should go for a Trend
Analysis i.e. analyses the fluctuation of the rate of share over the last few years. This will help
you understand the best time to sell or buy any share (Secondary Share) in order to get optimum
profit out of it”. Here are a few tips to approach the stock market
Start with buying IPO If your capital is limited at the initial stage, you can start with buying
IPO (initial public offering) where the rate of share is quite low. “For beginners, it is advisable to
sell it as soon as the price gets higher so as to avoid any losses,” advises the GM of Admin and
HR, DSE, Mr. Samiul Islam. Definitely, you don’t want to lose money at the very first move of
your investment in stock market.
Be convicted about your decisions before you commit to it. ‘Higher the risk, higher the
return,’ the proverb might be a quick fix to earning a large profit from the stock market. Try not
to cave in to the ongoing speculation in the market. Instead, buy shares after careful
consideration of the performance of the company; then it is unlikely that you will lose.
While you’re at it, keep in mind that share prices are also affected by social, political,
economical and technological issues. According to Mr. Abdul Matin Patwary (AMD of DSE),
“Authentic information about market and analysis about company’s EPS (Earning Per Share),
P/E (Price Earnings ratio, dividend yield will make you knowledgeable about the market and will
increase the chances to get a safe return.”
Take suggestion from advisors. Your returns entirely depend on how wisely you select your
stocks. One way that you could possibly minimise your risk is by investing in different
companies in different sectors which is referred to as diversification. As it is commonly said

2. “Don't put all your eggs in one basket’’ .Your advisors can suggest you good stocks but even
they cannot assure you full return always.
As per Mr.Shahidul Islam, the CEO of VIPB Asset Management Company, Bangladesh’s stock
market was massively overvalued before the crash that started in late 2010. Now the situation is
quite stable as SEC (Security Exchange Commission) is regulating the market quite efficiently.
Moreover, you can expect return from stock market only if you choose the stock wisely. Keep
your spending habits in check and plan to invest for the long term which will eventually help you
to play your cards.