Investing in Dhaka Stock Exchange: A Beginner's Guide

Introduction

The stock market can be a great way to grow wealth, but it carries risks. Understanding the basics is crucial before investing your hard-earned money.

Step 1: Open a BO Account

To trade in the DSE, you need a Beneficiary Owner (BO) account.

Related: Mutual Funds vs. Direct Stocks: Which is Better for You?

• Where: Any brokerage house (LankaBangla, IDLC, BRAC EPL).
• Documents: NID, Bank Account details, Photos, Nominee details.
• Cost: Approx. ?450 - ?1,000.

Step 2: Understanding the Market

• Primary Market (IPO): Buying shares directly from the company when they first list. Low risk.
• Secondary Market: Buying/selling shares from other investors. Higher risk and volatility.

Step 3: How to Buy/Sell

You can trade via:

• Phone: Call your broker to place orders.
• Mobile App: Most brokers have apps (DSE Mobile) for real-time trading.
• Online: Through the broker's website.

Tips for Beginners

• Invest Long Term: Don't look for quick profits. Think 5-10 years.
• Diversify: Don't put all your money in one sector. Buy stocks from Banking, Pharma, and Telco.
• Research: Look at the company's EPS (Earnings Per Share) and PE (Price-Earnings) ratio.
• Avoid Rumors: "Gambling" on rumors is the fastest way to lose money.

Conclusion

Start small. Invest only what you can afford to lose. Education is your best investment.