Stocks
Investors follow stock market activity at the Dubai Financial Market Image Credit: Gulf News

Dubai: Investing in stocks is much easier than you thought. You may invest in a stock through a broker. There are many brokers in the UAE which offers this service through which you can invest in local shares like Emaar Properties or Emirates NBD — or those of international companies like Apple, Amazon or Netflix.

How to find a broker?

Go to the DFM’s website to find the brokers in town, and then call them individually to find out the fee structure.

But how do you choose among these stocks, what should be the barometer?

It’s not that simple. You may want to take a look at the profitability of the company, its cash flow and the future prospects. You have an option here to depend on your stock broker who may publish periodic research reports.

You can either be a Swing Trader or a value investor or a growth investor:

Swing trader

A swing trading position is held longer than a day trading position, but shorter than a buy and hold investment strategy that can be held for months or years.

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Value Investing

A value investor believes that the market overreacts to both good and bad news. He/she would look for stocks that they believe the market has undervalued; thereby profiting by buying when the price is deflated.

Growth Investing

Growth investors invest in companies that show above-average growth. Growth investing focuses on capital appreciation. Growth investing kind of contrasts with value investing.