Buy Baidu shares in Pakistan
The modern world is now unthinkable without Internet technology.
Today, it has gained a wide range of applications and is used in many areas. They enable people to interact with each other, as well as to store, transmit and accumulate useful and important information.
Progress has not gone unnoticed in the investment system.
Now you do not need to visit a bank branch or the office of the company in which you would like to invest your money. All transactions are available to you online, no matter where you are at the moment.
In this short article, we will take a look at how you can invest in Baidu shares in Pakistan.
Baidu: brief company info
Baidu is a Chinese company that provides web services, the main one being the search engine of the same name - the leader among Chinese search engines. In the global market, the company is the fourth-largest search engine with a share of 1.06%.
Baidu is headquartered in Beijing and registered in the Cayman Islands. The Chinese market accounts for 98% of the company's revenues.
The story of Baidu began in 2000. The company's founders, US-educated young men Eric Xu and Robin Li, successfully raised billions of dollars in investment from Chinese businessmen. Their aim was to create an internet company that would not be inferior to their American competitors. The exact date of foundation is January 12, 2010, when the domain of Baidu.com was registered.
Baidu has positioned itself as the leading artificial intelligence company in the PRC. The company invests 21% of its revenue in research and development in this area.
And it certainly has the advantage of operating in the country with the largest population. After all, the more data there is, the better artificial intelligence learns.
China's Baidu search engine is among the most prominent in the world. It is inferior to Google in terms of the number of search queries it processes, but it confidently surpasses Bing. In addition to web search, Baidu also provides dozens of other services.
Among the new promising areas are unmanned robot taxis and electric cars. The popular Baidu App, includes such services as games, short video newsletters, an encyclopedia, maps, a disease diagnostic application, a social network, cloud computing and more.
The company is now showing very good financial results. As of December 31, 2020, the Chinese search engine Baidu had about 41,000 employees, with more than half of them working in research and development.
The company ranked 297th in the Forbes Global 2000 list of the world's largest public companies for 2019, including 186th in market capitalization, 181st in net profit and 675th in turnover.
The company's net income for 2020 was more than $3 billion. The internet company earned $351 million in the last quarter, with net income 152% higher than analysts' expectations.
As of the date of this review, Baidu's share price is $219.74.
Baidu is currently planning to expand its offerings in emerging Chinese markets. The company plans to launch its own Android app.
As the company is growing rapidly and has ambitious plans for the near future, it is certainly becoming of interest to investors.
How to invest in Baidu shares in Pakistan?
The large number of technical tools for analysing companies has made online investing much more convenient.
This is especially true now that the pandemic, which has affected both private and public companies around the world in various ways, including in Pakistan, is having a negative impact on investor sentiment.
However, Baidu is holding steady enough.
The company's shares are high-tech and have shown a steady upward trend and continue to attract more and more investors.
Baidu's initial public offering took place in 2005 on the NASDAQ stock exchange, in an offering Baidu shares set a decade record - by the end of the trading session they had more than quadrupled in value.
The company's shares are now actively traded on American and Chinese stock exchanges.
To understand how to invest in Baidu stock in Pakistan, one needs to understand the company's financials, analyse historical share prices and make predictions based on the economic and political situation in the country.
Newcomers often don't want to get into the intricacies and invest intuitively. As a result, they lose their investment and become disillusioned with the stock market.
To invest in Baidu shares in Pakistan, you need to find a good online broker and register on the platform. Spend time to find enough information about all the available brokerage firms that provide services online in Pakistan. Read user reviews, consider the reputation of the company as well as the usability of the platform itself.
So, you can buy shares with the hope of a dividend payout, but trading derivatives, known as "CFD" is particularly popular.
A CFD is a contract between two parties whereby if the price of an underlying asset changes, one party pays the difference in price to the other.
Such a contract does not require either the transfer or even the ownership of the underlying asset - the subject of the contract is the price difference of the asset on which it is based. Thus, a contract for difference is purely speculative and based only on a contractual relationship.
Trading derivatives is often a faster way of investing on the stock market.
However, you should be aware that when investing in derivatives, you will only benefit if your predictions about the health or depreciation of the stock are correct at the time of closing the trade. Your ability to analyse the stock market is therefore very important in order to make correct predictions.
You just need to decide on the type of investment according to your aspirations. Decide for yourself whether you want to make money as quickly as possible, or whether you want to protect your capital from possible depreciation now and generate income in the future. This will affect the type of investments you choose, whether they are short-term or long-term. Depending on the type of investment, your strategy will also be different. It is also crucial that you determine the amount of your initial investment. We suggest that you start with small amounts when your trading experience is still small. Invest an amount of money that, in the event of a loss due to a bad trade, will not mean a big financial loss for you.
You should be aware that investing is a complex and risky process that depends on many factors, so even when investing in successful and financially sound companies, care should be taken.
How to buy Baidu shares in Pakistan?
To learn how to buy Baidu shares in Pakistan, you first need to register on the online platform, then fund a real account and actually buy the shares.
To practice how to buy shares, use a demo account. Let's look at how this works in detail.
Registration on the platform is very easy and does not require much technical knowledge. The procedure is standard: you will be asked for a valid email address and a complex password, which only you will know. Check the box that says "plus" the agreement with the "Terms of Use and Privacy Policy". Take the time to read this agreement.
The trading platform we have chosen is convenient in that it offers every new user a demo account. The demo account is opened automatically upon registration. What is a demo account? A demo account is a virtual account designed for trial trading.
On our platform, you can create a demo account with a virtual deposit. Once you properly complete your registration, this amount will be available in your wallet. You may use the demo account for training purposes and trial trading.
Please note that the quotes you will be using in your demo account are real. So are all the transactions you are about to make.
The only difference with a real account is that you will not pay anything out of your pocket, and therefore you will not risk any real money. Remember that you cannot withdraw and cash out money from a demo account as it is virtual!
Once you have practised enough on the demo account, and you feel ready to invest for real, you will have to activate your real account. To do this, you need to fund this account with real money, based on the minimum top-up amount set on the platform. As a rule, the starting amount is small.
You can do this easily by clicking on the 'Deposit Money' option. You will then be redirected to the payment page. Here you can transfer money to your account. You can transfer with a payment bank card, or with one of the payment systems.
How to avoid risks in investing online?
So let's summarize.
You have to realize that there are risks inherent in investing. The main one is not getting the expected profit when instead of income you suffer losses. Inflation, lack of diversification etc. also play a part.
To reduce the risks, study the stock market, keep an eye on the political and economic situation in the country. Take an interest in the company you want to invest in.
Choose a reliable online platform. In a word, keep an eye on the situation.
Explore our stock trading platform Baidu, where various analysis and trading tools are available: current company information, charting prices up or down, indicators for technical analysis, as well as trading tools such as stop-loss function, multiplier and much more.
The platform also features a chat room for interactive communication with other market players. You may post a message to the chat room using your own username, or use an alias that the system will automatically assign you when you click on the "don't show your real name" button.
Another advantage of the platform is the availability of free tutorials in the form of articles or videos. We highly recommend checking them out.
We also have a "news" tab where you can read all the latest information about listed companies.
With so many opportunities, you will definitely want to try your hand at investing, so feel free to sign up to the platform!