The actual trading process...questions

[Geoff]

Let's assume you have your bank accounts in place. One in Dinar, one in USD. You're ready to play when the doors open at the ISX. I am by no means a seasoned investor. I'm trying to get my brain wrapped around all this. so here are my concerns.

Currently the ISX is run from a makeshift trading floor in what was a small restaurant in downtown Baghdad. No computers. They are using cell phones, pen and paper, and a board where prices are written with a marker. Obviously, this will have to be upgraded before the ISX opens to outsiders. To what extent?...anybody's guess. I have read at least one article stating that the ISX is years away from electronic/online trading.

Trading is all over the place with some of these stocks. Big swings. Baghdad bank goes from .95 to 11.50...wow. The inevitable big selloff can drive it back down again. This is happening within minutes. It would seem to me that you'd have to have somebody right there on the floor, with buy/sell instructions to have a shot at making some good $$. Our investments in the ISX will be microscopic compared to what the big boys will be laying down. They will have their people on the ground, in realtime. I don't like daytrading, but I think the environment at the ISX is like that now, and will really go crazy when it opens to the outside. It doesn't seem to me to be a buy-and-hold atmosphere. I could be wrong. Maybe getting in low and holding steady would be a good course to take. But you know that fortunes will be made in the opening hours as these stocks are bought and sold. It sure would be nice to click on my ISX software, see realtime quotes, and click buy and sell all day. But that isn't going to happen.

So, how the heck are we supposed to get in on the action and conduct trades in anything even close to realtime, if at all? The more I think about the logistics of all this, the more inclined I am to pick what I think are the best stocks, buy as low as possible at the open and sit. And wait. And hope. Someone mentioned somewhere that it would be good opportunity for someone to open a brokerage over there for us little guys. Anyone hear anything more about that?

This is fun, fascinating, and frustrating all at the same time, ain't it? :)

[fsm75]

Well said Geoff! Well said!

[Blake]

Let's assume you have your bank accounts in place. One in Dinar, one in USD. You're ready to play when the doors open at the ISX. I am by no means a seasoned investor. I'm trying to get my brain wrapped around all this. so here are my concerns.

Currently the ISX is run from a makeshift trading floor in what was a small restaurant in downtown Baghdad. No computers. They are using cell phones, pen and paper, and a board where prices are written with a marker. Obviously, this will have to be upgraded before the ISX opens to outsiders. To what extent?...anybody's guess. I have read at least one article stating that the ISX is years away from electronic/online trading.

Trading is all over the place with some of these stocks. Big swings. Baghdad bank goes from .95 to 11.50...wow. The inevitable big selloff can drive it back down again. This is happening within minutes. It would seem to me that you'd have to have somebody right there on the floor, with buy/sell instructions to have a shot at making some good $$. Our investments in the ISX will be microscopic compared to what the big boys will be laying down. They will have their people on the ground, in realtime. I don't like daytrading, but I think the environment at the ISX is like that now, and will really go crazy when it opens to the outside. It doesn't seem to me to be a buy-and-hold atmosphere. I could be wrong. Maybe getting in low and holding steady would be a good course to take. But you know that fortunes will be made in the opening hours as these stocks are bought and sold. It sure would be nice to click on my ISX software, see realtime quotes, and click buy and sell all day. But that isn't going to happen.

So, how the heck are we supposed to get in on the action and conduct trades in anything even close to realtime, if at all? The more I think about the logistics of all this, the more inclined I am to pick what I think are the best stocks, buy as low as possible at the open and sit. And wait. And hope. Someone mentioned somewhere that it would be good opportunity for someone to open a brokerage over there for us little guys. Anyone hear anything more about that?

This is fun, fascinating, and frustrating all at the same time, ain't it? :)Pretty much my sentiments exactly.

Geoff,
Could you dig up that "one article stating that the ISX is years away from electronic/online trading" and post a link?? I'd like to take a look at it.

[Geoff]

Blake,

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2004/07/19/MNGFE7NSET1.DTL

[Geoff]

There was another article someplace, but it was pretty much redundant.

[fsm75]

Now that I think about it, isn't this a long- haul investment that we would just let sit. They are so under-valued at this point the only place to go is up. I would consider setting a goal and getting out when that goal is met. Greed could bankrupt you.

[heather]

Ok.. question ..in reading that artical I found this paragraph :

In a move that drew strong criticism from some Iraqi businessmen, U.S. officials pushed through last fall Iraq's first law allowing full investment by foreigners in all sectors other than oil.

So what's the deal with us not being able to invest now? When the artical says they pushe dit through last fal.. am I missing something?

[Marilyn]

Although we are allowed by law to invest, the ISX is just not ready for us yet. Last I heard they are translating their forms into english. We had to create our own forms at the Bank, based on what they told us to say, in order to open the accounts. They said they would notify us by email once it opened to foreign investment.

I think Tony said it would be another week...

[Geoff]

Now that I think about it, isn't this a long- haul investment that we would just let sit. They are so under-valued at this point the only place to go is up. I would consider setting a goal and getting out when that goal is met. Greed could bankrupt you.

I agree with what you are saying, as it applies to the value of the dinar itself. Some feel that investing in the ISX has the potential to increase your dinar exponentially. The idea is to have a bundle of dinar on hand when the FOREX opens, whenever that happens. A successful run investing in the ISX could generate a lot of dinar, for a lot less $$ than you'd spend if you were buying them outright. There are way too many unanswered questions about the ISX at this time. Knowing what I know now (which ain't much) if I had say, $2000 right now, and knew I wouldn't have more to spend later...I'd just buy the dinar while it's available and be done with it. I think holding the dinar for the long term is wise.

[Blake]

Blake,

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2004/07/19/MNGFE7NSET1.DTLGeoff,
I think the article means that internet trading is years away, but he didn't mean that electronic trading was still years away as well.

"With no electronic brokerage system in Iraq, and Internet trading still years away, traders were armed with only the basics: white-board markers, calculators and cell phones."
In conjunction with everything else I read discussing an impending move to an electronic system, I think the ISX will be moved to an electronic system very shortly. It would almost have to be electronic for foreign investors to get in on it.

Internet trading would be ideal, but hopefully they offer a medium that allows foreign investors a way to view the market prices in Real-Time, and reliable telephone communication with our brokers for fast buying/selling, much like the NYSE was before true "internet trading" was actually available.

[heather]

Thanks Marilyn ,I kind thought the same thing you just reiterated (sp) to me I just needed to hear someone else say the same thing i was thinking

[Geoff]

Geoff,
I think the article means that internet trading is years away, but he didn't mean that electronic trading was still years away as well.


In conjunction with everything else I read discussing an impending move to an electronic system, I think the ISX will be moved to an electronic system very shortly. It would almost have to be electronic for foreign investors to get in on it.

Internet trading would be ideal, but hopefully they offer a medium that allows foreign investors a way to view the market prices in Real-Time, and reliable telephone communication with our brokers for fast buying/selling, much like the NYSE was before true "internet trading" was actually available.

I'm sure there will be some sort of electronic means for trading. The form that it takes is what I wonder about. As you said, hopefully it will be a system that we little folks can utilize. That it will be set up for the big investors is a given, I think...but I don't know how much consideration will be given to us, at least at the outset. Uncharted territory...very interesting.