• Knowledge Via Technology

    How To Invest or Trade With The Nigerian Stock Exchange Market

    Swing trading which is otherwise referred to as short-term trading, with respect to the Nigerian stock market is somewhat advisable to Nigerians wanting to trade or invest from the comfort of their homes. 

    You can indeed make lots of money from speculating the market possible movement more quickly than you can ever imagine.

    You can possibly acquire some units of stocks, for instance worth N50,000 and  make profits by selling it in the long or short run by taking the advantage to price fluctuations.

    Thus, you can purchase some stock units worth N50,000 while watching your money deplete into any amount within the next few weeks. 

    As such, this is profit or loss trade.

     However, if you are well informed regarding the strategies of investing in the Nigerian stock exchange market or the global stock market in general, minimizing the losses and maximizing your profits will be assured but not guaranteed and you will be able to make cool and quick cash.

    While some traders prefer trading on high cap stocks i.e expensive stocks, others rely on trading the penny stocks i.e cheaper stocks. The fact remains that you can make money if you are capable enough by being well informed and abandoning the habit of greed in trading in the Nigerian stock market.

    How  To Start Investing In The Nigerian Stock Exchange Market

    There are three major tools you require to successfully start trading. Here we go! 

    1. Find a  Stock Broker/Brokerage Company of Your Choice.
    A Brokerage firm or a stock brokers here serves as an intermediary or middlemen that connects you to the company you want to buy stock from, or the stock market at large. They manage the most difficult parts of your trading transactions and you pay them
    commissions for their efforts(don't worry you won't even feel you pay them anything if profit is attained) .

    Duties of the Stock Broker:

    Your Brokers will help you open and launch your Central Securities Clearing System(CSCS) account this will allow you to purchase stocks at the Nigerian Stock Exchange (NSE),  as you might not be able to purchase stocks directly on your own, so you need your stock broking firm to help you execute your trade.

    If you are dealing directly with the primary market, i.e the stock that the company advertises directly, while filling the forms, it is a must for you to state the name of your stock broker with your CSCS account number you registered through your broker.  

    You can see, it is mandatory for you to have a stock broker even if you are buying from the primary market.
    In the case of the secondary market, you need to instruct or inform your stock broker about your prefered stock, and will then go to the stock market to purchase your stock on your behalf anytime.

    2. Open an Investor’s Account With A Stock Broker.
    The instance you decide to invest in the Stock market, you have to admit you are now an investor. This is why you need an investor’s account. An investor’s account is usually opened for you together with a CSCS account through which your stocks would be stored in.

     It is automatically opened for you through your stock broker so theres no hassle to open it on your own. While your transactions being processed on your behalf would then be noted in you name to your investor’s account.
    3. Capital To Trade or Invest With.
    As someone struggling to fit into the world of business i believe we have no time to waste here introducing why you need a Capital to trade and besides, there is no technicality involved in explaining that.

     Depending on the volume of units you intend to  invest or more appropriately designate it as the amount of risks you are ready to take, you will require a trading capital just much enough for your trading options.

    NOTE: In any wise investment, gaining appropriate knowledge is your power in this business and that is what drives you into research. Make suer you adopt the priceless strategy that says ''Buy the rumours and sell the news''.
    Making Money With The Nigerian Stock Exchange
    The game is simple! Spot a good commodity in the market, predict accurately it’s movement, buy, and sell at the right time.

    Let’s do some maths here a little, for example you purchased Canbury  shares worth N50,000 at the rate of 1.00 kobo per unit of share, if by next week the price fluctuations appreciates up to 4 kobo per unit share, you’ve made 4 times or 400% your money when you sell,  this will amount to N50,000 x 4 = N200,000
    With this trade, you will be required to  pay an overall commission of about N2000 and take your profit of N130,000 from this trade.

    Drop a comment below for any question regarding the Nigerian stock exchange.

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