In this article I am going to give you vital lessons on stock trading, but I must warn you though, this is for serious minded people that want to have access to fortunes in the stock’s market. If you’re at all inexperienced at this sort of thing, you will probably find this article most refreshing and rewarding, happy reading.
Stock trading is an aspect of stock investment which in my belief has been greatly overlooked, undermined and misunderstood. The reasons are not farfetched; I’ll get to that in a moment but first let’s attempt to throw light to this “well of gold”.
I want to show you what you may be missing by not been actively involved in stock trading with statistics that may stagger your ignorance. Do you know?
– That the Value of the Nigerian capital Market is well over N12 trillion.
– That the current (2008) budget of the Federal Republic of Nigeria is less than N3 trillion.
– By implication, the Nigerian Capital Market (NSE) is Four times the size of what Nigeria thrives on yearly.
– That Nigerian Stocks Market is ranked as one of the highest stock market with the highest returns on investment worldwide.
– That only 10% of active investors make over 90% (N9.18 trillion) of the N12 trillion that exchange hands daily.
– That the Nigeria Stock Market holds the greatest opportunity for every Nigerian residing in the country and in the Diaspora to create wealth.
– These 10% active investors are stock traders.
If you want to get on the train of stock trading, there are some basics you have to grapple with in order for you to perform excellently.
There are two markets where investors do business in the capital market, namely primary and secondary market. The vast majority of stock investors (90%) do their business in the primary market, why? Basically because it is an all comers market, there are no restrictions since you can do business without necessarily depending on the famed stockbrokers. At the primary market you can easily buy shares across the counter, all you need to do is pick up a form, fill your data into it and pronto you are done, in another word, some level of ignorance of how the system works can be tolerated, but not so with the secondary market, it is highly regulated by the stakeholders of the Capital market which include The Nigerian Stock Exchange, Security and Exchange Commission and Central Security Clearing System Ltd.
For starters, you need a stock trading account with the CSCS Ltd to enable you trade at the floor of the exchange; this can be easily facilitated by a currently registered stock broking firm, Trading in the secondary market is done via stock brokers. You are charged commissions for every buy and sell that is done on their behalf.
A CURRENT ACCOUNT WITH ANY BANK
A current account to facilitate your trading, when sales is made in your favour, you need a current account where you can easily pay your crossed checks into, unlike savings account that is not designed to accommodate checks.
A DOMICILIARY ACCOUNT FOR NIGERIANS IN DIASPORA
For Nigerians who resides abroad who are interested trading in the capital market, they can also actively participate. A domiciliary account can be processed for them where deposit of sales can facilitated for them; also, this account enables them to transfer money to Nigeria easily for trading purposes. My organization WINNING ATTITUDE WEALTH IDEAS ENT as part of our array of investment services handles stock portfolios for Nigerian investors living abroad.