Dear Friend,
In this article I am going to give you vital lessons on stock trading, but I must warn you that this is for serious people who want access to fortunes in the stock market. If you’re new to this sort of thing, you’ll probably find this article very refreshing and rewarding, happy reading.
Stock trading is one aspect of stock investing that, in my opinion, has been largely overlooked, undermined and misunderstood. The reasons are not far-fetched; I’ll get to that in a bit, but first let’s try to shed some light on this “gold pot.”
I want to show you what you can miss by not being actively involved in stock trading with statistics that may astonish your ignorance. Know?
– That the value of the Nigerian capital market is well over 12 trillion naira.
– 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 annually.
– That Nigerian stock market is ranked as one of the highest stock markets with the highest returns on investment worldwide.
– That only 10% of active investors earn more than 90% (9.18 trillion naira) of the 12 trillion naira traded daily.
– That the Nigerian Stock Market offers the greatest opportunity for all Nigerians residing in the country and in the diaspora to create wealth.
– These 10% of active investors are stock traders.
If you want to jump on the stock trading bandwagon, there are some basics you need to deal with in order for it to perform great.
SECONDARY MARKET
There are two markets in which investors do business in the capital market, namely the primary and the secondary market. The vast majority of stock investors (90%) do their business in the primary market, why? Basically because it is a market for all comers, there are no restrictions as you can do business without necessarily depending on famous stockbrokers. In the primary market you can easily buy shares over the counter, all you need to do is pick up a form, fill in your details and you’re done, in other words some level of ignorance about how the system works can be tolerated but not so with the secondary market, it is highly regulated by capital market stakeholders including the Nigerian Stock Exchange, Securities and Exchange Commission and Central Security Clearing System Ltd.
OPERATIONS ACCOUNT
To get started, you need a share trading account with CSCS Ltd to enable you to trade on the exchange floor; this can easily be facilitated by a currently registered stock brokerage firm. Secondary market trading is done through stockbrokers. You are charged commissions for every purchase and sale made on your behalf.
A CURRENT ACCOUNT WITH ANY BANK
A checking account to facilitate your trade, when sales are made in your favor, you need a checking account where you can easily pay your crossed checks, unlike the savings account which is not designed to accommodate checks.
A HOME ACCOUNT FOR NIGERIANS IN DIASPORA
Nigerians residing abroad who are interested in trading in the capital market, can also actively participate. They can process a domiciliary account where they can facilitate the deposit of sales; Furthermore, this account allows them to easily transfer money to Nigeria for business purposes. My organization WINNING ATTITUDE WEALTH IDEAS ENT, as part of our range of investment services, manages equity portfolios for Nigerian investors living abroad.