WeNigerDelta:


I think I understand what JIJO means, it's pretty much what we call trading the MOMO, follow the trend of a stock for a quick 5, 10, 15 or 20% profit, it's also called scalping.
Short selling on the other hand is the opposite of a long position. In a long position you want the stock to go up and you make money when that happens. Short is the reverse, you want the stock to go down and make money when it does...

NuttyChoky:


No Nigerian broker currently does short-selling because the SEC expressly forbids it...

Even order types are very limited (<10)

WeNigerDelta:


I think I understand what JIJO means, it's pretty much what we call trading the MOMO, follow the trend of a stock for a quick 5, 10, 15 or 20% profit, it's also called scalping.
Short selling on the other hand is the opposite of a long position. In a long position you want the stock to go up and you make money when that happens. Short is the reverse, you want the stock to go down and make money when it does...

courage89:


Long position simply means you're holding the equity for a very long time. Short position means the reverse, you're holding the equity for a short duration. Short duration may be for one day, 3 months or 6 months depending on one's definition. Shorting a stock in principle is the same as JIJO. Objectives, strategies and practice of "short" differs when comparing developed economies with emerging markets. This is because developed economies have advanced financial instruments such as derivatives; options, swap, forwards that makes shorting an asset more apparent, effective and efficient. While these instruments are not available in our market.

courage89:


Long position simply means you're holding the equity for a very long time. Short position means the reverse, you're holding the equity for a short duration. Short duration may be for one day, 3 months or 6 months depending on one's definition. Shorting a stock in principle is the same as JIJO. Objectives, strategies and practice of "short" differs when comparing developed economies with emerging markets. This is because developed economies have advanced financial instruments such as derivatives; options, swap, forwards that makes shorting an asset more apparent, effective and efficient. While these instruments are not available in our market.

duni04:

Oga stop confusing people. You can go short on a stock for 6 months or even more. Shorting means buying a stock in anticipation of falling price. I can borrow fbnh shares from my broker at N3.7 in anticipation of the price falling to N3.2, sell at a cheaper price after the price would have plummethed and then return the same quantity of units to my broker with profit. And FYI I know brokers in Nigeria that give stocks to people to short and retrieve them back after the prices would have fallen.

courage89:


Long position simply means you're holding the equity for a very long time. Short position means the reverse, you're holding the equity for a short duration. Short duration may be for one day, 3 months or 6 months depending on one's definition. Shorting a stock in principle is the same as JIJO. Objectives, strategies and practice of "short" differs when comparing developed economies with emerging markets. This is because developed economies have advanced financial instruments such as derivatives; options, swap, forwards that makes shorting an asset more apparent, effective and efficient. While these instruments are not available in our market.

duni04:

Oga stop confusing people. You can go short on a stock for 6 months or even more. Shorting means buying a stock in anticipation of falling price. I can borrow fbnh shares from my broker at N3.7 in anticipation of the price falling to N3.2, sell at a cheaper price after the price would have plummethed and then return the same quantity of units I borrowed to my broker with profit. And FYI I know brokers in Nigeria that give stocks to people to short and retrieve them back after the prices would have fallen.

Godisfaithful:
http://www.unitedcapitalplcgroup.com/wp-content/uploads/2016/01/NIGERIA-2016-OUTLOOK-A-Slippery-Path-To-Recovery.pdf


Very good report!

jarkbauer:



what do u mean by this. I bought a stock recently and sold same day. Made 12%

WeNigerDelta:


Thanks for your reply chairman....Please can you give me a list of brokers that let folks short stocks....I will really appreciate it, you can pm me it you don't want to make it public.
That's been the only the holding me back from trading the NSE...

wizdonnel:


Nice one Chief... It would really be great if you share a list of Nigerian brokers that offer Margin Facilities and short selling here.

More Gizzards to our Chickens This week!

NuttyChoky:


That is not short selling, that is called day trading.

Short selling is when you borrow stocks from you broker and sell them, you are betting that the stock price will go down (not up) and then you can buy them back cheaper and return to the broker while you keep your profit.

RichYoungRuler:

hi, pls explain "go down" n not up e.g I borrow 100 units of a N1 stock. It goes down to 50k, how does 1 make profit when price has gone down when u r selling?
If you are a broker here in Nigeria would u let someone give u devalued shares back n d person takes away profit
If you say margin facility fine, that's as simple as ur broker lending u money to trade in hopes that u make money but if you lose u still return his money back with interest.

Naijainvestor:


NuttyChoky is correct. This is how short selling works: You do your analysis and you think that the price of 7 UP will go down to N155 in 2 weeks time but it is selling for N165 now. You ask your broker to lend you 1000 share of 7UP and he does and you sell it for N165,000 then in 2 weeks when the price falls to N155, you buy back 1000 shares at N155,000 and give it back to the broker, now you have made a gain of N10,000 for selling a stock you did not own in the first place. This is possible because stocks are held in street names in the USA without any share certificates. The problem here is that if the 7UP share went up rather than down, you will make a loss that is why you are required to post margin when selling short.
The advantage is that it adds liquidity to the market but the disadvantage is that it increases risk and tends to depress the price even further. It is different from trading options although you can achieve the same result by buying a call option or buying a put option if you are long the position.
Let me know if you need additional explanation

abs4uall2000:
Any suggestions as regards GTB? Is it good to go in now?

iyb:

i have loaded gtb and zenith if they release their results and its good the stock will go up and besides it is a good stock for long term
i am also thinking of oando but i dey fear this stock i dont want to bleed like i did with fbnh

NuttyChoky:
Morning House,

Please who knows of any Nigerian broker that does Stop Loss Orders?

* I'm trying to reduce how much time I spend monitoring the market.

ogoo4real:
All hands refreshing NSE website for results.... Chaii

feelamong:


Every broker does this na..

ALL THEY HAVE TO DO IS TO PUT IN YOUR SELLING PRICE N THEIR TRADING MACHINE..

once it gets to that price it goes on sale...but pray that the day it gets there is not the day the stock is on offer and there are no bids..