wendyc:

investment is like a 50-50 chance, not guaranteed, in anyway, so it's something that everyone should be very aware of. it's all about diversifying ur portfolio, if you see that every bank is making profit and u decide to just go for that, then it's a pity whoever your agent is, did not do their job well, and should be fired because the first rule in investment is looking out for the client, what is in their best interest.
secondly when u actually do diverse ur portfolio (spread it all around) if oil is not doing well, gold is doing well and so in turn the money u lose from oil will not be as bad because d return from gold will upset it, so it's a pity that in Naija, anyone can just turn around and sell stocks to others just because, ,

as for the American market, it affects the whole world in case u don't know, because, dey are all some worth connected, and that is where u real investment or management company should have experts to actually do research and be liable if possible.
i know here in the States, u are liable to some extent what type of stocks you sell to your customer, and i tell u, it's that or u lose ur license.

Investment ain't no damn 50/50 chance. if you apply the same rules that the greats (warren buffet) have been applying for donkey years then being able to weather the storm (market downturn, financial meltdown) shouldn't be a big problemo.
I remember vividly when my friends in naij where going on about having close to 50% returns on shares bought and trying to lure me in. at the time i was very sceptical because;
1) I wasn't sure about the transparency of financial reports by naij companies
2) Financial markets don't work in an exponential pattern. their are bound to be dips and trots which i wasn't sure naij was ready for being that she is still an emerging market
3) The established markets where already slowing down and it would have been very risky to just jump into an unsustainable growth return promise by the great emerging market called naij
4) The share value where overpriced and you never by shares at peak. one should always look at the history, profit reports and outlook before buying shares from a potential company. Don't just jump because the price looks attractive

If you ask me, it's probably a good time to own buy the well established power house as the market is already close to bottom but only with a view of staying for the long run rather than looking for a quick 20% return.
Always pick and do your own analysis. Their are calculations that can be used to aid judgements.
DON'T be greedy as that's the only reason why you hear of people borrowing money against less assets to fund share dealings. Remember that our parents own shares from excess money playing about in those days and the value of this shares have grown significantly all because they were in it for the long run.
No quick way to making money unless you want to gamble in this current climate

With this your latest reply it is obvious we are not on the same page. You seem not to understand the core issue I raised, sorry for expecting too much from you, my mistake.

come off it joh! u were like buying shares = kalokalo and im saying its NOT
simple

debosky
i understand ur point. Exactly why im not buying anything for now. Ndidi and her abracadabra don too much

I bought 200,000units Benue cement@N3.50k which amounted to N700,000 during their rights issue.sold the stock @N35 and made a cool profit of N6.2m.i was able to do my MBA in UK and also sponsored my wife's masters in UK too.Though i have lost over N5m in the downturn now but life is like that.There is nothing that goes up that doesn't come down.You gain sometimes,u lose sometimes.My father trained us with stocks,so it's worthwhile.
Overall,i am still buying stocks but the lesson is that buy coys with strong fundamentals like FBN,GTB,UBA,UBN etc and not yeye stocks like transcorpse,sterling,starcoms,etc THE MARKET WILL STILL BOUNCE BACK , ALSO,DONT KEEP ALL UR EGGS IN ONE BASKET,

@tkb417,

go to adult classes. (Open UNi)

U know what? I have advised that guy called Afam to do the same thing several times. Infact, I have offered him free classes online, but he is so allergic to education.  You can try if you want, but I doubt you'll make a difference.  If you insist on going ahead with your free classes, I will advise you to tread very softly because the guy might end up abusing your parents in the process.  That is not surprising however.  Afterall, what more can you expect from the village cu m nairaland idiot.

eooduyebo:

Yes, the downturn in the stockmarket has affected me seriously.  I had stock worth about N7.8Million as at Dec 2007.  I gave this stock as collateral and obtained a loan of N5 million from Diamondbank PLC. From Jan 2008 till date I have paid interest worth over 1million to Diamond bank.  And the stock I bought with the 5 million naira is worth just about N 2million while the stock I gave as collateral is now worth about 3.8million.  The Diamondbank is on my neck to pay up the money, I am confuse I do not know what to do.  Meanwhile Diamondbank charge is really weighing me down and very unreasonable. This month they will charge me N78,0000 the next month they ask me to pay N103,000.00.  I am really disturbed

What are the repercussions if you dont pay off your debt to diamond bank?

My people, this is obituary . I have read about how shares go up and down but this down is so down that I am also down. The downward trend started like a joke in April 2008. Joke joke, the thing passed my stoploss level. Even then, I wanted to sell to cut loss,  no buyers. Chei, this is TKO. I am seeing stars now. In fact, any time  my children are reciting the nursery rhyme "twinkle, twinkle little star" I feel annoyed  thinking that they are yabbing me . It is not easy. All my estimations and calculations as to the profit I was to make at the end of 2008 have become vanity. Yes, I now know practically what it means to lose money in investment. Any way, I will continue to invest in the stock market because it made me. So, cheer up my fellow investors in the stockmarket. It shall be well.

@Ndipe,

What are the repercussions if you don't pay off your debt to diamond bank?

For one, he will have to say bye bye to the stock he provided as collateral.  Depending on Naiaja's laws which I do not know, the bank might sue him to recover the balance of the loan, with possible interests and attorney's fees.

In a scenario where the laws of the land limits the extent to which a creditor may get his money back, the guy might consider defaulting on the loan and giving up his collateral if he feels it makes more sense for him financially.  One of the downside to that action will be his credit rating.  The Bank can have him blacklisted such that no other Bank will ever do business with him in the future.

A good friend in Nigeria manages one of the new generation banks in Abuja.  He told me one of his colleagues was sacked because of a situation like the above.  He managed an account for an individual who obtained a loan for about N200m with a collateral of N300m in stocks.  Unfortunately, the stocks are worth less than N100m today and the guy aint paying back.  So the Bank is left with a shortfall and the borrower reasoned that he will rather keep the money (possibly invested elsewhere) than pay back the N300m with interest.  That was purely a fianancial decision on the part of the borrower.

Tayo-D:

@tkb417,
U know what? I have advised that guy called Afam to do the same thing several times. Infact, I have offered him free classes online, but he is so allergic to education.  You can try if you want, but I doubt you'll make a difference.  If you insist on going ahead with your free classes, I will advise you to tread very softly because the guy might end up abusing your parents in the process.  That is not surprising however.  Afterall, what more can you expect from the village cu m nairaland idiot.

So, even scammers that use multiple IDs on this forum are even advising people on stocks? Wonders shall never end.

Tayo-D:

A good friend in Nigeria manages one of the new generation banks in Abuja.  He told me one of his colleagues was sacked because of a situation like the above.  He managed an account for an individual who obtained a loan for about N200m with a collateral of N300m in stocks.  Unfortunately, the stocks are worth less than N100m today and the guy aint paying back.  So the Bank is left with a shortfall and the borrower reasoned that he will rather keep the money (possibly invested elsewhere) than pay back the N300m with interest.  That was purely a fianancial decision on the part of the borrower.

The content in bold refers, forum users run for your life, this scammer has started again, this is how he defrauds people dropping names and making claims that are never substantiated while using different usernames on this forum. Once the admin finds out and bans him he quickly registers another.

Beware, there are a lot of faceless criminals on this forum with fake identities and this is one of them.

@afam or is it afam4eva?

So, even scammers that use multiple IDs on this forum are even advising people on stocks? Wonders shall never end.

This is why you have been advised by several people on this forum to go get an education.  Where did I advise anybody about stocks on this forum?  You on the other hand, trying to prove intelligent only showed your ignorance by the advise you gave.  Next time, you might just want to shut up rather than spew nonsense about what you do not know about.  I'm glad you are beginning to see yourself for who you are - the village c um nairaland idiot. Your not responding to that obviously shows you have come to peace with your status.  Long may you reign as the nairaland idiot.  For someone who actively uses two usernames on this forum while stealing the identity of his football friends online, don't you think you are in no position to accuse someone of scamming?

The content in bold refers, forum users run for your life, this scammer has started again, this is how he defrauds people dropping names and making claims that are never substantiated while using different usernames on this forum. Once the admin finds out and bans him he quickly registers another.

You might want to start by telling the forumites the people I have defrauded. When you are done with that, we will have to inform the people whose identity you stole and put online on the danger they've found themselves just because they played on the same football team with you in school.

Beware, there are a lot of faceless criminals on this forum with fake identities and this is one of them.

Mine is a very popular face known for his professionalism.  People who are smart and have followed my discussions and opinion on professional issues here on nairaland can put two and two together to confirm my identity.  You on the other hand, are nothing but a wannabe trader of inverters in Oshodi.  I know your world is upside down since Fashola destroyed your stall at the market.  What can I say, your suffering continues  !

Through out my university life, I laboured to secured my future. In march 2007 when I was about taking my final Exams, I grew envy as i watch most of those I thought how to mix business and study performing better than me financially because they have kept there money in stocks while i kept my in the banks. so I took the decision to poor my whole labour from 100level to 400level worth over 800,000 into stocks.
And now look at me. I had dream of what i will do with the money for after graduating but I am at home busy going messages for my mom. AS I postponing the sale of my stocks, the value keeps depreciating. As at last week my stocks is now worth 189,000.  
I rather loose the leftover than sale at that price. I have decided to forget the money but it is really painful.

Tayo-D:

@afam or is it afam4eva?

Do not allow desperation make you accuse an innocent man. I use just one username/ID on this forum and that is afam. I can never descend so low as to use multiple IDs on this forum (like you) especially when you are either banned or when you want to defraud people.

I may be wrong or right on an issue but I can never become a criminal that uses multiple usernames on this forum and at least you have never denied the fact that you use multiple usernames.

@afam/afam4eva,

Do not allow desperation make you accuse an innocent man. I use just one username/ID on this forum and that is afam. I can never descend so low as to use multiple IDs on this forum (like you)  especially when you are either banned or when you want to defraud people.

You cannot use multiple IDs on this forum and yet you attempted to steal the identity of an entire football team?! Please spare us the bullshit.

As for me using multiple IDs on this forum, it is nothing but a lie. For the sake of others, I'll reproduce my response to you on another thread:

At least for once on nairaland, Afam got his facts right: I am the same person who used the username TayoD (now retired), but now using the username Tayo-D on this forum. This shows one improtant point. If a dunce like Afam could readily see that, I am sure everyone else on nairaland will.

To a logical person who knows how to use his brains, the first thing to do in finding out if there was a fraud is to check if there has ever being an overlap in the use of both usernames. The facts in this case proves otherwise.  My last posting as TayoD on nairaland was on August 26, 2007.  My first posting as Tayo-D was on September 25, 2007 almost a month later.  These facts can be verified by anyone. So this attempt by Afam to sully my character is nothing but a calculated attempt to hide his ignorance of the issues at hand. For someone who has no regards for his or others' parents, and is ready and willing to have his parents ridiculed on the www, I really am not surprised by his cheap shots.

Now compare that to you this thief that actively use two usernames simultaneously.  it is on record that you have used both usernames today on nairaland.  Ole barawo.

its aint easy. . . bought 5,000 units of Oceanic bank shares worth N82,500 @ 16.50k April 2007,watch the shares grew to about N32.78K on Jan 2008 and i didn't sell,and later found out that its N22.90K around August 2008 and now N10.12K so painful and still couldn't sell.

Guys,
I posted a topic Nigerian investors and the herd factor. i would encourage us to read it. The major reason the current meltdown has affected us has always been the same reason that has always been associated with Nigerians and it is good old GREED join am with WETIN DEY REIGN FACTOR. Every tom, dick and harry went into the market for just one simple reason and that is to turn a profit overnite.

How person go talk say him go borrow money from bank(Market for short term funding) and invest same in the Stock Market (Market for long term funding). Investing in the stockmarket is like every other business. One doesn't venture into business without proper research. Abi, anybody go just commot go buy moto without checking the moto out. When person know about P-E ratio him go feel say him don sabi how to analyze stocks.

And Nigerians also like wanting something for nothing.The current meltdown is simple a correction and when the market is done with its correction only the true investors will be left standing. There is a difference between speculating and investing. Anybody way wan speculate make him go Las Vegas or play the currency market.

And for those wey dey say stockmarket investing na kalokalo. I say to u continue to bask in ur ignorance. Life itself na kalokalo.

Goodness
thank u jare. even life itself is a gamble.

Tayo-D
allow Afam. Thats his style. Ive known him to say opaks everytime
its cool man

Like most investors, am on leave from the stock exchange for now. i don't have heart attach because i ndon't have borrowed funds in the market. i have also transformed from a short term investor to a very long term investor. what else can anybody do?

Tayo-D:

@afam/afam4eva,
You cannot use multiple IDs on this forum and yet you attempted to steal the identity of an entire football team?! Please spare us the bullshit.

He that is down need fear no fall but it is still very shameful for you to drag an innocent forum member (afam4eva) into this your gross stupidity.

It shows that you are ready to even hurt innocent people in your desperation and for someone who is both a husband and a father I now really have pity for your wife and child because you are very bad influence.

Anyone that lies for any reason as far as I am concern is lesser than a pig and that is how I see you today.

the truth is , stock is the only thing people buy when they should be selling and sell when they should be buying, you must have long-range goals to keep you from being frustrated by short-range failures.

if the fundamentals have not changed, i repeat , keep buying

Well i was really worrying myself that i have lost much, but now am happy because i have not loss more than 500k though close to it, and am not paying back any loan, This is what i want to say here, Mr Charlse Soludo and Ndidi Okereke have done great, i will suggest its better to leave the stage when there's is a greater applause, its obvious, this guys are out of ideas they should just step down

Hello Mr Afam, you are the person who introduced me to a mutual fund at Ilupeju (I don't want to mention name) before you now got another Job with Diamond Bank (Oh i know you too much) you mean all those stuff you told me then were all [b][/b]lies so you knew stocks was a kalo kalo stuff and you still adviced me to buy into it, afam you no try at all

@Afam,

It shows that you are ready to even hurt innocent people in your desperation and for someone who is both a husband and a father I now really have pity for your wife and child because you are very bad influence.

This is the expected progression for a fool. I knew you'd bring my family into this. I am not surprised anyway, you went so far as to insult my parents the last time. I have too much respect for my wife, my parents and family at large for me to disrespect another's, even if such is a fool.

He that is down need fear no fall but it is still very shameful for you to drag an innocent forum member (afam4eva) into this your gross stupidity.

Keep your hypocritical shamefulness to yourself. This guy is talking about innocent people and has the guts to trefer to members of my family he knows nothing about? I tell you, your reign as nairaland idiot will know no end.

Anyone that lies for any reason as far as I am concern is lesser than a pig and that is how I see you today.

The word in bold should be concerned. Again we have to teach you english. I've always known that you are a self-loathing fool. Unlike you, I love what I see in the mirror everyday. What concerns me with your estimation of me? You think I need people to massage my ego to maintain a healthy self-esteem as you do? Go figure!

@tkb417,

allow Afam. Thats his style. Ive known him to say opaks everytime
its cool man

Why am I not surprised!! You know the Bible declares that even if a fool does not say with his mouth that he is one, he will announce himself to be a fool by the way he walks. That is Afam's testimony. Even on the www, we can all tell that he is a fool by his conduct.

@Goodness07,

And for those wey dey say stockmarket investing na kalokalo. I say to u continue to bask in ur ignorance. Life itself na kalokalo.

You dey mind Afam? Wisdom dictates that a man keeps quiet and learn when he is ignorant of an issue, but not so with Afam. I read one of his articles on nairalnad recently about elctric power and I was dumbfounded by the ignorance he displayed. And more worrying is the fact that he would never accept correction but will resort to character assassination and denigration.

@Afam,

Hello Mr Afam, you are the person who introduced me to a mutual fund at Ilupeju (I don't want to mention name) before you now got another Job with Diamond Bank (Oh i know you too much) you mean all those stuff you told me then were all [b][/b]lies so you knew stocks was a kalo kalo stuff and you still adviced me to buy into it, afam you no try at all

You want to respond to Joshcoli's accusations? Your chickens are beginning to come home to roost here on nairaland. The 419 that you are is becoming very glaring for all to see.

Joshcoli:

Hello Mr Afam, you are the person who introduced me to a mutual fund at Ilupeju (I don't want to mention name) before you now got another Job with Diamond Bank (Oh i know you too much) you mean all those stuff you told me then were all lies so you knew stocks was a kalo kalo stuff and you still adviced me to buy into it, afam you no try at all

What brand of kai kai have you been taking? I have never touched anything close to mutual fund and I have never worked in any bank not to talk of Diamond bank or Gold bank.

The name Afam is short form of Afamefuna and it is a common name in Igboland so do not hold me responsible for what a certain Afam did to you abeg.

Tayo-D:

Keep your hypocritical shamefulness to yourself.  This guy is talking about innocent people and has the guts to trefer to members of my family he knows nothing about? I tell you, your reign as nairaland idiot will  know no end.

afam4eva is innocent because you are accusing him of being the same person as afam (my own ID). Having pity on your son and your wife is not the same thing as insulting them because it beats my imagination silly to understand how they will feel having a dubious character as a father and husband. It is not fair to them and there is nothing wrong in showing empathy.

Tayo-D:

The word in bold should be concerned. Again we have to teach you english.  I've always known that you are a self-loathing fool.  Unlike you, I love what I see in the mirror everyday.  What concerns me with your estimation of me? You think I need people to massage my ego to maintain a healthy self-esteem as you do? Go figure!

Thanks for the correction. In fact teaching me english is a good thing and I will learn but don't try to teach me things like using multiple IDs, scamming people, accusing innocent people falsely etc because I will not learn them at all.

@ Goodness 07 and the other correct contributors.
Notes taken.

Come on guys, i thought this is a forum where people are supposed to contribute and speak candidly. Has it now degenerated to people hurling abuses @ each other? Let us be a little civil to each other. Remember this is the WWW.

Joshcoli:

Well i was really worrying myself that i have lost much, but now am happy because i have not loss more than 500k though close to it, and am not paying back any loan, This is what i want to say here, Mr Charlse Soludo and Ndidi Okereke have done great, i will suggest its better to leave the stage when there's is a greater applause, its obvious, this guys are out of ideas they should just step down

@Joshcoli
Pls make u know beef dis people. No be dem cos the meltdown. Na greed cos am. Abi u hear say the federal reserve governor 4 U.S step down or the British equivalent. It doesn't work like dat. No be politics be dis. Even our politicians sef wen dem mess up na rope dem dey take drag dem commot

The principal rule about investing in stocks is don't invest more than you can afford to lose. How can people be investing a huge chunk of their savings or even borrowing money to invest? Even by the purportedly lax lending standards in the West, I'll be astonished if a bank lent an ordinary individual money to invest in the market.

Like any bubble, once every Tom,Dick and Harry is interested in investing, you should know the market is peaking. I believe it was Rockefeller that said he knew trouble was brewing when his shoe shiner started talking about investing in the stock market and he took the prescient decision to get out before the 1929 crash.

It's a learning process, the pain caused by the losses will teach Nigerians about the downside risks and help check future bubbles . . . . . until the next lot of suckers.

4 Play:

The principal rule about investing in stocks is don't invest more than you can afford to lose. How can people be investing a huge chunk of their savings or even borrowing money to invest? Even by the purportedly lax lending standards in the West, I'll be astonished if a bank lent an ordinary individual money to invest in the market.

Like any bubble, once every Tom,privates and Harry is interested in investing, you should know the market is peaking. I believe it was Rockefeller that said he knew trouble was brewing when his shoe shiner started talking about investing in the stock market and he took the prescient decision to get out before the 1929 crash.

It's a learning process, the pain caused by the losses will teach Nigerians about the downside risks and help check future bubbles . . . . . until the next lot of suckers.

Site wont let you write the word D I C K LMAO
So sorry I will behave now

4 Play:

The principal rule about investing in stocks is don't invest more than you can afford to lose. How can people be investing a huge chunk of their savings or even borrowing money to invest? Even by the purportedly lax lending standards in the West, I'll be astonished if a bank lent an ordinary individual money to invest in the market.
Like any bubble, once every Tom,privates and Harry is interested in investing, you should know the market is peaking. I believe it was   Rockefeller that said he knew trouble was brewing when his shoe shiner started talking about investing in the stock market and he took the prescient decision to get out before the 1929 crash.

It's a learning process, the pain caused by the losses will teach Nigerians about the downside risks and help check future bubbles . . . .  . until the next lot of suckers. 

Actually, it was common in the USA to borrow money from banks and invest in the stock market, during the tech bubble. It's called "borrowing on margin." http://www.sec.gov/investor/pubs/margin.htm

It's very risky, and a lot of people got burned in the process. I contemplated, and almost borrowed money to invest in stocks that I read would increase in value, but a former roommate cautioned me. It was a humbling experience for me.

Ndipe:

Actually, it was common in the USA to borrow money from banks and invest in the stock market, during the tech bubble. It's called "borrowing on margin." http://www.sec.gov/investor/pubs/margin.htm

It's very risky, and a lot of people got burned in the process. I contemplated, and almost borrowed money to invest in stocks that I read would increase in value, but a former roommate cautioned me. It was a humbling experience for me.

Margin trading isn't the same as what was described on this thread, ordinary individuals borrowing money from banks to invest in the stock market. At the height of the boom, would your retail banks in the US lend you money to trade stocks? You can always open an online brokerage account and make whatever gambles you want , but you can't borrow from your banks for the same purpose.

4 Play:

The principal rule about investing in stocks is don't invest more than you can afford to lose. How can people be investing a huge chunk of their savings or even borrowing money to invest? Even by the purportedly lax lending standards in the West, I'll be astonished if a bank lent an ordinary individual money to invest in the market.

Like any bubble, once every Tom,privates and Harry is interested in investing, you should know the market is peaking. I believe it was   Rockefeller that said he knew trouble was brewing when his shoe shiner started talking about investing in the stock market and he took the prescient decision to get out before the 1929 crash.

It's a learning process, the pain caused by the losses will teach Nigerians about the downside risks and help check future bubbles . . . .  . until the next lot of suckers.  

All u have said is rite. But i must beg to disagree wit u on the issue of investing. U don't invest money u can afford to lose. U invest money dat u will be needing in future. I guess u meant dat one can speculate wit money he/she can afford to lose. Dat was wat must people did. 90% of the people dat entered the capital market were speculators and had no knowledge of wat dey were getting into.

4 Play:

Margin trading isn't the same as what was described on this thread, ordinary individuals borrowing money from banks to invest in the stock market. At the height of the boom, would your retail banks in the US lend you money to trade stocks? You can always open an online brokerage account and make whatever gambles you want , but you can't borrow from your banks for the same purpose.   

I am telling you that during the dotcom boom, it was still possible to borrow money from the bank and invest in stocks. You might not necessarily tell them of your intentions to do so, but then again, even if you were approved for a loan, and you had a collateral, tell me, what would compell them to withdraw your loan request at the 11th hour?