I Need Advice On How To Start Dealing In Stock

Hi all! Please I desperately need candid advice on how to start trading in stocks in the NSE.

I just inherited some shares worth about N750k in Union Bank. am thinkin of selling them off to start real stock trading and i aint got a clue on how to go about it.

Please I need suggestions from anyone and everyone. Holla back.

If you don't know what to do with the shares, then please just hold them. [url=http://en.wikipedia.org/wiki/Buy_and_holdBuy and hold]Buy and hold[/url] is the best investment strategy, because each time you trade, you have to pay a hefty commission. So just be patient and hold it.

When you need the money to start a serious business, you will be glad to have so much capital at hand.

hi friend,

do not sell it.

i know you must have heard of successdigest extra. get hold of that magazine, there are great tips there on how you can make it trading stocks.

lay your hands on it, you will never regret it.

I have no knowledege of stocks, but i wil recommend you to successdigest extra, ask your newspaper vendor about it and get one, it is N100 only.

cheers,
blog expert

Hi tipsy!
Don't get tipsy like Chingy and drink your inheritance away man(Just kiddin )
Why don't you buy into the discovery fund? It's a Mutual fund that's being floated by ARM and it has performed quite well over time. This year alone, since January, the fund has done about 52% till now. This means that if you had put N1m in January, then by now you money would be worth well over N1.5 m. The fund has also been consistent in payment of dividends since 2003. There is a proposed divdend payout of N6.80 for their 2006 year end.
If you along with any1 else wants more information about this fund, please feel free to send a mail to aquasteez@yahoo.com.

P.S: There's also another mutual fund out called the Agressive growth investment. The real difference between this and the Discovery fund is the returns given. The AGI has done 83% since January. The reason for this is in it's composition.

I suggest u keep d stocks for now, Union Bank is presently doing good @ N40.05 / share

Am not sure of discovery fund, etc , From experience, stocks in the nigerian capital market (which has seen some bullish trading since sometime in 2003) will do. Investing & trading in stocks has been great this year (if u hav d right stocks)

If in any case you still want to trade, you can wait until there is a blue chip or stock with high profit potential around the corner - so you can sell and buy them without wasting time or losing out as decisions to buy/sell must be made as fast as possible in the market.

Remember that stocks are also good as collateral for loans, etc, if u hav a business idea you want to explore.

Hope this helps

Hi, it depends on how u want to trade. do u want to trade in the primary or secondary market. primary market is when you buy from public offers. Like what seun said, if you have big money you can invest and hold your investment for a long time, but there are factors involved like you have to be sure that the company you are investing in is going to be very profitable after a very long time. the disadvantage of this market is that when u buy from the public offer you are not the "legal" owner of the shares until you have your share certificate, and when u get it selling is not such an easy process as you have to convert you certificate first. this usually takes long depending on the registrar.

But if you want to make money easily and fast ( not so fast - but fast) you can invest in the secodary market, meaning you can buy from a stock broker (people are ignorant about stock brokers that's y they say they charge big money, well a good stock broker will only charge you 2.5% when u make profits in order words when you sell your shares) that's not much considering that they manage ur portfolio for you.

Now down to investing: the best companies to invest are the small cap stocks - that means stocks that have high trading volumes but are less than 10 or 5 naira. These stocks have the potential to grow a 100% more than the stocks that are 30-60 naira. Simple logic: it is easier for you to increase to 4 from 2 than for you to increase to 60 from 30. both are still 100% increase. I have facts to prove this. Secondly if you have 100k and u buy a stock worth 60 naira you can only buy 1666.67 volumes of that share, but if you have 100k and you buy a stock worth 3 naira you can buy 33,333.33 volumes of that share. if the later increases by 3 naira and the former increases by 3 naira, tell me from your own logic which increased by 100% and which made more money for you. This is the secret that lots of NIGERIAN are not aware of in the stock market - they mostly buy BIG NAMES they forget that for you to make money with the BIG NAMES you have to play REAL BIG TOO.

Well i can still give u more info, hope this enlightened you and all nairalanders who are stock traders and who want to start trading stocks.

Hello ugochi can i get your contact, im impressed with your explanation. I want to trade on stock too. which is really better is it buy and selling stocks when it sales high or keeping your stocks?

Hello its Gochi.
Well, if you are talking about buying in secondary market you have to buy low and sell when it goes up. but there are several factors like i have explained earlier. you look at "small cap" stocks. my friend the truth is this: dont be moved by BIG NAMES everybody will say it is a BIG COMPANY so it is good to buy, have u asked "everybody" why have they not made millions with their little investments.

EG. i invested 240k 4months ago on WAPIC in the secondary market, right now it has grown over 400% i'm not kidding, that time it was a "small cap" stock and people did not look at it but now people are looking at it and are rushing to buy so the price is on the increase. but i cant keep waiting until it goes hay wire coz the market is volatile. i can decide to sell now or sell later but the point is this if i decide to sell now i'll make close to 1million bucks and since i have info about the market i will look for another small cap stock to put my close to 1 million bucks into which will give me another 300 - 400% gain.

you see be BIG STOCKS do not have that potential, they only rise slowly. EG. i studied a stock this month - unbelievable in 2 weeks they grew by 200% i'm not kidding. I PUT MY HAND ON MY HEAD AND SAID I SHOULD HAVE INVESTED EARLIER, BUT NOT TOO LATE FOR ME THEY ARE STILL LIKE 3 NAIRA. I intend to buy next week before they hit 5 naira.


So its up to you to buy and sell or keep your stocks but keeping you stocks is not always the best option.

sorry forgot to give my phone: this is it: 2348024009195 and this is my yahoo im gochi_2k

gochi, thanks so much for that explanation on stocks. pls i want to know more about stocks. How can u be of help?

I have explained a lot in my earlier posts. I have a few questions for you: do you have internet access readily at your disposal? Do you know any stock broker?

Now tell me, what help do u need exactly.

As for me i have stead internet access and i have a broker i met through a friend. invested little for a start. but now i want to invest more. the other broker bought UBA, First bank and Union bank shares. you know of any one i can invest now.

gochi

please i have internet acess and a computer but not a stock broker can u please explain all it takes to get one

@evergie
if u r looking 4 long time investment firstbank,uba &union bank r good options dats if u v alot of money 2 invest like 5millon & above (u can still make money with less but not much) but if u dont penny stocks r real goldmine 2 invest in eg josbrew was less than 2naira but its over 8 naira now (about 300%growth) but betwwen that time zenith bank only grew from about 40 naira to 63 naira (only 50%growth)

assuming we both had a million naira each and u bought 25 000 zenith bank shares(40naira per share) while i bought 400 000 josbrew shares(@2.50naira per share) my share value would be worth 3.6million while your would be worth only 1.56 million but we both started with a million each. now thats thinking smart

so if u wish 2 do short time trading like 2 to 5 month ur best buys r penny stocks

@atiku07
i;m online now i've added u to my messenger lets talk

gochi,

can u recommend good stock brokers? my stockbroker is an idiot.

gochi
pls advise me, i hv zenith bank shares. can i sell them now?, as it does appeares that the bank stocks are going down

Izidor, when last did you check the zenithbank share price, it's going up not down!
Gochi, I also would like to be introduced to a new broker please, if you know any good one in Lagos, please letme know. My email addy is atunsmuinat77@yahoo.com

gochi, are u online

what do you guys think about First bank shares?

izidor,

If you want to sell your zenith shares, i can buy them right now.

Kemmy,

i know, as today zenith is 63.95. im just trying to be mindful not to over speculate as i did for oceanic before it start going down.

Slay,

i just want to know if it stll has prospect for further growth. and if it does, there will be no point of selling it now.so you can feed on the info.

this is not the time to enter zenith, for holders it is the exit point cos profit takers will soon step in.
run now and renter later

i dont know when u bought your zenith bank, but i think you can sell now. but if u still want to wait u can but u have to wait a long time. waiting,


First bank is good but do u have HUGE FUNDS to invest in it and to invest for a VERY LONG TIME, else go for small cap stocks. u guys can call me.


One last piece of info: a good stock broker to me must be IT driven. I must be able to see my portfolio on his account from his website apart from cscsnigeria.

i will give u guys more advice tomorow i have to go home else i'll sleep in my office today

@gochi
please dont sleep in the office ooooo, 2morrow is another day

hi gochi,

Thanks for all the info about penny stock. can I add you to my Yahoo IM? Because need to discuss some more with you. What penny stocks would you advise me to buy now, if you were to be my broker? Thanks buddy

Hello everyone, i must tell you i'm impressed with the contributions made so far to this topic. Ugochi has displayed an amazing knowledge of stocks and dazzled pratically everyone who read his piece. Gochi, be sure to know that I'll contact you and add you to my yahoo messenger.

First, let me ask the initiator of the topic. have you done the necessary documentation required to enable you sell the shares,because obviously having inherited the shares they would be in the name of the deceased person.

Al I'm trying to say is that should you decide to sell the shares, you would have to effect a change in name from that of the deceased person to your own name wither at the company's registrars (if it is still in share certificate form) or at the CSCS through your stockbrokers (if the shares are in dematerialized form)

You all have a great day.

Dibosa187, Thanks for the very good advice. It is important you legalise the transfer of the shares through the adminstrator.

All who are interested in shares, please maintain a simple spreadsheet to ensure you are able to monitor your stocks and follow up with your dividends. If you don't have the time or energy to maintain this personal database, please I beg you with the mercies of God don't bother to go into the capital market.

Finally, I have been to three major stock broking firms and my conclusion is that all stock brokers are the same , you have to push and shove and cajole them in order to get anything done. The lesson is "Your investment is in your hands monitor and guard them jealously" NEVER leave anything to your stock broker. ( I apologise to all stock brokers in the house for being blunt)

Hi all,

You can visit this site http://www.stockmarketnigeria.com/ to learn the basics of the Stock Market. The materials is free and very educating.

Also, you can monitor your stocks online free of charge @ http://www.investordelight.com/

Enjoy yourself and change your life.

Cheers