Does any one have experience of stock trading in Nigeria as well as any other foreign Stock exchange like London Stock Exchange or US Stock Exchange etc.

Do you think there is any advantage in having a foreign stock broking account for someone resident in Nigeria. ?
What are this advantages. ? Better PE's ? Dividend's? Growth ?
Which stock broking firms are available for Non Resident Nigerians in UK, US or Canada ?
What websites are available. ? [Made some searches and wasted a lot of time e.g. Nathwest Stockbrokers look good but the costs of trading and funding account looks high]

I will be grateful for useful clues to help me make a decision. And perhaps some others will find the info useful.

my friend i don't know anything about foreign stock exchange but i will advice you instead of taking your money to where you will not be able to monitor why not put your money in your country Nigeria stock exchange where you will see the stock market report freely on the pages of newspapers without paying anything for it. but you want to go to the place you don't know much about if you put your money there and then give you fake report about you stocks how will you know they are lying to you o boy you better sit down for your country jeje and explore the market with the money you have cos the market is fruitful and boyant for every player.
eh. advice for my good friend it doesn't worth it cos you don't know much about it and if you know it is not so easy even our naija own that we know so much self orange drugs MD fall victim of Kinley Securities MD that fraud him of millions of naira.

Pheemyhan, It is good to be informed, that is why I am seeking those having UK/US/Canadian stock trading experience. Worked briefly on assignment abroad before and that it's the money I plan to use. I know the money I brought back to Nigerian Stocks against advice from friends has really yeilded excellent fruits. But I never tried foreign stocks but extremely useless mutual funds which I have since closed.

Anyone with stock trading experience UK/US/Canada/??
Is it worth it or a waste of time?

I'm confused

Don't be confused. Looking at CNN website I see some very good PE's (between 10 and 18) quoted for some popular American companies and I wonder how bullish NSE is on some banks with PE's even above 50. It's all about diversifying if one can and still grow.

It will be nice to hear some real experience on the market out there in US/UK etc.
Is it worth it even for the sake of diversifying.

Babs_O:

Don't be confused. Looking at CNN website I see some very good PE's (between 10 and 18) quoted for some popular American companies and I wonder how bullish NSE is on some banks with PE's even above 50. It's all about diversifying if one can and and still grow.

The High PE is a reflection of the growth in teh economy. that's why looking at the PEG may be good also.

wanaj0 please can you give me a simple meaning of PEG and how it can be determined. And any experience with foreign stocks.

I would also like to know if it is worth it, particularly stocks in American Exchanges.

So if you've got experience with it, please let me know too!

@ BabsO,

I started buying stocks from LSE IN 1998. I've about 40 stocks at the moment. The major difference is that its really easy to buy and sell shares here in London. You can either do it online or over the phone using a debit card. If you buy over the phone, your certificate will be sent to your address within a week max.

You get regular updates about your dividends etc without chasing anybody. However, I don't think I'll be buying any stocks in the entire western world till further notice. Unless you have a crystal ball to pinpoint the company that will come up with the cure for Aids, its almost impossible to make the kind of money/roi you make on the NSE.

Only one or two of my LSE stocks have doubled in value and it took them almost 10 years. Compare that to my Skye Bank which I bought in March for N6.40 and now trading at N15.80! Oceanic bought at the same time for N16.50 now N28! I've seen the light and greedily steamed into Dangote Flour and Japaul. Costain and a few others are the next victims on my hitlist.

I heard the Chinese and Taiwanese markets are pretty good for outrageous returns. I recently watched a CNN clip about Chinese people selling all their possessions including houses to buy shares with the hope of making a killing.

I think the next big thing in Naija is mortgages, think about it. Demand and supply. Ironic that sub prime market in the States is taking a beating while our mortgage industry hasn't really taken off.

Trust me, NSE is where its at!!!

Crownvilla thanks for the insight shared. I spoke to a colleague who trades in his home country exchange in the Hague and he says his capital appreciation on average with his stocks are on average 10% per annum and dividend are not too bad at 3 t 4%.

I also read on how guys are hitting it big on the indian stock exchanges with money pouring in from non resident indians. Even I have tracked their mutual funds and seen crazy returns.

I have no doubts that NSE is a place to be right now for steady + 40% gains in dollar terms per annum even with wide pick of stocks. And the hard guys who invest more time will even achieve more. With good government the trend could continue for the next decade none stop. Especially as the Banks start growing the economy by funding both small and big ticket projects and when Soludo's AFC takes full footing in leveraging Nigerian Banks to finance viable projects freely in Sub-saharan africa. Plus our insurance companies taking up insuring bigger risks like Oil and Gas.

I think for now the London / US / European Stock exchanges are on a high and may drop over the next three years or stay flat. That is why I closed my mutual funds after achieving about 25% growth (£/Euro terms) and 50% growth dollar terms in the last 5 Years. (i.e. after initially suffering excruciating losses in 2003). NSE gave me about 500% in dollar terms in the same period!

Nice to hear any more insights or forecasts.

Babs_O:

wanaj0 please can you give me a simple meaning of PEG and how it can be determined. And any experience with foreign stocks.

PEG = P/E divided by Growth Rate;  the lower the PEG, the better.  The intuition is that if 2 stocks have the same P/E, you should prefer the stock with the higher growth potential

Hispy99
Please what is your experience on US stock trading. Is it worth it or NSE is the place to be right now and US stocks is a waste of time. Tots / eperience on this please.

Babs_O:

Hispy99
Please what is your experience on US stock trading. Is it worth it or NSE is the place to be right now and US stocks is a waste of time. Tots / eperience on this please.

Two companies have the same PE. The one in naija grows earnings at 100%, therefore, the price must double for the PE to stay the same. The one in the US grows earnings at 10% (if you are lucky), therefore, the price must grow at 10% for the PE to remain the same. I'm not a rocket scientist but the answer is pretty clear.

The US stock market has long-term retuns of 12%, Warren Buffet = 24%, Peter Lynch = 29%, Easimoni = 100+% p.a. over the last 3 yrs _{(thank God for Wema bank)}

I'd only open a US account when it's time to diversify. Concentration builds wealth, diversification preserves it.

easimoni:


(thank God for Wema bank)

lol, that is very true and funny

easimoni. Thanks to wema too bought @ N3.5 and in less than a year it is worth N15. Fantastic!!!. It covers my losses in Conoil in which I though I bought at a discount at N 72 and is worth N59 now. I could be off to US disney next holiday season after all the traffic jams and blackouts here in Nija when I take profit. Thus it really looks like a waste of time looking for a US / UK stockbroker for now.

Babs_O:

easimoni. Thanks to wema too bought @ N3.5 and in less than a year it is worth N15. Fantastic!!!. It covers my losses in Conoil in which I though I bought at a discount at N 72 and is worth N59 now. I could be off to US disney next holiday season after all the traffic jams and blackouts here in Nigeria when I take profit. Thus it really looks like a waste of time looking for a US / UK stockbroker for now.

Amen Bro! Amen.

Commenting on this, how can you think the stock market of Nigeria can be compared with that of LS and US ? Millionaires are never made overnight in the western world, taxes claim the better half of your income which includes your shares. You don't have to pay all that tax in Niger and you still get over a hundred percent yield in Nigeria. I remember my bank calling me up to ask me if I would like to invest some of my saved money with their investment unit, asking the interest rate I was been told 2-6% on 20,000 pounds. I laughed and told them transfer their business to Nigeria where they would get more than 50 % of their capital back in profits. Nobody known to me takes money from Nigeria to invest abroad, afterall big guys like Virgin and co target developing countries cos of lower taxes, cheaper labour etc. that they cannot get in their own countries.

If you are looking at the short term,Nigeria and other emerging markets offer higher returns.The only way you can get the kind of returns you get in the NSE,if you invest in the UK/US,is to try the UK's AIM-not the main bourse- or small cap companies which have higher volatility with the attendant risks.

There are a lot of foreign companies listed on the AIM here in the UK that offer emerging market's like returns.

Of course,the market has been bullish in Nigeria over the past few years but for how long? I think the best thing is to have exposure in both the UK/US and Nigerian markets.With the prospects of recession,the US/UK doesn't look attractive in the immediate future(though,markets historically actually perform well even during recessions).However,over the long term,its a safer bet than Nigeria.

when i first heard of day trading U S penny stocks, i was totally lost.There was so much vocabulary,so many things to remember,i didn't know where to start.i didn't know how everything fit together.This write up will give u an insight of what day trading penny stocks is and you could make a ton of money in nigeria.You know what, people do.
The next question is HOW CAN SOMEONE DO IT?
First and foremost lets get down some key terms first.

Day trading simply refers to buying and selling shares of a stock on the same day.

Penny stocks are stocks that trade on the OTC;BB(over teh counter bulletin Board)and pinks sheet(think of the OTC;BB and pinksheets as the nasdaq and New york exchange of penny stocks)Their typical price /share is around $0.0001-$5.00

Due delligence (often referred to as dd)-refers to the research that is necessary before deciding to buy a stock.it is extremly important.

Markets makers-institutions that regulate the stocks on the OTC;BB and pinksheets.

Bid-the price at which market makers are willing to buy your shares.In others words,the price you can sell your shares.

Ask-the price at which market makers are willing to sell you sahres.In other words,the price you can buy share.

Profit percentage gain-The maximum percentage level at which you want to take your profits.For example,if your profit percentage gain is 20%,then you will always take profits when the stocks rises by 20%.

Stop Loss -The maximum percentage level at which you will take a loss .For example,if your stop loss percentage is 15% and a stock you invested in falls by 15%, you will always sell your shares and take the 15% loss to preserve your capital.  Now that we got some basic vocabulary out of the way,lets find out what day trading penny stocks is reall all about.Day trading penny stocks as i have already said is simply buying and selling of a penny stock on the same day.
Now,why in the world would you want to do that?
Because that is how you can REAP THE MOST PROFIT IN THE SHORTEST AMOUNT OF TIME.
Here is an example.
penny stocks abc is trading at $0.05cents/share That means each share is worth 5cents
you buy 10,000 shares of ABC.That means you spent $500(0,05*10,000)
penny stocks ABC rises to $0.08cents/share
That $500 you invested in has turned to $800(you sold 10,000 shares at the price of $0.08 so $0.08*10,000=$800)$500-----$800 IN ONE DAY.That's a 60%gain.you will not see 60% gains in ONE DAYwith stocks trading at Nasdaq or NYSE.only penny stocks display this kind of rapid growth. With day trading penny stocks you can get 10%a day Historically speaking,long term investing in the stock market yields an average of 10%a Year We've al seen the example of commanding 10% a year and becoming a millionaire in 60years .What would happen if you compounded 10% A DAY?would it take long?You don't need a math degree to figure that one out.The result are Jaw dropping Has shown  below withsome of the trades in the month of August and September this yearEXMT 46% 09=15=08 A DAY
HKBV 300% 09=04=08 TO 09=05=08 TWO DAYS
TGIC 19% 09=05=08 A DAY
NILR 20% 08=14=08 A DAY
IMDS 52% A DAY
BDGW 29% 08=11=08
So here is day trading penny stocks in a nutshell.
(1) Open a Domiccillary account with a Bank
(2) Open an online Brokage account
(3) Do research (dd) and come up with a list of stocks that you would consider day trading for that day.
(4) Gauging how the market reacts,pick one stock accordingly.
(5) Enter a LIMIT ALL OR NONE buy order through your online Broker
(6) Buy the shares
(7) Sell the shares when you reach your profit percentage gain
( Repeat steps 1-6 daily
Here is what you need to get started
(1) A reliable and fast computer.
(2) Fast internet connection
(3) Powerful trading software with real time data
(4) In-depth knowledge of a realible trading online stocks Manual
(5) paper trading experience(Demo trading)
For more enquires send an E-mail to stocks@njbizworld.com or call 08079943995

Babs o

well from the post i can see that non of
the people that replied your post have
an idea of the potential of
international stocks.

take for example:

this stock Weida Communications, Inc. OTCBB: WDACQ
that made a lump 49,900.00% gains in just one trading day
(Friday 18th July 2008). This stock has been trading down
for a long time now and almost knocked out.


The hasty trader would have complained and probably
sold off at lost to free up his investment, while the
patient guy who always see his investment as a long term
wealth build up would have reaped this reward.
Imagine if he invested just $100 on this stock,
this would have been $49,000 (N5.8million)
capital appreciation for this year alone.

Now which stock in Nigeria at present can give you
49,900.00% return on investment in less than one
month?

The answer is none.

the highest a stock can appreciate in Nigeria is 5%
base on the new rule of NSE

Even the so called pennystock in Nigeria which is
comprising of mostly insurance stocks cannot give you such a
return on investment in a year.

for now if you are thinking of short term investment i will
suggest you go for international stock.

if you still want a list of USA or UK stock brokerage firm you can
contact me using the email address on my signature

There is a us based stock broking firm with a representative in Nigeria. I think you should check www.pectonline.com for more informations, their office is somewhere at Opebi in Ikeja. And you can still get couple of online stock broking firms by seaching on google, some of them even place advert at yahoo & google finance.

Now gone a full circle from gains to losses on the NSE. Diversifying to UK looks good. But US looks unclear with their growing budget deficit and large national debt.

lolx, very informative detail, thanks

Wonderful and splendid....thank God for seun for this forum.....!!! And thank the contributors for each piece contributed

Yea, anyone can buy foreign shares. Not just US/Canadian/UK Shares but almost all countries that has an exchange. Brokers like Saxobank, Internarxx, Interactive Brokers and many more you can find online. But Come to think of it, who still buys foreigner shares these days for keeps when short-sellers wouldn't allow shares to appreciate. IMO, anyone wishing to trade on foreigner shares should also know more about trading Share CFD's. Trading on Contract For Difference (CFD), you have to opportunity to profit from rising or falling market depending on your position (whether long or short) on the live market. Also, CFDs gives the opportunity to hedge on a losing position.

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