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Re: Nigerian Stock Exchange Market Pick Alerts by kolaish(m): 6:58pm On May 15, 2021 |
@onegentleguy, you are doing a good job. Your analysis are well detailed and educative. Please keep it on. 6 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by Ades1: 8:06pm On May 15, 2021 |
Topson88: Remember the saying, NEVER TIME THE MARKET. It applies to NSE too! Why not invest in both? I invest in both and funny enough I am doing better with NSE. I personally don't care about exchange rate, when I change my $ to Naira, I have no plan whatsoever to convert it back to $. The plan is to generate crazy cashflow through dividends which I intend to use to pay bills in Nigeria in the future. 7 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by Topson88: 8:19pm On May 15, 2021 |
Ades1:Thanks for the advice! |
Re: Nigerian Stock Exchange Market Pick Alerts by uzoexcel(m): 4:41am On May 16, 2021 |
Can you breakdown the meaning of the 4 aforementioned terms? ositadima1: |
Re: Nigerian Stock Exchange Market Pick Alerts by ositadima1(m): 7:53am On May 16, 2021 |
uzoexcel: Here are some quotes from investopedia Volatility: Volatility is a statistical measure of the dispersion of returns for a given security or market index. In most cases, the higher the volatility, the riskier the security. Volatility is often measured as either the standard deviation or variance between returns from that same security or market index. Value at Risk (VaR): Value at risk (VaR) is a statistic that measures and quantifies the level of financial risk within a firm, portfolio or position over a specific time frame. This metric is most commonly used by investment and commercial banks to determine the extent and occurrence ratio of potential losses in their institutional portfolios. Risk managers use VaR to measure and control the level of risk exposure. One can apply VaR calculations to specific positions or whole portfolios or to measure firm-wide risk exposure. Sharpe Ratio: The Sharpe ratio was developed by Nobel laureate William F. Sharpe and is used to help investors understand the return of an investment compared to its risk. The ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Volatility is a measure of the price fluctuations of an asset or portfolio. 1 Like |
Re: Nigerian Stock Exchange Market Pick Alerts by ositadima1(m): 9:26am On May 16, 2021 |
Why are risk measures useful? I think it is a useful metric to both buy and hold investors and shorter term traders. As a buy and hold investors it could be beneficial during the screening process. Highly volatile stocks are inherently more risky. Stocks that have their price bounce all over the place are less desirable. Astute investor use it all the time to adjust their exposure to downside risks by adjusting there cash in d market as a whole or in individual stocks. For a traders (I am aspiring to be ), those guys that trade well formulated and tested strategies, risk measure are particularly useful. For example, sharpe ratio can tell you how effecient your returns are while taking volatility and risk free investments(Tbills, Omo, goverment bonds etc) into consideration. After all, there is no point trading if you can make better returns risk free. It is good practice reviewing your past trades and generate performance metrics as well, you may think you are winning when in fact you are not, opportunity cost in mind. Also, testing trading ideas on past data is very important. As someone who has some exposure to engineering practices, we do it all the time. We run simulations - civil engineers run simulations of structural members(Staapro, Tekla, Navis Works, etc.) before they go out and start construction. Electrical engineers run simulations of distribution networks (Etap, Skm eg) before implementation. Why some people think they can just deploy trading ideas without proper analysis beat me all d time. 1 Like |
Re: Nigerian Stock Exchange Market Pick Alerts by Nobody: 11:41am On May 16, 2021 |
Oga ositadima ,I like the level you are operatingn the stock market as an engineer.In my old forum I was made to know in stock market all one needs is basic maths.I hope that has not changed as I no Sabi complex maths oh. Then I was equally made to know that Isaac Newton failed in stock business as he claimed he could not calculate the madness or behaviors of human beings 4 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by ojeysky(m): 12:51pm On May 16, 2021 |
yinka2011: What was the share price at that period,I think it was 100 naira at some point in history |
Re: Nigerian Stock Exchange Market Pick Alerts by DrAwo(m): 2:15pm On May 16, 2021 |
A key step in the practice of value investing is understanding that asset, its industry or the market... How can this be done? Listen to our latest podcast titled "Understanding a Business/ industry". https://anchor.fm/ajibola-oladele-awolowo/episodes/Understanding-a-Business-industry-e10v044 1 Like
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Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 3:09pm On May 16, 2021 |
Biafran4life: Na legendary fund manager Peter Lynch talk am, he said all the maths you need to succeed in the stockmarket you should have learnt it in the 9th grade or our own JS 3 3 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by ositadima1(m): 3:09pm On May 16, 2021 |
Biafran4life: Oga, let me start with that I don't claim to be an expert in these matters. I feel that our small forum, NSEMPA, is lacking in a lot of ways. Cos, spending some time on reddit and other foreign forums opened my eyes to what it really takes to trade in ways similar to what professionals do. Apart from a few individuals on this forum, most of the discussions held here are elementary or primitive, lol. I hope u look beyond this forum and see for ur self. In my limited view, 98% are buy&hold who use fundamentals to select investments. The rest are just tagging along. And yes, traders, that is people who depend on shorter time market inefficiencies need math beyond addition and subtraction. A good knowledge of introductory statistics and probability is very useful. Well, once again, if u do more of trading than buy & hold, I suggest u also check out other foreign forums. 3 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by ositadima1(m): 3:21pm On May 16, 2021 |
emmanuelewumi: Lol, and yet valuation is a topic taught at undergrad level in finance. Most of these guys oversimplify what they really do so they can sell their books. Or maybe you are one of those guys that consider advanced education useless. What is d point, we can all stop our education at js3, that's it! 1 Like |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 3:32pm On May 16, 2021 |
ositadima1: Multiplication, addition, division, subtractions, percentage, ratio, simple interest, compound interest etc are learnt from primary 4 to JS 3 10 Likes 1 Share |
Re: Nigerian Stock Exchange Market Pick Alerts by ositadima1(m): 3:34pm On May 16, 2021 |
emmanuelewumi: Ok, I suggest u hand over ur portfolio to ur 12 year old. |
Re: Nigerian Stock Exchange Market Pick Alerts by FatherCHRISTMAS(f): 3:35pm On May 16, 2021 |
Oo |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 3:41pm On May 16, 2021 |
ositadima1: Investment is as simple as ABC if you can control your emotions, have basic functional knowledge of mathematics and business. Read " Ordinary people, extraordinary wealth" by Eric Delman. School bus drivers, policemen, janitors, soldiers, civil servants, teachers, professors building multi million dollars portfolio by keeping it so simple 7 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by ositadima1(m): 3:52pm On May 16, 2021 |
emmanuelewumi: What most of these guys do is investing in indexes, it is practically buy & hold of selected stocks and dividends. Nothing fancy. Traders on the other hand are a different type of people. If u do indept research u will come to understand that to be a successful trader requires that u beat these indexes. A good trader is one that has alpha, returns more than d index. 2 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by DrAwo(m): 3:58pm On May 16, 2021 |
emmanuelewumi:God bless you for this... You do not need to be a quant or apply further mathematics to invest profitably... 7 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 4:27pm On May 16, 2021 |
ositadima1: Peter Lynch said all the maths you need to succeed investing in the stockmarket you learn in the 9th grade. He didn't say trade. Price earning ratio na ratio Profit margin na percentage. Profit na addition and subtraction. Earning growth rate na percentage. Debt equity ratio na ratio Dividend yield na percentage. Application and adaptation of our basic knowledge of mathematics to making money and identifying opportunities is the koko 7 Likes 2 Shares |
Re: Nigerian Stock Exchange Market Pick Alerts by ositadima1(m): 4:28pm On May 16, 2021 |
Let me show u what is alpha in practical terms. Again, let's take zenith as case study. 1. I buy 1 share of zenith in 2012 for #12.47(on first of February 2012, dat is how far back my data goes) 2. The total dividend paid within the period to date is #18.17(please correct me if am wrong) 3. I have no ideas if Zenith had had splits from 2012 to date so I assume none. 4. As at friday Zenith closed at #23.7 5. Total gain is (23.7-12.47)+18.17 =29.4 6. I made 29.4/12.47= 2.35 my initial investment from buy&hold. 7. Ok, my mean reversion strategy tested on the same data input did more than 5 times initial investment. 8. You can argue that I may not get into the market at adviced prices by my strategy due to slippage so I knock off 1 times. So, I get 4 times my initial investment. Mind u that I was not even compounding my returns. I am not bragging or something as I have nothing to gain from that, but my strategy holds alpha. Is buy&hold a bad way to go? Definitely not, I also have funds that yield dividends. Just that where d money is made handsomely is in deploying trading strategies. Now, I want to rest my case abeg, believe what ever u like. 4 Likes 1 Share |
Re: Nigerian Stock Exchange Market Pick Alerts by DrAwo(m): 4:43pm On May 16, 2021 |
ositadima1:I like the fact that you back up your arguments with data and practical examples... Now let's assume you have the discipline to follow your strategy meticulously.... Have you factored in the cost of the time you'll be putting in to closely monitor your strategy and the opportunity cost of that time? The person that does this buy and hold strategy will only need a fraction of the time you have put in and may have used that extra time for other profitable ventures.... The conclusion of the matter is that, there is more than one way to skin a cat. Different routes lead to the market. Whether you belong to team investing or team trading, stay true to what works for you... 12 Likes 1 Share |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 4:44pm On May 16, 2021 |
emmanuelewumi: The summary of what Peter Lynch said is that with basic knowledge of mathematics, business and common sense you can make money investing in the stockmarket. You don't need an MBA or advance degree in Finance before you can make money in the stockmarket, business and Investment. Your advanced degrees in finance are needed if you want to work as an analyst 10 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 4:49pm On May 16, 2021 |
Blooms identified the following in his taxonomy of learning. Arranged in ascending order Knowledge Comprehension Application Synthesis Analysis Evaluation. The first 3 is enough for us to make a success of what we have learnt in business, enterpreneurship and Investment The last 3, are advanced and are good for researchers, analysts and academia.. Unfortunately a great percentage of people who are successful in business, Investment and enterpreneurship are not researchers, analysts and academia 5 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by ositadima1(m): 4:53pm On May 16, 2021 |
DrAwo: Oga, I never berated buy&hold, it is very effective cos in the long run good coys go up. But, inbetween a lot goes on... Regarding time spent on running strategy is almost insignificant. The strategy is semi-automatic. A computer code does the hard part. I only need to close/open position every monthending with my broker and feed the program with data(which is pretty quick on my mobile). 3 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by igbizen(m): 7:23pm On May 16, 2021 |
emmanuelewumi:I registered with stanbic Ibtc broken online and I have started picking stocks some of which are paying dividend next month. Do I have to do anything else to get the dividened? |
Re: Nigerian Stock Exchange Market Pick Alerts by Mascotlawman: 10:09pm On May 16, 2021 |
What is even the main purpose of this thread? There are some certain individuals that I don't expect to come out here and be flexing muscles. I noticed this days, that people don't give stock recommendations any. But bashing and challenging each other in terms of the thing that does not benefit the majority in this thread. As an individual, if u win an argument here, where will u take it to? I feel so much pained because I have benefited from some of this investment forum. So when I see people that their aim is to destroy and get away, I don't feel happy. Please let's maintain a decorum here and help each other for greater achievement. God bless all. 7 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by jideflash(m): 11:47pm On May 16, 2021 |
i tire o Mascotlawman: |
Re: Nigerian Stock Exchange Market Pick Alerts by jideflash(m): 11:59pm On May 16, 2021 |
Samguru , Myhelper1, and any other person interested in this alliance. Its about time we get talking privately on this. what platform should we use to communicate? Telegram? samguru: jideflash: samguru: Myhelper1: 1 Like |
Re: Nigerian Stock Exchange Market Pick Alerts by samguru(m): 6:07am On May 17, 2021 |
jideflash: 2 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by ZikkyChops(m): 10:44am On May 17, 2021 |
... |
Re: Nigerian Stock Exchange Market Pick Alerts by yMcy56(f): 11:27am On May 17, 2021 |
ZENITH: Quite a lot of transactions @23.70........quite some accumulations here....... SOVRENINS: Quite some transactions from itchy fingers @26k........are we expecting some news here? FIDELITY: Inching up slowly and gradually.......sighted @2.40/2.43... 1 Like |
Re: Nigerian Stock Exchange Market Pick Alerts by OBAGADAFFI: 12:44pm On May 17, 2021 |
SEC accuse CMOs of frustrating e-dividend mandate process https://nairametrics.com/2021/04/16/sec-accuse-cmos-of-frustrating-e-dividend-mandate-process/ |
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