₦airaland Forum

Willie2015:
Nov is almost here!

kolaish:
It is weekend and I just think we need to share some experience on trading.

There is always huge differences between trading and investing. Trading in stocks entails buying and selling stocks for short term gains. Time frame for trading depends on your definition of short term, as for me, trading is buying to sell between a day and 6 months time. On the other hand, investing is to buy and hold a stock for long term gains i.e. a year till eternity. In trading stock, you focus basically on buying a stock when you see that the stock is cheap at the prevailing market price and that it may go up in the shortest possible time. For example, some traders buy stocks in order to make as little as 10% - 30% and sell on or before 5 days. Please note that trading does not necessarily focus on the fundamentals of a stock, but the short time potentials of capital appreciation/gains.

Below are the lessons I learnt from trading stocks in the last one year. Note that every year has its own peculiarity and challenges. So, we will keep learning and get better through experience.

1. As a trader, be very diligent and understand when to buy and when to sell. do not be in a hurry when trading, because you may lose some of your money if you are not careful enough. There is always a buyers’ market and sellers’ market for every stock, don’t buy when it is time to sell and don’t sell when it is time to buy (Timing is very important when buying and selling). Always aim to buy a stock before it starts an upward movement. Be cautious not to rush into a stock that is on a high trajectory, except if you are sure that the fundamentals/potentials of the stock can still make it go higher than your entry price.

2. Always aim to buy the dip when the price of your target stock is going down. Don’t be too fearful that the stock has not reach its bottom, if you have reservations about it, you can be buying in tranches as it is going lower in order to reduce your entry price. For example, I refused to buy Ardova when it was N11, thinking it may get to N9, but then, right under my nose Ardova picked from N11 and move to N23 within four months.

3. NEVER rush to buy another stock when you just made good profit from a stock; Relax and let the proceeds be in your trading account for at least a week before deciding on what to buy or do with it. If you are not careful, you may enter a stock that will ERODE the gains you just made and take you back to square one.

4. Avoid stocks that has returned more than 100% - 400% year to date, if you insist on buying it, you may end up carrying the shell and being the foolish trader holding forth for the smart traders (mai kaya in hausa language )

5. Exercise restrain when buying a stock that is on a rally due to expected good result by the market. Reason being that the price of the good result may have been factored into the stock already. Therefore, it may not rally again even after the release of the juicy result. Infact, the price may start to decline after the release of the good financials. Example is FCMB @ 697k

6. Also, be cautious about entering the market when there is general market bull between 10am – 12pm. The bull may be an initial gra-gra that may slow down before the close of market. Therefore, those stocks going up like private jet may still be sold lower between 1pm and close of market. Example was when I rushed to buy FCMB @ 697K based on their outstanding Q2 2023 performance, only to see the same sold at 640k around 1.30pm. Right now, I am yet to see the price hit my average price of 679k, though I am prepared to wait till release of their Q4 result as I still believe it will still surpass 700k.

7. Do not hate or judge any stock due to its past antecedents. As far as it has not been delisted from the market, money can still be made from it. Therefore, study the present status of the stock distinct from its past and see if opportunity exist for you to make quick gains. Examples of these type of stocks are DaarCom, IEI etc For instance, I annoyingly sold the IEI that I bought @ 124k in 2011 for 29k few months ago just because I am not happy with the company, instead of studying the present situation and buy more. Infact, I got angrier everyday when its price was increasing till it got to around 140k (bad belle, you will say ). Due to this point, I was able to swallow my pride, bought some alleged bad stocks. for example, I made 160% gain on Oando because I know that I have nothing to loose when the price was around 525k. I made another 115% gain by buying Japaul @37k and selling at 84k, all within 2 months of purchase.

8. Do not be too much in a hurry to exit a stock with good fundamentals/potentials. It may reach the price you never imagined. For example, I bought NAHCO @ 725K and exited at N14, not knowing it will still be sought after even at N22.

The points above is just a little summary and not all my experiences. While trading, you should expect gains and losses. When you gain, you are happy and when you lose, don’t suck much, just re-strategize, put the lesson behind you and move-on. However, I can say that I have been successful due to fact that I made 75% gains as against 25% losses. The gurus in the house can give us their experiences too on trading or investing.

Disclosure: I do hope that @onegentleguy will forgive me for infringing on his privacy (epistle )

NapoleonHill:
This is quite insightful. Thank you.

Can you write about dividends in your next post for some of us who are new to this? We'll like to know the process to file for a dividend and how it's calculated.

Emndy:
E be like say you been neva load-up all these while oo

It's alright. No need for me to shalaye, let's see how it goes for DangoteFood (DS/NASCON) this November.

Willie2015:
Quit being an investor...
a long time ago...
Am a trader. ..now
Once I made a decent gain..
next action is to exit...
Push the gains to Real Estate and Fixed Income....
Opportunities will always present itself..
After Q3 result by EOM...
Na sit down look ..
all of us go dey...
for the whole of Nov.....
till first 2 weeks in Dec...

Willie2015:
Quit being an investor...
a long time ago...
Am a trader. ..now
Once I made a decent gain..
next action is to exit...
Push the gains to Real Estate and Fixed Income....
Opportunities will always present itself..
After Q3 result by EOM...
Na sit down look ..
all of us go dey...
for the whole of Nov.....
till first 2 weeks in Dec...
Make MSCI carry their kaya comot for sale first..

BullBearMkt:
UBA Market Structure Demonstrates Promising Prospects for Investors

The prevailing structure of the UBA market exudes robust bullish tendencies. As evident on the monthly chart, the price trend is consistently making higher-highs and higher-lows. The 8.65 level has established itself as a strong level, historically acting as a formidable resistance level and on a one occasion, as a support level.

After the high in January 2018, there has been a price retracement, and all subsequent five or more attempts to rally beyond 8.65 have invariably faced substantial resistance, consequently driving the price beneath this level. However, a shift was observed in the preceding month of May 2023, when UBA's price not only breached this persistent level but also managed to close at a higher-high - an event not witnessed in the past five years!

In light of the recent price pullback mirroring the pattern from July 2017, the key question arises: Is UBA's share price primed for a vigorous rally, either with price resistance at 8.65 or a deeper correction to below 7.75?

PLAN YOUR TRADES AND TRADE YOUR PLANS

Locotrader:
Traders always look for liquidity and nice trade set up.And you can't see that in the system now?
Maybe you are a kaya trader.You go collect tire

unite4real:
The board resolutions on both food and cement have it that the Q3 reports will be submitted to the exchange on or before 30th October. So they are still within time frame

Locotrader:
https://doclib.ngxgroup.com/Financial_NewsDocs/39709_SUNU_ASSURANCES_NIGERIA_PLC-_QUARTER_3_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_OCTOBER_2023.pdf

Impressive result.
Some stocks will join Japaul on full bid on Monday.
Tinubull round 2 is here again.

vacanci:
November is historically bearish gang waiting for Santa, here are a few select stocks I just checked their history for November last year

UkwuAmu:
They could do themselves some good by giving like 7 for 1 so that everyone can buy . it will get to that price before you know it . If Google, Apple and Microsft didn't do split, a lot of people will not be able to buy . Berkshire Hathaway Inc Class A NYSE: BRK.A is going for 510,125.00 USD per share

vacanci:
https://www.google.com/amp/s/guardian.ng/features/dangote-to-spend-n1b-on-adamawa-outgrowers-farming-season/amp

starpower:
The 3rd quarter Is loss. The insurance business still at loss only a windfall from other income which is revaluation of an fx friendly investment

crownprince2017:
Which companies are likely to benefit from this cng initiatives.

Good morning everyone.

essentialone:
MRS stock may likely rally up in price soon.

Stocks that are also likely to continue on Full Bid today are:

ETranzact
JapaulGold
UACN

essentialone:
I see UACN hitting N18 before 32nd December.

Yoast:
The stocks include
DANGCEM (Dangote Cement)
MTNN
GTCO
Zenith
Seplat
Stanbic
Nestle
NB (Nigerian Breweries) and
BUA Cement

Wahala no dey finish

Hogwarthtrades:
Sugar cane money if well harnessed, no be here oh.

megawealth01:
Any fundamental...?

essentialone:
MRS stock may likely rally up in price soon.

Stocks that are also likely to continue on Full Bid today are:

ETranzact
JapaulGold
UACN

Emndy:
Something were ppl don dey mop b/w N50 to N60 in the past weeks. The Q3 he is expecting is of little effect considering that DangoteFood will be listed in 3 months @ a price most likely around N100 +/-N10 and will continue its northward journey chasing BuaFood.

If him want buy, simply load up enough quantity you are comfortable with. Stop to dey wait for Q3 result. By first week of November e fit dey late.

Princkez:
will Alhaji pay interim as he did with NASCON?