Stock Trading- Winning Strategies pt 2

© John Efetobor. All Rights Reserved http://stocktradingrevolution.blogspot.com


Every investor like a seasoned fisherman must be abreast with sound foundational understanding of the undercurrent behavioral patterns of stocks investment. These winning strategies when fully understood can swell up your bank accounts beyond your wildest imagination.

8. If you are a short term investor ...That is an investor that trades for capital appreciation. Monitor closely the closure of registrar, because it will guide you as to when to sell. On the other hand, if you are a long term investor, that’s you are interested in capital appreciation, dividends and bonus payouts over the long term, then closure of registrar guides you to hold on to your shares and possibly buy more incase you don’t have shares in identified companies. Don’t buy a stock after closure of registrar.

9. Make it a habit of attending seminars on stock investment, buy materials such as manuals, audio and video cds, investment books, to enhance your knowledge about investing, investment newspapers such as Success Digest Extra, Stockwatch, Financial Standards, Moneywise, will be very helpful ultimately. Remember this is one of the Intelligent Stock Trading. tactics you have to cultivate.

10. Know how to apply the principle of earnings per share. Because it shows you clearly under priced and overpriced stocks in the market. It is arrived at simply by dividing the profit after tax of a company by the outstanding number of shares. For instance if the P.A.T of Efetobor International Plc is $20,000,000 and the outstanding number of shares is 1,000,000. Formula therefore, will be $20,000,000 divide by 1,000,000 units of shares =20. Note EPS is calculated in tens. Statistical Methods Of Stock Trading is an invaluable asset to a stock trader, try and avail yourself of this informational book, it can make all the difference.

11. Apply the principle of diversification, by spreading your investments into different sectors, and also mixing your portfolio with both penny stocks ... undervalued.., growth and blue chips stocks. Apply the principle of B.R.E. buying time, resting time and exit time to all your investments. Know when to buy, when to rest and when to sell.

12. Have a personal relationship with your stockbroker, appreciate him, buy gifts for him; this will endear you to his heart, because you need him to facilitate your trade.

13. Know how to apply the principle of Per Earning to Ratio. Because it shows you cheap or under priced stocks. It is arrived at by dividing the earning per share by the current price of a share. For instance the earning per share of Efetobor
International Plc is 20 and the current price of its share is $60:00. Formula is 20 divide by $60:00 = 3 therefore, the P/E ratio is 3.

14. Apply the principle of quarterly and yearly reports. Your ability to read between the balance sheet and released audited financial reports of companies is very vital to reaping huge profits in the stock market. You will be able to know companies that have performed well on the basis of the details released. For instance profit before tax , profit after tax , earnings per share which determine dividends that shall be paid to share holders.

The performance of a company in these areas and other important areas that space will not permit me to attend to here is a pointer to the stocks you should pitch your tent with.


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Stock Analysis Skills- Basic abc Formula

© John Efetobor. All Rights Reserved

The basic ABC formula is a strategy I consider very vital and fundamental to stocks analysis, this is because without it, you cannot have a full grasp of what the capital market is all about. Stocks trading can be such an interesting endeavor if you can apply yourself to practical and common sense thinking.

As I write this article, there are about 265 companies listed on the floor of the Nigerian Stocks Exchange. These companies are further sub-listed into 33 sub sectors. Companies are sub-listed according to the services and products they offer. All this information’s are very important when it comes to stocks analysis.

The first thing you have to take into consideration is to take a close look at all the 265 companies one after the other, seven vital research you must carry out includes

1. Find out what each company is doing.

2. Find out what period of the year each company will be most favored to do more business.

3. Find out sector leaders amongst the companies in every sector.

4. Find out what each sector is all about.

5. Find out which company commands the highest trade volume in each sector per time and why?

6. Find out the job descriptions of each sector.

7. Find out for instance if Government pumps money into a sector, which company will profit more.

Let's review theses points in details!

1. Find out what each company is doing: Is it not surprising that people invest into a company without having a clue to what such a company is involved in terms of company location, what business they are involved in. In stocks analysis, this knowledge is very critical.

2. Find out what period of the year each company will be most favored to do more business. Most companies in the Nigerian Stocks Exchange do more business during specific periods of the year or are affected by certain seasonal events e.g. a sub sector like Building materials and construction will be most impacted during a period a heavy construction project like when the National Stadium was constructed in Abuja a few years ago, this is one of the prized Secrets Of Successful Traders.

3. Find out sector leaders amongst the companies in every sector. Do you know that in every sub sector, there are companies that enjoy more patronage in terms of business because of their leadership position e.g. in Agriculture sub sector Okomu Oil and Presco.

4. Find out what each sector is all about. The Nigerian Stock Exchange is sub listed into 33 sub sectors for clarity purpose, otherwise there will be conflict of business. You must understand what each sector is involved in, in terms of their business description, why? As you keep tabs on economic, social, religious, cultural and sporting events as to when they come up, you will easily decipher which sub sector and of course which particular company will benefit more from such events so that you can take position way ahead of others for you to maximize profits.

5. Find out which company commands the highest trade volume in each sector per time and why? If you take a close look at the daily trading patterns of the Nigerian Stock Exchange, you will observe that there are some companies that command superior volume of trade consistently over others. As an analyst, it is your duty to closely monitor these companies.

6. Find out the job descriptions of each sector. It is the responsibility of any stocks analyst to find out the production description of every company that is quoted on the exchange, in other words, it will be to your advantage talking about making millions from trading in stocks if you can take time to dig into the nature and scope of companies, especially the ones you have taking particular interest in. Why do you need to do that? When an opportunity that you would ordinarily ignore knocks, you can easily apply it to the companies that it concerns because of the timeless knowledge of the job description understanding you already have.

7. Find out for instance if Government pumps money into a sector, which company will profit more. From time to time Government releases funds to different sectors, from experience I know that there are some company that profit more; find them out.

8. Stock analysis skills is like a master key: Intelligent Stock Trading. skills is an invaluable asset, when you are in possession of it, you have the confidence that can enable you to access all doors in the capital market as far as stock picking is concerned.

Stock Analysis Skills- Introduction

© John Efetobor. All Rights Reserved http://stocktradingrevolution.blogspot.com

Every stock trader in the marketplace globally that I know, they all have just one objective- to make money. However, very few people are able to sucessfully make money in the long run. When the market is rallying up, almost every dick and harry makes money trading stocks. However when push comes to shove during the bearish season; they take along with them almost all the profits of unsuspecting investors.

Stock analysis is an art that requires skills . If a stock trader is not watching his emotional attachment to certain stocks, he'll definitely get his fingers, if not his life burnt. To avoid such mishaps, it is important that he imbibes every analyzing tools that are vitally necessary for his success. well in the art of analyzing and picking profitable stocks, one does not need a Harvard or Cambridge ability or knowledge to do well, all you need is four simple tools, what’ll be extensively explained in other parts of subsequent articles of this series, What the average prospective stock investor needs are

1. Common sense

2. A good sense of history

3. A good sense of arithmetic... arithmetic is the branch of mathematics that deals with subtraction and addition.

4. Sound trading skills.

How can one know which stocks will make profits in the stock market? How can you be sure that the stocks you are investing your money into will not burn your fingers? Such questions are tough to answer if you don’t know your way through the uncertain road of stock's investment,Nicolas Darvas Home Study Course, and Market Master Trading Course. will be very helpful . To be at home with analyzing hot stocks that can crank fortunes into your bank account, you must be able to cultivate the ability to think straight; you must be diciplined when it comes to controlling your emotions, as a stock analyst of almost ten years standing, I've seen men destroyed because they couldn't seperate their feelings from the reality that was starring them in the face.

Stocks analyzing discipline can be achieved with strict money management discipline. Every investor must be able to acquaint himself with basic stock analyzing tools like common sense, which enables you to be able to think rationally. This is intended to open the eyes of the investor to objective analysis to show him how to identify stocks for trading. How to subtract falsehood in terms of companies that don't have strong fundamentals and add up sound facts based on sound technical and fundamental realities, When an investor is not familiar with the performance of companies in the previous years, he can fall into the trap of repeating a sad history of loses. A good sense of past performance can save a stock trader from basing their investment on guesswork or flimsy rumours that holds no water.

Stocks’ trading is believed to be risky by certain category of investors and such people are intimidated to go into trading, Risk no matter how risky it is, can be reduced to the barest minimum by knowledge, a sound knowledge of the dynamics of equity investment will be of life help to you ultimately. Try reading Minimum Risk Investing In The Stock Market, this book can make the world of difference in portfolio.

You must understand that it is investor’s sentiment that drives the prices of stocks. Your ability to know what is responsible for these sentiments, why investors respond to certain stocks the way they do is very critical to your analyzing skills.


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Stock Trading- How To Approach The Stock Market

© John Efetobor. All Rights Reserved http://stocktradingrevolution.blogspot.com


Before an investor can begin to trade successfully in the Nigerian stock market, there are some basic skills that one needs to be able to position oneself for maximum profits.

The Nigeria stock market is made up of two markets, the primary and secondary markets. A sound understanding of how these two markets operate is very vital if you are going to succeed. At this junction, let’s x-ray these two markets to understand their workings.

1. THE PRIMARY MARKET

The primary market is where fresh funds are raised, anyone who buys shares in this market does not pay any commission, If a company's IPO is out for the public, all you do is to fill the form and issue your check,

The primary market is the period from the time of the IPO to the point where allotment was done and money returned to those who could not get all they requested for. The primary market is where both new (unlisted) and old (listed) can raise funds in the future either through PO, IPO, RIGHT ISSUES. Also, it is pertinent to mention here, that privete placement activities also are carried out by small sized companies that are aspiring to be listed at floor of the NSE also come to the public to raise funds privately.

2. THE SECONDARY MARKET

In order to have an enabling ground to buy and exit effortlessly, the stock exchange provides the platform for trading in listed company shares by institutions and individual. The secondary market is where potential investors can buy and sell such shares. Those who buy at the primary market who have received their share certificate and those who bought directly from the floor transact business at the primary market.

3. HOW THE SECONDARY MARKET WORKS.
Once a company is listed, trading on its shares commences. The issuer’s broker announces the listing of the shares, immediately after which other brokers start trading on the company’s shares from that day. Stockbrokers come to trade on behalf of stock brokerage firms; they are members of the Nigerian stock exchange and are represented at the trading floor by stockbrokers.

When a customer wants to buy a stock either by the advice of your stockbroker or on your own understanding, after the agreement on what to buy is reached, the customer gives his stockbroker a written mandate specifying those stocks. He will also fill out a CSCS shareholder’s form and transfer forms. The information given enables the customer to receive correspondence from the registrar and CSCS Ltd, In future, it is on these basis dividends, bonuses, annual accounts and reports will be sent to him. The customer will be issued a contract note by the stock broking firm, which is evidence of purchase. When such stock gets to an appreciable height in terms of capital appreciation in price, he fills out mandate for sale, mandating the stock broker/firm to sell on his behalf.

In the final analysis, approaching the stock market requires that you acquire the foundational know-how necessary for trading, so that you can know how to steer your way in the sometimes uncertain waters of stocks investment, in this light therefore. I'll recommend Nicolas Darvas Home Study Course. and Market Master Trading Course. a an important resource.

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Stock Trading Terms You Must Be Familiar With

© John Efetobor. All Rights Reserved http://stocktradingrevolution.blogspot.com

Every field of human endeavor have its own terminology that is associated with it, the stock market is no exemption. Therefore this article seeks to make you get familiar with some of the day to day terms of stock trading.

a. Share. Describes the total share holding of a company divided into bits or slices to be purchased by institutions or individuals.

b. Securities. The unit shares you hold are well protected to the extent you invested by the regulatory authorities. Once a share is created, it cannot be destroyed, stolen, and can only be transferred.

c. Equity. Means the distribution and sales of shares are equitably done i.e. once a price is fixed; it remains the same for everybody irrespective of where you live unlike property investment whose prices are affected by location.

d. Stocks. Describes the total volume of shares held by the individual in company.

e. Rally. Means simply that the stock market goes up from whatever point it stood at when the rally started.

f. Blue Chips. Describes solid, quality stocks on the stock exchange e.g. Nestle, First Bank, Cadbury, Nigerian Breweries, Zenith Bank. The term is derived from the blue chip used in gambling especially in poker, which has the highest value.

g. Correction. When the market has moved rapidly in one direction, then changes (usually not so rapidly) in the other direction.

h. Long pull. How high an investor thinks a stock price will go before they sell.

i. Pull back. When the price rise reaches its peak, slows and then stops and begin to decline or fall back, people begin to sell at this point.

j. Bottom out. When the price has gone as low as it can, investors begin to buy again.

k. Liquidity. When we talk about liquidity on a stock exchange, we are talking about how easily and quickly a company shares can be converted to cash. If it is very liquid, it means is easy to
trade in the shares.

l. Bull trend. Upward move or trend. It means the market is going up and is doing well, as reflected in share prices.

m. Bullish. Investor who believes that the market prices are going to go up.

n. Bearish. Investor who believes that the market prices are going to go down.

o. Stag. Investor who wants to make profits from new issues of shares. He buys the shares before they are listed. Then sells them at a higher price soon after they are listed.

p. Automated Trading. Is when the buying and selling of shares is done on a computer? dealers enter buy and sell orders for shares into an electronic trading system on a computer. The computer automatically does a transaction with the best selling and buying prices.

q. Brokers Contract Note. The broker’s contract note is very important. It shows everything about the deal that the stockbroker has done for you. It tells you how much you have to pay the stockbroker for the shares he has bought for you. If you have sold shares it tells you how much you will receive for the sale of your shares.

r. Certificate of Stockholding. Shows how many shares you own. It is a very important document. You must keep it safe place.

s. Capital Market. Refers to the Stock market, it is a platform for raising money or capital from the investing public to meet company’s financial needs.

t. Money Market. Refers to Banks and other financial institutions that offer loans investment opportunities and capital for businesses.

Getting familiar with stock trading terms is an invaluable asset to any investor worth its salt. Read Statistical Methods Of Stock Trading. and Day Trading Freedom. Don't disregard it, it could make the difference in
your investing career.

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Stock Trading- Winning Strategies pt 1

© John Efetobor. All Rights Reserved http://stocktradingrevolution.blogspot.com



Every investor like a seasoned fisherman must be abreast with sound foundational understanding of the undercurrent behavioral patterns of stocks investment. These winning strategies when fully understood can swell up your bank accounts beyond your wildest imagination. This is one of the higly guarded Secrets Of Successful Traders.

1. Invest when a company is coming out for private placement. At this stage only very privilege few know about the company and the price of the offer will be ridiculously cheap. You know after the closure of offer you will get your share certificate quickly unlike public offers that can take as long as 8-10 months for you to get your share certificate. By the time the company comes to secondary market [floor] the shares will be in few hands, more people will be chasing the shares, thereby driving up the price.

2. Invest when the company is about to be taken over, for instance, If the Federal government is about selling its shares in a company to a core investor and also to the general public. In other words they are relinquishing their equities or holdings in such companies e.g. When National Salt was sold to Dangote group.

3. Invest when core investors are investing in a company. Core investors either local or international are strategic investors or fund managers with large pool of cash that they ingest into a company, the large pool of cash will energize the company to make huge profits for investors. You must investigate the caliber of people running this firm, their performability and competence before investing along side with them.

4. Invest during Initial public Offerings. This is when a company is coming out for the first time to raise money for business expansion e.g. Dangote Sugar refinery. It made over 300 % profits for investors that pitched tent with them.

5. Invest in an existing company shares on the floor just before they come for public offering. If the company is planning to come out for public offering and has strong fundamentals, rumours will drive the price up, and subsequently, when the technical suspension of the company is lifted, the price usually rally up to make huge profits for investors.

6. Invest in Penny stocks that have good technical and fundamental strengths. Penny stocks are low priced stocks in various sectors of the market. On a good season [bullish season] can make between 200% - 1000% for an investor. Look for penny stocks that have good earning per share and it’s per earning to ratio is comparatively low and buy large volumes since they are cheap, you’re certain to make a kill. This informational materials Profit From Day Trading Penny Stocks! and Penny Stock Secrets Revealed. can make all the difference in your portfolio.

7. Invest when prices of shares are low and down generally. During bearish periods, people do panic selling, that is when stocks that are usually scarce during bullish periods are cheaply available. Understand that every stocks has it’s high and low periods, for instance A.G Leventis usually dips to a low point every November – December, that is a good time to buy. Statistical Methods Of Stock Trading. is a potent strategy that seasoned stock traders have emplyed over the years in stock trading.

Mastering stock trading winning strategies is vitally critical to your ability to post awesome profits in stock trading pursuit.


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The Stock Traders Mindset pt 2

© John Efetobor. All Rights Reserved http://stocktradingrevolution.blogspot.com


Every genuine stock trader I have encountered so far in my almost ten years of stock trading and analyzing of stocks all have one common denominator; they all believe that everything is possible in the capital market.

The mindset of a stock trader is a comprehensive description of the mindset, thought pattern, believes, heart beat, and approach to stock investments. The traditional stocks investor is averse to taking risk, plays safe, takes his time, is not knowledgeable of the undercurrents of equity investments, he is grossly ignorant of the dos and don’ts of stocks investment, he is a passive player in the very active terrain of the capital market. No wonder they make just 10% of the over 12 trillion naira that exchange hands daily in the capital market and they constitute about 90% of investors that lay claim to owning shares of companies.

Stock traders smile to the bank everyday with about 90% of the over 12 trillion naira that actively is changing hands in the capital market, they make just 10% of investors in the Nigerian Stocks Exchange, even other notable nations of the world. Why not check out the amazing story of How I Made Over $6 Million In The Stock Market - After Taxes. is a clear attestation of a stock trader who practised skills acquired from study. A Stock trader as the name implies buys and sells stocks; the emphasis is on the word ...TRADE... there is a constant exchange of stocks for money, it is his trade-mark.


1. HE IS INTERESTED IN HIGH LIQUIDITY STOCKS

If you take a close look at the daily, weekly and monthly trading, you will observe that it is the sector leaders that lead in volume of trade, they are the ones that command more patronage, their daily trade volumes is in millions. Now, this is very important to the stock trader for the sake of effective and unhindered trading.

Let me describe how this mindset works. High liquidity means high trade volume; stock traders Focuses on high volume stocks, therefore, he knows it is dangerous to buy into a company that does low trading volume, why? because when he wants to sell, it will be difficult to do so. Please read Profit From Day Trading Penny Stocks! this book will show you how to trade on highly potential value (penny) stocks.

2. HE CONSISTENTLY LOOKS FOR OPPORTUNITIES OF HOT STOCKS TO INVEST IN

The capital market is a beehive of investment opportunities for all investors to make fabulous returns. These opportunities come in different shape and sizes; also they come in different colorations, but it is the seasoned stock trader that is able to grasp them because he consistently looks out for them. My friend Nicolas Darvas Home Study Course. will greatly assist you to spot wealth opportunities even with your eyes closed.

The stock trader knows the addresses of where to locate these openings, He goes to investment columns in daily newspapers, in investment newspapers, stock investment programs in Radio and Television, at seminar venues and stock investment websites.

3. CONSISTENTLY EDUCATES HIMSELF.

Equity investment education is paramount to the stock trader, He knows acquiring stock trading understanding is non negotiable, he knows the knowledge of yesterday at best is good enough for today but certainly not for tomorrow.

You will always find him at seminar grounds both paid and free, most stock traders do subscribe to top stocks newspapers, they are on the list of first class stock investment newsletters of stock trading related websites on the internet.


4. HE IS ACTIVELY INVOLVED IN STOCK TRADING

Stocks’ trading is a full-time vocation, so important that it cannot be left completely in the hands of a stock broker, which in my considered and humble opinion can be detrimental to your investment health.

Therefore, by the foregoing, the stocks trader is actively engaged in trading, it his passion, he derives a thrill from trading in hot stocks that sees him growing his portfolio to enviable heights.

Conclusive, it pays to cultivate the mindset of a stock trader. All over the world, the best performers in equity investment have been known to be stock traders. You now have their secrets at the tip of your fingers, what are you going to do with it?.

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The Stock traders Mindset pt 1

© John Efetobor. All Rights Reserved http://stocktradingrevolution.blogspot.com

Every genuine stock trader I have encountered so far in my almost ten years of stocks trading and analyzing stocks all have one common denominator; they all believe that everything is possible in the capital market.

The mind-set of a stock trader is a comprehensive description of the psychology, thought pattern, believes, heart beat, and approach to stock trading. The traditional stock's investor is averse to taking risk, plays safe, takes his time, is not knowledgeable of the undercurrents of equity investments, he is grossly ignorant of the dos and don’ts of stocks investment, he is a passive player in the very active terrain of the capital market. No wonder they make just 10% of the over 12 trillion naira that exchange hands daily in the Nigerian capital market and they constitute about 90% of investors that lay claim to owning shares of companies.

WHO IS A STOCK TRADER?

The 21st century definition of a stocks’ trader is very interesting. The term trading which simply means ...to buy and sell... will give the impression that stocks’ trading connotes having the knowledge of buying a ware from the trader or wholesaler next shop and looking for a customer to sell to. In theory it makes sense, but it is not a practical reality.

A stock trader is one who buys and sells shares of companies at the Nigerian Stock Exchange with the active assistance of a registered stockbroker since an individual cannot do business direct with Nigerian Stock Exchange.

A second definition of a stock trader can be understood from the services rendered by accredited stockbrokers at the floor of The Nigerian Stock Exchange. Every day from Monday to Friday 9.30am to 12.30pm. They do their business via computers wired to the extensions of the Central Security Clearing System Ltd.



1. HE TRADES FOR CAPITAL APPRECIATION

Every stock trader I know is profit conscious, which is his primary motivation for investing. So he seeks stocks that have high capital appreciation potential (the difference between purchased price and sold price) to buy and waits for the right time to sell.


2. HE IS INTERESTED IN BUYING AND SELLING STOCKS REGULARLY AND NOT TO KEEP THEM

The average and active stock trader is interested in buying and selling stocks and not to keep them. Unlike a long term trader that can afford to keep purchased shares for a pretty long time. The stock trader gets his thrills from trading stocks frequently, He thinks turnover. A stock trader is one who does Intelligent Stock Trading. that is probably why he is always ahead in the game of stock trading


3. HE POSITIONS HIMSELF EITHER FOR DIVIDEND OR BONUS IN THE SAME SENSE AS IN CAPITAL APPRECIATION


A long term investor places high premium on dividends and bonus scrip over a long period because it increases the size of his portfolio, he buys into a company, receives either dividends and bonus or both and keeps it. But the stock trader on the other hand loves bonus and dividend because on the short run will increase his portfolio, when a stock trader picks out a company that will give dividends and/or bonus he buys into it, after closure of registrar and subsequently, after payment dates sells such a stock and looks for other opportunity else where.


4. HE IS READY TO TAKE CALCULATED RISK

One of the major reason many investors miss out on extraordinary opportunities that readily makes themselves available every now and then is because of the fear of taking risk. The vast majority of investors in the capital market are averse to risk taking because of what I call investment ignorance. If you want to master the art of reducing your risk in stock trading, I'll recommend Minimum Risk Investing In The Stock Market. I believe you will find very USEFUL information that can aid you in mastering the art of taking calculated risk in stock trading.


The seasoned stock trader understands, that in the capital market the higher the risk the higher the returns, therefore he spends time to invest in himself by attending seminars , reading stocks investment books, investing in audio and video CDs, visits the internet frequently to be abreast with current trends; in this regard why not try out Market Master Trading Course. Because every seasoned stocks trader understand that through knowledge risk can reduced to the barest minimum.


Every stock trader knows that stocks’ trading is serious business, one needs to be abreast with the undercurrents skills of stock trading, he does not hinge his trading on assumption or feeble speculation; he is constantly researching the behavioral business pattern, history, events, news that makes the round, all of these is to ensure that he stays current with developments in the stocks market. (This is The first Part Of This Report).


Understanding the mind set of a stocks trader puts you easily into platform of men who by virtue of their investment style are very active, they derive their thrills from been active and mobile in the capital market.

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STOCK TRADING BASICSStock Trading Basics (Nigerian Perspective)

STOCK TRADING BASICS © John Efetobor. All Rights Reserved http://stocktradingrevolution.blogspot.com

In this article I am going to give you vital lessons on stock trading, but I must warn you though, this is for serious minded people that want to have access to fortunes in the stock’s market. If you’re at all inexperienced at this sort of thing, you will probably find this website most refreshing and rewarding, happy reading.

Stock trading is an aspect of stock investment which in my belief has been greatly overlooked, undermined and misunderstood. The reasons are not farfetched; I’ll get to that in a moment but first let’s attempt to throw light to this “well of gold”.

I want to show you what you may be missing by not been actively involved in stock trading with statistics that may stagger your ignorance. Do you know?


1. That the Value of the Nigerian capital Market is well over N12 trillion.


2. That the current (2008) budget of the Federal Republic of Nigeria is less than N3 trillion.


3. By implication, the Nigerian Capital Market...NSE... is Four times the size of what Nigeria thrives on yearly.


4. That Nigerian Stocks Market is ranked as one of the highest stock market with the highest returns on investment worldwide.


5. That only 10% of active investors make over 90%... N9.18 trillion... of the N12 trillion that exchange hands daily.


6. That the Nigeria Stock Market holds the greatest opportunity for every Nigerian residing in the country and in the Diaspora to create wealth.


7. These 10% active investors are stock traders.


8. If you want to get on the train of stock trading, there are some basics you have to grapple with in order for you to perform excellently.

SECONDARY MARKET

There are two markets where investors do business in the capital market, namely primary and secondary market. The vast majority of stock investors (90%) do their business in the primary market, why? Basically because it is an all comers market, there are no restrictions since you can do business without necessarily depending on the famed stockbrokers. At the primary market you can easily buy shares across the counter, all you need to do is pick up a form, fill your data into it and pronto you are done, in another word, some level of ignorance of how the system works can be tolerated, but not so with the secondary market, it is highly regulated by the stakeholders of the Capital market which include The Nigerian Stock Exchange, Security and Exchange Commission and Central Security Clearing System Ltd.

TRADING ACCOUNT

F

or starters, you need a stock trading account with the CSCS Ltd to enable you trade at the floor of the exchange; this can be easily facilitated by a currently registered stock broking firm, Trading in the secondary market is done via stock brokers. You are charged commissions for every buy and sell that is done on their behalf. This is one of Secrets Of Successful Traders that they have enabled them to consistently make 90% of the wealth available at the floor of the capital market

A CURRENT ACCOUNT WITH ANY BANK

A current account to facilitate your trading, when sales is made in your favour, you need a current account where you can easily pay your crossed checks into, unlike savings account that is not designed to accommodate checks.

A DOMICILIARY ACCOUNT FOR NIGERIANS IN DIASPORA


For Nigerians who resides abroad who are interested trading in the capital market, they can also actively participate. A domiciliary account can be processed for them where deposit of sales can facilitated for them; also, this account enables them to transfer money to Nigeria easily for trading purposes. My organization WINNING ATTITTUDE WEALTH IDEAS ENT as part of our array of investment services handles stock portfolios for Nigerian investors living abroad.


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