Ogbuotobo Chuks

Your ability to survive and make giant strides in the stock/ money market largely depends on what you know. This knowledge only comes where personal sacrifice collides with intense research. Seek to educate yourself. It places you in a better position not to be ignorant. In stock investing, “what you do not know will hurt, burn,& … you”.

Below are some tips for prospective and existing investors.

• Have a passion for investment. This is what urges you to go further. Passion is the fuel required for a sound investment success.
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• You cannot be right always. Stock investment is risky, and you only progress based on the level to which you mitigate the risks involved.
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• Know your time frame. Are you long term or short term? Knowing which class you belong to helps you identify stocks pertinent to your expectations.
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• You must loose to win. As ironical as it sounds, at one time or the other, you will make losses. Think of such losses as tuition fees for learning and as such, do better next time.
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• Handle your emotions. The stock market pays allegiance to rules and not your emotions. Always hope for the best and expect the worst.
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• Keep track of your investments. Always buy/ get access to newspapers and relevant resources so as to track your investments and the market. Life is all about the animal instinct. Learn to read charts and tables and don’t swallow all you hear from your peers.
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• It’s cheaper than you think. With as little as N2000, you can start investing in Nigeria. Do not wait until you have millions, because nothing moves until you move.
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• As much as possible [for new investors], avoid speculative areas such as low priced stocks, options and foreign stocks because they are volatile.
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• Go for quality and not quantity. Concentrate on a few high quality stocks, instead of twenty or more stocks. It makes you more focused.

• Learn to extrapolate. Consult the past and present, in order to predict the future. Examining past performance- earnings, profit, dividend etc, and matching them with present indices will help you envisage the future destination of the company.

THINK AND ACT…

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This entry was posted on Sunday, October 8th, 2006 at 1:58 pm and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. Tags: Investment
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