What Stockbrokers may not tell you(3)
January 26th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
Speculation
A stockbroker does not tell you as an investor to go for speculation. The simple reason is that speculation is a different game all together. And if you are going for speculation, a stockbroker would want to know to what extent you want to take risk.
Most stockbrokers speculate but he will not tell you to speculate. But if you can take risk, he asks to what extent you wan to go, 20 per cent risk; 30 per cent; 50 per cent. Your answer to this will tell the stockbroker to what extent he can advise you to take risk because when you are speculating it can be either way. It can be in a quality way whereby you can make quick income and it can be other way round. The most important thing is that your stockbroker will not tell you to go for speculation unless you decide on your own.
Also, a stockbroker will not tell you precisely that this company is declaring a bonus unless it is announced. It is part of the ethics of the profession that you don’t go for all this hear say when you have no justification about it.
Though, we have not started applying the law against insider dealing. Very soon, anyone who wants to outsmart the market, the market would be dealing with him. These are some of the things that your stockbrokers may not tell you.
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Can you please elaborate on: “But if you can take risk, he asks to what extent you wan to go, 20 per cent risk; 30 per cent; 50 per cent. Your answer to this will tell the stockbroker to what extent he can advise you to take risk because when you are speculating it can be either way”.
I am interested in speculating. The percentage risk in question, is it about how much of my investment I want to risk?
sir,
i really appreciate your newsletter, especially the recent ones.
i rightly observe that fixed return,standard derivation,box holding and speculation on the part of stockbroker was the topic of the day.
as a new investor,and due financial capability, as a fresh graduate,is adviseable for to speculate the ipo or to invest in ipo.
Thanks for teaching those of us that are just coming up as an investor in the capital market all these terminologies.Well I think it is good to speculate based on the information one has.It is also note-worthy to take risk because the higher the level of risk the higher the returns of profitability that will follow.In every business decision there is some element of risk taking.