Investment Education In Nigeria

[Niaraquest]

I am a financial training consultant based in New York and I want to do a training need analysis of Nigerian Stock Brokers in particular and investing public at large, any advice on where to start, or does anybody think there is a training need in financial investment education in Nigeria?

Thanks all

[c kenneths]

Originally Posted by Niaraquest

I am a financial training consultant based in New York and I want to do a training need analysis of Nigerian Stock Brokers in particular and investing public at large, any advice on where to start, or does anybody think there is a training need in financial investment education in Nigeria?

Thanks all

There is always the need for more training, however the response from the largely non investing public will be weak. for one, our youths dont believe there is a future in investing and secondly the last crash sent the few fledging investors scamperig to safety. All licking their wounds and managing their burnt fingers.

[nosa2]

The problem with educating someone about investments, particularly stock market investment, is that all the training becomes worthless once the student has his hard earned money involved. The emotions that one goes thru cant be taught they have to be experienced. That being said i do believe there is a market/need for education of the masses on other types of investment vehicles. I'm personally interested in learning about the futures market.

[willhenry123]

Originally Posted by c kenneths

There is always the need for more training, however the response from the largely non investing public will be weak. for one, our youths dont believe there is a future in investing and secondly the last crash sent the few fledging investors scamperig to safety. All licking their wounds and managing their burnt fingers.

I think another disturbing factor is the fact that our NSE trading system is outdated...
Youths(our future generation) are more enchanted with globalization..things like IT, the internet,etc..
I mean why cant Nestle shares be traded online just like the Dow jones?
That is why more people get interested in FOREX nowadays..
If the NSE can modernize, and then, education wil then be welcome...

Just my honest opinion

[stance]

I am intrested in the training. I am one of the youths that strongly believe in investments, and put my best. The training will go a long way for me, I have a lot to learn, but I hardly get a reply in this forum, guess its cos I have nothing to offer, but I have learnt a lot here. If u decide to hold the training, pls invite us here.

[nosa2]

Originally Posted by stance

I am intrested in the training. I am one of the youths that strongly believe in investments, and put my best. The training will go a long way for me, I have a lot to learn, but I hardly get a reply in this forum, guess its cos I have nothing to offer, but I have learnt a lot here. If u decide to hold the training, pls invite us here.

Exactly what questions have you asked that have not been answered? As i stated earlier I dont believe in teaching someone how to invest in the market, its best to guide them (thou they probably wont listen due to greed) then after they've (hopefully) made and (definately) lost a fortune they'll understand the dangers. My advise to you is take say 50k then start trading you'll probably turn it into 100k in no time then you'll feel like a genius but would probably end up watching that 100k end up as like 15k, once this has happened you can consider yourself a "guru"

[willhenry123]

Originally Posted by nosa2

Exactly what questions have you asked that have not been answered? As i stated earlier I dont believe in teaching someone how to invest in the market, its best to guide them (thou they probably wont listen due to greed) then after they've (hopefully) made and (definately) lost a fortune they'll understand the dangers. My advise to you is take say 50k then start trading you'll probably turn it into 100k in no time then you'll feel like a genius but would probably end up watching that 100k end up as like 15k, once this has happened you can consider yourself a "guru"

Hahahaha,....oga nosa,always dropping the hammer red-hot......take it easy nah

Like u said,no one is a professional. We all learn continually..

[Niaraquest]

Thank you all for your responses, as i read those responses, especially that posted by Nosa I begin to see the urgent need for investment training.

Trading on the capital or money market is not like trading on Ariara market in Aba or the famous Onitsha market where you can just walk in and start buying and selling.

Trading financial products require good product knowledge, good technical/fundamental analysis, it requires good understanding of risk and how to hedge them, and it requires understanding the effects of diversification, etc, etc

My advice to those wanting to trade futures and other derivatives is to define the scope, are you going to trade on index futures, commodity futures or currency futures, or every one of them? While derivatives do not involve initial cash outflow (like futures and swaps,) or minimal cash flow (like options) the downside risk can be overwhelming (depending on what side if the bet you take) to the ill informed.

Nosa please note that there is nothing like investment guru, every investment decision is based on projections that are in turn based on assumptions about the variables that drive investment outlooks and performance. Please read the treatise on Long Term Capital Management called “When Genius Failed: The Rise and Fall of Long-Term Capital Management “and you will see that there are no gurus in investment. This investment failure involved the man whose formula is used to value and price options on Wall Street and the entire world, the famous Black Scholes option pricing model.

[nosa2]

Originally Posted by Niaraquest

Thank you all for your responses, as i read those responses, especially that posted by Nosa I begin to see the urgent need for investment training.

Trading on the capital or money market is not like trading on Ariara market in Aba or the famous Onitsha market where you can just walk in and start buying and selling.

Trading financial products require good product knowledge, good technical/fundamental analysis, it requires good understanding of risk and how to hedge them, and it requires understanding the effects of diversification, etc, etc

My advice to those wanting to trade futures and other derivatives is to define the scope, are you going to trade on index futures, commodity futures or currency futures, or every one of them? While derivatives do not involve initial cash outflow (like futures and swaps,) or minimal cash flow (like options) the downside risk can be overwhelming (depending on what side if the bet you take) to the ill informed.

Nosa please note that there is nothing like investment guru, every investment decision is based on projections that are in turn based on assumptions about the variables that drive investment outlooks and performance. Please read the treatise on Long Term Capital Management called “When Genius Failed: The Rise and Fall of Long-Term Capital Management “and you will see that there are no gurus in investment. This investment failure involved the man whose formula is used to value and price options on Wall Street and the entire world, the famous Black Scholes option pricing model.

I'll definately get the book. I'm interested in index futures and especially commodity futures and I've found some courses in the uk that I can take my problem is that i dont have the time if i can get something here in Lagos or even online i'll definately be interested. By the way i was being sarcastic when i used guru

[Niaraquest]

We have mapped out series of training for the Nigerian market, based however, on the outcome of the training need analysis. We will be having training on

Derivatives
Options
Futures
Swaps/Swaptions
Currency Forwards
Fixed income
Bonds
Convertibles
Treasury Instruments

Financial Mathematics

Investment Performance Analysis

Equity Valuation and Analysis

Etc

Most of these training will be held in Lagos/Ph. When they are scheduled I will let people Know. There are a some places that offer on line classes here in the US, not sure if it will be easy for you guys to get to pay in $s, but if there are enough interest (in terms of the number of people), I can arrange for the training to be done through my company with you guys paying in Naira

[stance]

@ nairaquest, I am looking forward to the seminar, don't forget to inform us here.

@Nosa 2, I have got a reply to only one of my posts after some other guy complained that you guys wouldn't answer me. But generally I have learnt a lot from this forum, I come here more than five times every day. Though I dont buy all the stocks recomended here, you guys have given my thinking a direction, which has really helped me.

[MalamImam]

Mancession refers to a situation when the unemployment rate is substantially higher among men than women. Coined during the recent global economic meltdown, this term is spreading like wildfire!

[nblinks]

I will like to be part of the seminar too.

[Picolena66]

Growth Investing Checklist

By Charly Travers and Nate Weisshaar

Do look at cash flow

Cash is a company’s lifeblood and if it stops flowing, the company dies. A lot of investors focus on earnings, but earnings can be easily manipulated and may not accurately reflect the strength of a company’s operations. Cash flow (while still not perfect) provides investors with a better picture of a company’s health.

Don’t ignore the balance sheet

The world is a tricky place and even the best business plan can run into trouble. A company with a strong balance sheet can better handle life’s surprises and get back on the road to world domination. Heavily indebted companies have much less flexibility and can be dragged down by creditors if times get tough.

Do look for innovation

While large companies have advantages of brand name recognition, strong balance sheets, and industry leadership positions, they can also be bloated bureaucracies that are slow to respond to a changing competitive landscape. Small companies led by visionary management have the ability to quickly create new technologies and products, making them the great companies of tomorrow.

Do control your emotions

Investors are their own worst enemies due to their tendency to make emotional decisions instead of using a rational process. This leads to getting scared out of owning shares when they’re falling, even though that is often the best time to buy.

Don’t rely on past performance

Few things in this world are guaranteed (just ask pension managers with Greek bonds in their portfolios) and three years of 30% earnings growth are unlikely to be repeated (if only because it gets harder to grow as you get bigger) and profit margins above 20% are very difficult to sustain (competition and inflation are two obvious threats). Investors need to recognize that they are buying into a company’s future and to evaluate shares accordingly.

Do consider market potential

It is easy to get sucked into a great growth story, but as investors we want to be sure we’re not being told porky pies. A company’s growth potential is ultimately determined by the size of its end market, so investors need to get a grasp on what a company’s end market is and how much room is left to run.

Do write down your reasons for buying shares

Investors should have clear reasons for buying shares in a company and clear guideposts for evaluating that company’s performance. Writing these down at the time of purchase can make holding shares in times of market volatility much simpler. Having a set of metrics against which to judge a company, you can block out the noise of day-to-day market movements and keep an eye on the long term. It also makes selling decisions easier – if a company isn’t living up to your expectations, it may be time to cut the shares loose.

Don’t overpay

The fastest way to turn a phenomenal company into a miserable investment is to get swept up in the excitement of a rapidly rising share price and pay more for the shares that the business could ever possibly be worth. Don’t get sucked into buying sprees. Time is your ally. Make a watch list of companies you own and sooner or later you’re likely to get a great buying opportunity on every one of them.

Do think long term - My Favourite

Shares are not lottery tickets where you make your fortune in an instant. They are instruments for building your wealth over decades. Buy shares and let the company increase in value steadily over time.

Do diversify

You wouldn’t bet all your money on a single hand of poker and you shouldn’t do that with shares either. Owning at least 15 different shares will lower the risk level of your portfolio and keep any single share from destroying your savings if a company falls on hard times.

The Foolish Bottom Line

Investing is equal parts art and science, and there’s certainly not a one-size-fits-all approach. But with the right timeline and temperament, backed by sound stock-picking, the market is a great source of wealth generation.

I hope you found some actionable advice above, whether you’re a growth investor, an income investor, or ideally a little bit of both. Please stay tuned for an upcoming Collective dispatch in which I’ll provide my take on how to think about the income portion of your portfolio.

Until next time,

[Picolena66]

Hello there,

I did not where to post this, because I did not know where it would fit in

But for all the newbiees out there mediocre Investors like myself

I hope u find this Very useful in todays Markets.......I know I did

Kind Regards

ps - Oga if u feel it should be posted else where pls do tell

5 Ways To Lose Money On Shares - 08/11/2011
__________________

Found where this should been posted

[EIC]

Hi Picolena66,

Thanks for your contributions.

For copyrighted articles, it is permitted to quote a small portion of it, or to put a link to it , rather than copying and pasting it in its entirety on this site.

Thanks.

Originally Posted by Picolena66

Growth Investing Checklist

By Charly Travers and Nate Weisshaar

Do look at cash flow

Cash is a company’s lifeblood and if it stops flowing, the company dies. A lot of investors focus on earnings, but earnings can be easily manipulated and may not accurately reflect the strength of a company’s operations. Cash flow (while still not perfect) provides investors with a better picture of a company’s health.

Don’t ignore the balance sheet

The world is a tricky place and even the best business plan can run into trouble. A company with a strong balance sheet can better handle life’s surprises and get back on the road to world domination. Heavily indebted companies have much less flexibility and can be dragged down by creditors if times get tough.
....

[Picolena66]

ok noted

[Picolena66]

Profit From Patience - 27/01/2012

[Picolena66]

Hmmmm...........A True Food for Thought about keeping your investments Globalised

Why My Portfolio Is Globalised - 31/01/2012

[Picolena66]

Hmmm............The Sage as Done it Again

You Can Invest Like Buffett, Too
A Fool's view of Warren Buffett's approach.

http://www.fool.co.uk/m.aspx?i=25214960&u=209558971