Can you turn 500,000 into 2 million within a year with stocks

[kenebobo]

I just felt I should ask the members of the house if their investment strategy can turn 500,000 into 2 million Naira within a year. I have a friend who Just did it though his is a bit longer than a year( 1year and three months).

I feel its luck but he told me that for me to do thesame I should avoid investing into blue chip companies cos they dont give Nice profit. Isnt it too risky?

[billions]

Originally Posted by kenebobo

I just felt I should ask the members of the house if their investment strategy can turn 500,000 into 2 million Naira within a year. I have a friend who Just did it though his is a bit longer than a year( 1year and three months).

I feel its luck but he told me that for me to do thesame I should avoid investing into blue chip companies cos they dont give Nice profit. Isnt it too risky?

well,its possible to achieve a 300% growth in a year it depends on the performance of the companies selected and the crowd psychology.

however,i do not target such growths ..it comes with too much risk.

the higher d risk,d higher d return and d higher d possibility of lossing all ur money.

capoil moved from a price of 40kobo on 30/05/2007 to a price of N17.50k on 14/02/2008...an appreciation of 4275% in less dan 10 months.

if 500k was invested in d above company it would hv grown to abt 22m in less dan 10 months.

...but where is capoil today?

[Monwowo]

@Kenebobo

Is your friend just buying and holding or actively trading (swing type) with the money?

The result looked good with or without luck. And what is luck anyway? Luck = opportunity taken at the appropriate time (or otherwise stated as marriage of preparation with opportunity).

[kenebobo]

Originally Posted by Monwowo

@Kenebobo

Is your friend just buying and holding or actively trading (swing type) with the money?

The result looked good with or without luck. And what is luck anyway? Luck = opportunity taken at the appropriate time (or otherwise stated as marriage of preparation with opportunity).

he is an active trader. He buys and keeps it for between six to one year before selling.

@billions
I quite agree with you, the higher the risk the higher the possibility of making and losing money. I am actually targeting a 200% rise in my trading capital. But with the bearish trend of the market I dont know possible it would be. Anyway God help us all.

[billions]

Originally Posted by kenebobo

he is an active trader. He buys and keeps it for between six to one year before selling.

@billions
I quite agree with you, the higher the risk the higher the possibility of making and losing money. I am actually targeting a 200% rise in my trading capital. But with the bearish trend of the market I dont know possible it would be. Anyway God help us all.

i am working towards a minimum of 50% growth and i hv grown it by abt 28% now.

I will be pleasantly surprised if i am able to grow d total worth of my portfolio by 100% dis yr.

....i dont see how dis yr will be as good as last year with respect to returns from d stock market.

[zainabusman]

Originally Posted by billions

i am working towards a minimum of 50% growth and i hv grown it by abt 28% now.

I will be pleasantly surprised if i am able to grow d total worth of my portfolio by 100% dis yr.

....i dont see how dis yr will be as good as last year with respect to returns from d stock market.

I think getting 100% in this market will be a tall order. Except of course if u have some PP's that will be listed soon and u can take out ur gains.

[Apache]

Originally Posted by billions

i am working towards a minimum of 50% growth and i hv grown it by abt 28% now.

I will be pleasantly surprised if i am able to grow d total worth of my portfolio by 100% dis yr.

....i dont see how dis yr will be as good as last year with respect to returns from d stock market.

28% growth Is this Year-to-date growth? Omo! you are too much. I have a miserly YTD growth of 1.1%. Of course, I measure this by comparing it with the price of the stock as at Jan 2nd 2008. Even the ASI is at 4% growth.

[hispy99]

Originally Posted by Apache

28% growth Is this Year-to-date growth? Omo! you are too much. I have a miserly YTD growth of 1.1%. Of course, I measure this by comparing it with the price of the stock as at Jan 2nd 2008. Even the ASI is at 4% growth.

The guys is three much, I have roughly matched the ASI YTD

Make we dey see sha....

[olusolakemmy]

Originally Posted by kenebobo

he is an active trader. He buys and keeps it for between six to one year before selling.

@billions
I quite agree with you, the higher the risk the higher the possibility of making and losing money. I am actually targeting a 200% rise in my trading capital. But with the bearish trend of the market I dont know possible it would be. Anyway God help us all.

200%, you are close to your guy that made 300%!!!!!!!!!!!!!
infact you are both under the same risk category.

[BLUEMONEY]

Originally Posted by zainabusman

I think getting 100% in this market will be a tall order. Except of course if u have some PP's that will be listed soon and u can take out ur gains.

A tall order indeed. even the newly listed companies dont rally much unlike when the bull was around.

[kenebobo]

To add more to what I have said, there are some other strategies which my friend uses. He Doesnt buy banks cos they dont give nice profit. He invests into companies that their capitalization is below 50billion Naira cos according to him all the stocks that have given generous rise in the past fall into this category.

[Monwowo]

I can see your friend being that successful partly with the last year bull with the type of stock he invested in. I recently asked a question under the technical/fundamental analyses thread which no one answered to about stocks that has good "breathing" pattern (swing). If one could identify such stocks I do believe that with some decent capital, one could make a decent return. I am still new at following the ASI and the listed stocks, but I have seen that some stocks have good swings to allow pretty good trade: 7UP (51 to 59), Ashaka (40 to 47 or 48), Beta glass (22 to 27), MB assurance (4 to 5.5). The price ranges were the recent support and resistance, except that Ashaka broke its support to 39 or so today. A trading scenerio:

7UP
51 x 5000units = 255, 000
58 x 5000 = 290, 000
difference = 35, 000
5.1% buy and sell commission = 14, 790 (I did this with the 290,000 sale price)

Gain = 20, 210 (about 12.6%)

I have seen these stocks do these swings few times this year. Do gurus in the house think this is a VIABLE trade? My only concern of course was getting a good stockbroker since you need to be able to do prompt buy and sell (with good limit/stop orders), or else you have to loose some gain or wait for another swing.

Please gurus' comments/feedbacks

[billions]

Originally Posted by Apache

28% growth Is this Year-to-date growth? Omo! you are too much. I have a miserly YTD growth of 1.1%. Of course, I measure this by comparing it with the price of the stock as at Jan 2nd 2008. Even the ASI is at 4% growth.

Massive buying of some public offers was central to my investment strategy towards d end of last year and many of d stocks i bought did well after technical suspension was lifted dis year.

public offers contributed abt 18% to the total growth while the remaining 10% was due to secondary market trading activities.

my money was returned in some but not it all d public offers.

[billions]

Originally Posted by zainabusman

I think getting 100% in this market will be a tall order. Except of course if u have some PP's that will be listed soon and u can take out ur gains.

u r right brother but i am not awaiting any PP's.

like i said b4 a 100% growth is far from my target.

[billions]

i took another look at the market yesterday and it was just too obvious dat d bears hv torn apart d 28% growth.

i dont even want to calculate wat growth is left...i am really really getting tired of dis free fall of prices as if its under influence of gravity.