You can make megawealth in the stock market; you can also lose money- big time. Learn the secrets for profitable investment in shares.

FIRST RULE
The first rule for success in the market is to master your emotions when you are taking decisions on the money you want to put or you have put in the stock market. NEVER GET EMOTIONAL ABOUT YOUR INVESTMENTS
The stock market those not care who you are and what you do. You must be cold blooded when you are deciding to select a stock in which to put your money. The stock market has a life of its own. It follows a certain set of rules and if you violate these rules , you will burn your fingers. Most people invest in some shares just because others are buying the shares. This is not a good enough reason to invest in stocks.

SECOND RULE
Take personal responsibility for the shares you invest your money in
You should be personally responsible for the shares you invest your money in?. It is amusing that when people want to buy cars, they ask all the necessary questions. They decide ahead the make of the cars they want, the age, the engine capacity , even the colour? But when it comes to investing in shares, they go in without any pre selection criteria. You should set the rules to guide you on the company to pick and you should set another rules to guide you on when to bail out of that share if it is no longer meeting your criteria. A lot of investors get so sentimentally attached to a stock that they refuse to act if the share price if falling and by implication watching their money go down the drain. This is financial illiteracy at its best. I wonder why people can’t take a decision on the company if it is not giving them the result they expect. The way to be a wise investor is that even if your father is the chairman of the company in which shares you put your money, take a firm decision if the share is not giving you the expected result.
Setting entry and bail –out rules is particularly very important. Do your due diligence on any company you want to invest in before you part with your money. There is nothing that says that you must invest your money if you don’t have a good company to buy. It is your money. It is your life. You should be the chief executive officer of your financial future.

THIRD RULE
What are your investment objectives. What do you really want from the stocks that you are investing in.You must articulate your investment objectives ever before you spend a kobo on shares. I find it amusing that people would invest their money without first establishing clear objectives they want to achieve.

[list]
[li]What is it that you want to achieve?
Is it to make quick money from your investment in shares (speculation)?
Is it to prepare for your financial freedom ?
Is it to become a shareholder in the company one day?
What is your appetite for risks?
Are you a conservative investor who want to play it safe like that man in the parable of talent who hid his master’s money in the ground?
Is the money you are investing the one you can afford to lose?[/li]
[li][/li]
[/list]
There are a thousand and one questions you must ask and answer as clearly as possible before you approach your stockbroker to buy shares on your behalf. Your objective should guide you on which stock to put your money. Don’t copy your friends to set your investment objectives because you don’t have the same realities. Decide whether you are investing for long term or short term. There are strategies that go with the two investment horizons. Without clear objectives you would be confused about the movement in share prices. So setting clear objectives should be the starting point for anybody who wants to play the stock market profitably. Doing otherwise would amount to courting disaster.


FOURTH RULE

Set the entry and exit criteria.

The stock market follows some rules and only those who have taken their time to study the rules can hope to profit from the market. Many people burn their fingers because along the line, they get greedy. They always hope that the price of the stock they invest in would go further up tomorrow or would stop the slide the next day. So they keep watching until their valuable investment turns into a mere piece of paper. This is how wise investors behave. They are comfortable with making small profits regularly and cutting their losses quickly . A stock broker once told me that,he does not expect to make more than 30 per cent return on my investment in shares. So any time his stock hits a 30 per cent return he sells immediately, wait for another opportunity to buy cheaply. If it is in the same stock , he watches it again, once hits between 20 per cent and 25 per cent he sells. With this, he believes he can achieve more than 100 per cent return in a particular stock in one year. But to be successful in this strategy you must know the stock you are investing in inside out and be able to predict its cycle.
He also gave the other side of the rule:- The other side of this rule is that he would never allow the stock he holds to fall below 8 per cent before he sells, no matter the reason for falling. This is the only way to minimize losses and still be left with something you can invest some other time. That is why I encourage you to take personal interest in any stock you want to buy. Educate yourself. Know the company that issues the shares. Analyse their annual reports. Know what is going on inside the company. As one of my friends put it, you must know as much information on the company as if you are a director. Invest in educating yourself today.
Don't be greedyyyyyyyyyyyyyyy

Would share some other freelance tips with you all later.
Godspeed

Hi man thanks for the information.

yeah thanks man ,this is straight to the point post .

Hey freelance, thanks so much. that wasn't information it's love.
Only GOD can bless u. Keep on keeping on & GOD would bless u the more.

@ topic
that was really educating.
i have just inherited some money and i really do not know what i should put it into while i finish my masters degree.
can i get in touch with you personally if you can introduce mr to a reasonable stockbroker, mine does not have the appetite for risk
i want the money to grow by at least 35% and be ready for me when i hopefully come back home to set up a business or something.
my email is de_tayomartins@yahoo.com or 0609002@rgu.ac.uk
thanks and i would be expecting your mail or reply.
adetayo

can i get in touch with you personally if you can introduce mr to a reasonable stockbroker, mine does not have the appetite for risk

That means he is a sensible stockbroker. He doesn't want you to waste your money. Please try to calm down: the money is not going to fly away if you don't spend it! Calm down and invest in reliable ventures only.

leaving the money in a bank will also not be too good considering the "TIME VALUE OF MONEY"
i want somethong which is fair on both sides (risk and opportunity).
bank rates are too low and i do not want to do long term investments( i am just 24),
we are talking of about 7 figures here
the stockbroker/dealer should be able to buy ie 100,000 units of oando and sell to buy sth else therby trading with the money and increasing it instead of just investing in just one or two stocks and waiting for dividend and bonus shares.
i[b] hope now you understand my idea of risk[/b].
thanks

Thanks man, that is classified information that even university education can not give. But let me ask you a guestion. Are you in any way a stockbroker? if you are prechance how do we get in touch with you? Anxiously waiting.

Wow! Thanks a lot for the information my brother. It's God that sent you to write this.
I need more information from you as I intend buying shares soonest.

the stockbroker/dealer should be able to buy ie 100,000 units of oando and sell to buy sth else therby trading with the money and increasing it instead of just investing in just one or two stocks and waiting for dividend and bonus shares.

What your stock broker is practicing is known as value investing and it's how Warren Buffet made his billions.

Hi,

Thanks a lot for the information about stocks. Its good information and I will like to invest soon.

@freelance, good info. You have captured the basic principles of investing in the stock market. The moment you buy a share of any company, you become a part owner of that company.

The whole world is right in front of us in the form of ''internet''. There are lots of well researched and documented reviews of various companies in the NSE. Sites like ""research.ibtc.com, www.portfolioinsight.net,www.expresson-line.com, will make you a much better informed investors if you avail yourself of information provided therein.

In addition, a prospective investor should pay close attention to government policies with regards to a particular sector of economy. Bank consolidation, Ban on cement importation, Nafdac war on total eradication of fake drugs e.t.c. The direct and indirect outcome of these policies influence the companies operating in that sector of the economy.

Do your research very well and buy stocks based on fundamentals. even if you are a speculator, you can't loose on a fundamentally good stocks.

Take particular interest in stocks of companies that are bid for takeovers. Such stocks are at their low periods, unfairly priced, battered and bruised. Just research the prospective new owners and take positions fast before the whole market realise what is going on. By the time they do, they will be playing ''catch up'' on you.BCC, WAPCO, CONOIL(2005) are good examples . We all tend to get CAUGHT UP in the euphorias of the moment and buy overvalued and overpriced stocks.

Be proactive. All the best.

i want to say a million thanks to you guys that've devoted your time and effort in passing your knowledge to others without any material benefits.i bought some union bank shares in january and uptill now,i have not received the share cert. my agent  has been calling me to invest in intercontinental bank but i have cloud of doubts,since i have not seen any results so far.i will like to give a trial on the dangote sugar stock mentioned by EBONY9JA in other positings,but since i am not living in nigeria,i will be losing about 10% of any amount i am sending home to invest,is still worth it?thanks once more

@HBREDNIC

The late release of union bank ipo certificate is not peculiar to your case. Its thesame with me. The certificates are just being released piecemeal. I know lots of investors that have not got theirs. so dont be alarmed, I am sure you will get it. Please note that union bank case is just peculiar , its not thesame with other banks.zenith did their IPO after union bank and the certificates have since been released .

Concerning intercontinental, I will advise you to buy if you want to. The MD, Erastus Akingbola, has promised prompt release of certificates to investors early next year. He also assured investors that they will benefit from the dividend for the CURRENT financial year ending feb 28th, 2007.

since you will be buying an IPO, you only have your 10% transfer induced cost to lose. IPOs are generally issued at a discounted price anyway, so you are still getting a bargain of more than 10%. I cant predict the movement of Intercontinental price after the completion of the IPO,since a lot of reseach firm are putting a ''sell'' order in the short term and ''buy '' order for the long term. However, I am positive you will gain your 10% back in no time if you put your money in Dangote. This is the first time they will be coming to the market, and I can tell you the market and investors will respond very well to the proposed dividend of N1.

Buttom line: BUY DANGOTE, INSPITE OF THE 10% REDUCTION IN THE VALUE OF YOUR MONEY. YOU WILL GAIN IT BACK FASTER THAN YOU THINK.

all the best.

@hbrednic,
To further allay your fear over the union bank certificate, here is a excerpt from ''moneywise'' on the same issue.

''Union Bank of Nigeria Plc - Public Offer & Rights Issue.
Posted Monday, November 13, 2006
Dear Editor.

Many of us bought Shares in Union Bank of Nigeria Plc Public Offer & Rights Issue in December 2005. In November 2006, no Share Certificate(s) have being received from Union Bank of Nigeria Plc Registrars. This is despite repeated request for these shares.

The above development is in marked comparison with other Banks and Institutions who within two to three months of a public offer, distributes the Share Certificates.

It would be appreciated if your paper can assist us to make inquiries from Union Bank of Nigeria Plc especially when their share prices have continued to drop in the stock market.

Thank you.

Ehijeagbon O. Oserogho, BL, ACTI
Business Solicitor & Notary Public
ehioserogho@hotmail.com


all the best.

thanks EBONY9JA for the insight on the union bank shares,i will definitely buy the dangote ipo and wait for the best,thanks once again for your advice,sorry for my late reply is cos of time difference.godbless

Thanks alot for the information, it feels me with great joy when I realise more and more Nigerians are now interested in investment and in particular stocks. I know it's the right step in the right direction for us all.

thanks so much 4 this informatiobn.pls how much is the minimum amount one can invest in shares?also what advice do you have to give about these new generation banks advertising sale of shares?

hi freelance,
thanks a whole bunch for your posts.
ebony9ja,
you too.

@ Tmoni,
there's no need for to spell it all out here, 7 figures or whatever.
looking for a good stockbrocker is no big deal, pick up a copy of bussinessday or financial standard, leaf through and you'll find loads of good asset management firms with good track records to help you manage your funds. simple!

****i just dont like the slightest smell of yahoo yahoo.****

hey guys , syntax errors,  an IPO is an initial public offer,  subsequent offers are not to be still refered to as "ipo's".
Dangote - IPO
union bank, intercontinental, zeniths etc - PO's (public offers) ,

hmmmm,,,, interesting

That's a good job, thanks for your advise.

Dude, That was str8 D Y N A M I T E. Or better yet C-4 laced with RDX.
(^_^)

Very good post! PLEASE Keep it up!

Now we gotta talk about derivatives and specific strategies!

yea

ebony9ja:

Many of us bought Shares in Union Bank of Nigeria Plc Public Offer & Rights Issue in December 2005. In November 2006, no Share Certificate(s) have being received from Union Bank of Nigeria Plc Registrars. This is despite repeated request for these shares.

i did'nt buy that particular union banks share but i know of ppl who bought it
as at last week, one of them recieved that share certificate
better start checking for your again
on the other hand, u can exercise some patience, when i bought my ibtc share, it took close to 13 months before i got my certificate

@ Tmoni
have u considered the money market?
u could have over 35% increase per annum, and it is much safer that the capital market.
since u are abroad this may be better for you since it does not need as much monitoring as the capital market does

@vizion
"have u considered the money market?
u could have over 35% increase per annum, and it is much safer that the capital market.
since u are abroad this may be better for you since it does not need as much monitoring as the capital market does"

Kindly give detail about d investment bank/finance company that gives over 35% increase per annum in d money market sector,i have interest.

Thanks

:p

hello freelence, tanx a millions for the tips. it not an info; but love. freelence, please i really want to you to in getting the right company to invest whenever any is offering.
thanks.

@vision, in the brotherly spirit of this thread, please explain how money market investments can yield 35% per annum.

Hello freelance  thanx very much Plz i have some money which i dont really know wat to do wit it plz i would want to to tell me wat to do coz am just 21