Since the completion of Nigeria’s banking consolidation, investing in stocks or stocks has become increasingly popular. The Nigerian stock market is rated as one of the best in the world in terms of returns, which is reflected in average annual returns.
Research shows that forty-two out of four hundred and fifty billionaires in the world made their fortune through stocks and shares and most of them, including the first, second and fourth richest man in the world, keep their money through stocks and shares.
You buy ownership of a company when you buy the company’s common stock. This gives you the opportunity to grow your net worth through dividends, bonus spending and capital appreciation. All investment decisions are interest rate sensitive.
WHAT IS A SHARE?
A share is a certificate representing a percentage of ownership in a company, expressed as a number of shares. Of course, the ownership percentage depends on the number of shares outstanding. A share therefore represents your interest as an investor in a company.
21 TIPS FOR A SUCCESSFUL PARTICIPATION
1. Research before you invest.
2. Know when to buy. Every stock has its lows and highs. Therefore, you need to know exactly when to buy the stocks and make profits.
3. Know when to sell. You know when to sell the stocks you’ve bought. Don’t hold the shares any longer than necessary.
4. Know how to use company news in the media to buy the best stocks or sell the stocks you have bought.
5. You need to understand how earnings per share affects stocks positively and negatively.
6. Don’t invest blindly. You should understand and know why you are investing in the stocks you have decided to buy. You have to be sure of what you’re doing.
7. Your investment in the stock market should have capital appreciation and bonuses as its primary objective. When choosing a stock, consider the stock’s bonus and price appreciation history.
8. Knowing when to enter, when to hold and when to exit the market. Don’t let greed burn your fingers.
9. Don’t sell a stock because the price is falling, sell it because you know why the price is falling.
10. Never buy a stock on a date after the register has closed. It will not be wise to do so.
11. Avoid sentimental stock purchases. In the stock market, if you need to succeed in your business, you need to rule out sentiment.
12. As an investor, you need to make both short-term and long-term investments.
13. You need to diversify your investment. This spreads your risk.
14. You must have this principle of not buying a stock you don’t intend to hold for an extended period of time. Make sure any stocks you invest your money in are stocks you can hold for a long time.
15. Have an exit strategy. Don’t be greedy. Quit if you accept it. Greed has caused many people to burn their fingers.
16. Always make sure the investment you make at each point will allow you to sleep with your eyes closed at night. Make sure you take calculated risk when investing in the market.
17. Always seek expert advice when investing
18. Never follow the crowd to invest. Make sure the stock you’re investing your money in is worth it. It’s not every public offering you should buy. If you must buy, then you must know why you are buying.
19. Stop trading with stockbrokers who are untrustworthy.
20. Learn how to use the company’s financial report to examine the performance of your stocks.
21. Patience is required for success in investing. Do not be in a hurry to make quick money so as not to burn your fingers.