Trading in the Nigerian stock Exchange is a rewarding and exhilarating experience, like any Stock market in the world. The idea of trading in stock has become a general accepted way of making money.
What is Stock?
How To Trade In The Nigeria Stock Exchange
The Duty of Your Stock Broker: Your Brokers will help you open a CSCS (Central Securities Clearing System) account which in turn would make it possible for you to buy stocks, you may not be able to buy stocks on your own; you have to go through your stock brokering firm.
If you are buying from the primary market, that is the one that the company advertises directly, in filling the forms, you must state the name of your stock broking firm and your CSCS account number. So, you must have a stock broker even if you are buying from the primary market.
For the secondary market, you must inform your stock broker, who will then go to the stock exchange and buy your desired stock on your behalf on a regular basis.
The moment you decides to trade in the Nigerian Stock Exchange, you are becoming an investor. Therefore, you will need investor’s account. An investor’s account is an account that is unique and tied to your name as an investor. It is normally opened for you along with a CSCS account with which your stocks would be moved in. It is opened for you by the stock brokerage firm or broker whom you have assigned to act on your behalf. All transactions done on your behalf would then be recorded against your name in your investor’s account.
Each time your broker wants to buy stock on your behalf, he buys it into your investor’s account. The account is for both equity and bonds.
More than anything else, knowledge is your power in this business. You must be in the know, constantly updating your knowledge of the market and be in-tune with the latest trends. You must be good at spotting opportunities and possess the ability to predict trends.
“Buy the rumours and sell the news”. That’s a very popular saying among investors. It means – Do not trade on sentiment.