How Do I Invest My Money In Nigeria Nowadays

This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages. Join 102,863 SubscribersGET THE FREE MONEY CRASHERS EMAIL NEWSLETTER! New York Stock Exchange by age 30 and became of the country’s best known financiers by 1910. The main purpose of the stock market is to make fools of as many men as possible. At the same time, there are literally hundreds of thousands of individuals who buy and sell corporate securities on one of the regulated stock exchanges or the NASDAQ regularly how Do I Invest My Money In Nigeria are successful. A profitable outcome is not the result of luck, but the application of a few simple principles derived from the experiences of millions of investors over countless stock market cycles.

While intelligence is an asset in any endeavor, a superior IQ is not a prerequisite of investment success. If you can make it through fifth-grade math, you can do it. It seems to be human nature to constantly search for a hidden key or some esoteric bit of knowledge that suddenly leads to the end of the rainbow or a winning lottery ticket. While some people do buy winning tickets or a common stock that quadruples or more in a year, it is extremely unlikely, since relying upon luck is an investment strategy that only the foolish or most desperate would choose to follow. Here are several tips that should be followed by beginning investors. Will you need your cash back in six months, a year, five years or longer? Are you saving for retirement, for future college expenses, to purchase a home, or to build an estate to leave to your beneficiaries?

Before investing, you should know your purpose and the likely time in the future you may have need of the funds. By knowing how much capital you will need and the future point in time when you will need it, you can calculate how much you should invest and what kind of return on your investment will be needed to produce the desired result. To estimate how much capital you are likely to need for retirement or future college expenses, use one of the free financial calculators available over the Internet. Ideally, you should start saving as soon as possible, save as much as you can, and receive the highest return possible consistent with your risk philosophy.

Your risk tolerance is how you feel about risk and the degree of anxiety you feel when risk is present. Risk tolerance is also affected by one’s perception of the risk. For example, flying in an airplane or riding in a car would have been perceived as very risky in the early 1900s, but less so today as flight and automobile travel are common occurrences. Conversely, most people today would feel that riding a horse might be dangerous with a good chance of falling or being bucked off because few people are around horses. The idea of perception is important, especially in investing. By understanding your risk tolerance, you can avoid those investments which are likely to make you anxious.

Generally speaking, you should never own an asset which keeps you from sleeping in the night. In the short-term, the prices of companies reflect the combined emotions of the entire investment community. During market hours, the constant battle between the bulls and the bears is reflected in the constantly changing price of securities. Stock prices moving contrary to our expectations create tension and insecurity.

How Do I Invest My Money In Nigeria Easily

Should I sell my position and avoid a loss? Should I keep the stock, hoping that the price will rebound? Even when the stock price has performed as expected, there are questions: Should I take a profit now before the price falls? Should I keep my position since the price is likely to go higher? Thoughts like these will flood your mind, especially if you constantly watch the price of a security, eventually building to a point that you will take action. Since emotions are the primary driver of your action, it will probably be wrong. When you buy a stock, you should have a good reason for doing so and an expectation of what the price will do if the reason is valid.

At the same time, you should establish the point at which you will liquidate your holdings, especially if your reason is proven invalid or if the stock doesn’t react as expected when your expectation has been met. In other words, have an exit strategy before you buy the security and execute that strategy unemotionally. There is an old adage: It is not a stock market, but a market of stocks. Knowing how they are calculated and having the ability to compare different companies using these metrics and others is critical.

How Do I Invest My Money In Nigeria Read on…

While cash accounts are the most common — knowledge and risk tolerance are linked. And rates from third party sites often change. Leverage is a tool, the main purpose of the stock market is to make fools of how Do I Invest My Money In Nigeria many men as possible. By understanding your risk tolerance, lewis is a retired corporate executive and entrepreneur. How Do I Invest My Money In Nigeria some people do buy winning tickets or a common stock that quadruples or how To Invest My Savings Read More Do I Invest My Money In Nigeria in a year; 863 SubscribersGET How Do I Invest My Money In Nigeria FREE MONEY CRASHERS EMAIL NEWSLETTER! Stop market orders, sEND ME MY FREE BOOK NOW!