FOUR FACTORS TO CONSIDER IN CHOOSING A STOCKBROKER OR STOCK BROKING FIRM

As far as the stock market business is concerned, traders and investors need the services of a broker or stock broking house to buy or sell on their behalf or trade on your own by doing it yourself through the online trading platform or portal at any given time to take advantage of market timing and speedy execution of your buy and sell decision under a house. The assistance of a good 

stockbroker can be an essential element in achieving success but doing it yourself with knowledge is faster and more reliable for your financial independent through stock market investment.  The role of brokers in trading stocks cannot be overemphasized as the growth of your income depends directly or indirectly on them. Stockbrokers are specially trained individuals whose concerns are to buy and sell shares for investors at a fixed commission. The statutory commission for stock broking firm is below four per cent on both sides of buying and selling. A regular trader with a volume can negotiate lower to boost the returns and enhance funds management. This commission is regulated by the Nigerian Stock Exchange (NSE) and Securities and Exchange Commission (SEC). Stock broking firms have a fixed rate and what accrues to them on any transaction. The factors below would help you choose a reliable stockbroker:

1. LICENSED/REGISTERED

Make sure that the stockbroker or the stock broking firm is fully registered and licensed by the NSE and SEC to carry out the business of stock trading. A registered stock broking firm will usually be a member of the exchange and with the approval of SEC. Whenever you enter into any stock broking firm, at its reception, you will see the certificates of registration and licensee displayed on the wall. But when this is not displayed on the wall, please have a rethink and walk out of that place. While this is important at the first instance, is that you want to deal with the right people.  If the stock broking firm is licensed it suggest that the company has met the entire requirements.

2. PROACTIVE HOUSE WITH STRONG RESEARCH BACKGROUND

The objective of stock trading and investing is to make money. You need to be in a house where the people are active and informed through their research-based analysis that guides and directs their decisions on what to do in the market at any time.  A stock broking firm knows how to combine different forms of analyses to take advantage of the market before offering a profitable investment advice to their clients. Also, the level of transactions in terms of volume and value to ascertain how forceful the firm is in the market is equally important.

3. RELATIONSHIP

Look for a house that believes in good relationship that drives business, even if it means consulting professionals in the market for a guide to go ahead; a situation where you can have a one-on-one discussion with your broker regardless of the amount you have at that moment. You should feel at ease with your stockbroker since you will be providing personal information about your finances and investment goals. The stockbroker should listen to your expectations and understand your needs. Based on the information provided, the stockbroker can develop an investment strategy tailored to an investor's needs. Make sure you understand the investments recommended to you for purchase. A good stockbroker takes time to explain how any security purchased can fit your investment goals.

4. Online Trading Platform or Portal

That is directly link to the trading floor of the Nigeria stock exchange, were no know third party infer with your order if you have the funds that can cover your transactions. This online trading help you to achieve your investment goal by not waiting or putting your financial destiny in another man hands. In Nigeria market today only 16 brokerage firms have the online portals for their clients to trade on their own, which suggests that new traders or investors should consider this when choosing a stock broking firm. When you do it yourself with skill and knowledge you are ban to win more than loose. 

In the game of life there are two groups of people - those who focus on short term gains and immediate needs even if it means they struggle to reach their bigger goals, and those who are prepared to make short term sacrifices and invest time improving themselves to get the huge improvements for the rest of their life.

By getting the comprehensive short term trading strategies video and materials to guide you, it will be obvious that you are one of life’s winners-it’s a great decision as you are going to improve your investment with new and world class skill that can really fast track your investing and trading success. One of the topics discussed is the mathematics of profitable trading, where trading target of just 1% in a week for a year with principal or capital of N100, 000 will give return of N67, 768.89 which is 67.78% gain, which many superstars and investment houses in the world cannot achieve but with your consistent, commitment and diligent to your trading goals and objective you will get there. In 5 years your N100,000 will turn to N1.32 million.  This is revealed in the workshop video and materials.  Grab your copy now and ride with the recovery stock market and economy.

The workshop video can be view in your phone, laptop and television. The cost of the pack is N20,000 including DHL delivery at your door step.  Payment should be made into Investdata Consulting Ltd, Zenith Bank 1013033032. When payment is made, kindly send details to 08032055467,

How not to lose money in stocks

It is true that your hard-earned income is invested in the stock market and it becomes necessary for you at any given point to protect this money and grow it in the same market by investing knowledgeably. It happens that one Monday afternoon, a friend of mine called to say that his broker has always made him to lose money by buying at the highest price and selling for him at the lowest price. This had always made him to lose money. It is true that brokers would not buy stocks for their clients without a mandate or instruction from the buyer. That means my friend also has his own faults, either by giving instruction to buy stocks for him when prices have gone up, anticipating that they would go higher but go down or reverse down due to profit taking. This may result in selling at a lower price, thus making the buyer to lose money.  To avoid this, always ensure you enter and exit a position fairly by buying into a weak market and selling in a strong market as buying or selling pressure will always affect the market price of any stock.

Confidence: Your confidence in the market and the specific stock you are buying is very important, suggesting that you should understand the companies you are putting your money -their business model and other things that are necessary to know that the company is strong.  Confidence is just as important in investing as it is in any other aspect of life, whether it is sports, business or a relationship etc. Use numbers to help decide when to buy or sell, and also your learning how to use your instinct in all these will go a long way to help you protect your money. The more confident you are in your decisions, the more likely you will be correct.

Factors for the market

Here, what are the factors that support the market at that particular time, listen to what’s going on around you. Consciously or subconsciously you cannot avoid soaking in external stimuli. The market, in a large part, is dictated by emotions, which are evident everywhere – TV, radio, social media, friends etc. If you can learn to pick up on a consumer sentiment and use this to help predict the direction the economy or the market is heading, you will have a huge advantage.  As we always say, the trend is your friend but it’s when you identify it at the right time and ride with it that matters. And that is why you should register with INVESTDATA buy and sell signal setup for weekly stocks to trade with target of 4% after your transaction charges

Trade stocks you understand

Finally, stick to a proven strategy and trade a handful of stocks that you’re familiar with. So often, I see people with 20 – 30 positions in their portfolios.  What’s the point?  If you’re that worried about diversification, buy bond.  Too much work goes into the management of a portfolio of that size.  Stick to five – eight stocks that you are very familiar with and that have potential of rallying.  Then, you know exactly where the support and resistance points are, when earnings will be announced, what products are in the pipelines and much more pertinent information that will drive price.