Capital Market Nigeria

It is now time to make money from the stock market again. There are usually two parts to stock markets- the bear and the bull. The bull represents rising up of price while the Bear represents the falling of price; whichever way, the price of any stock must go through this process.

Normally, all stock prices go up and down. There is no price that goes up that does not come down and there is no price that goes down that does not go up; whether good or bad stocks, penny stocks, blue chip, growth stock or defensive stock. For a while in the Nigeria stock Market, we have been seeing the downtrend of prices; that is the bearish movement of the stock market.

A market becomes bearish if the market capitalization has lost between 15 % to 20 %. It is therefore easy for us to say that most of the stocks have been down because they have lost 15 % to 20 %. I am sure if you bought your stock about 3 months ago, you would have been unhappy with yourself, but I am here to tell you that the bull is returning with the full force, but consider the following strategies.

1) Most of the stocks that have been down since the beginning of the capital market this year will definitely pick up this year.

2) Most of the stocks that had their year end two, three, and one and from this particular month should start picking.

3) Stocks that are going for normal public offer and private placements should generate you money.

Now to trade the bull market properly, these are the steps to consider

1) Find out the stocks that have lost 30% and below during the bearish, lost period and their hope of rebound.

2 Check out the stocks that have been losing since the bullish run started at the beginning of the year. They are the ones that will pick up in the advent of the return of the bull.

3) Check stocks that have 3 months before this month and one month to this month; they are good stocks to buy, buy confirm other fundamentals.

4) Buy stocks that have the prospect of bonus and good dividends.

5) Buy stocks that are newly listed

6) Never be too greedy in this bullish run, because no greedy man wins in the stock market.

7) Most of the stocks available now are good foe medium term and those that are for short term must be quick ones.

At this point we open doors for comments, feel free to add your own tips.