In the first part of this section on making money trading Nigerian stocks online I introduced what stocks are, tried to define and explain some financial/stock market terms. Today, I will continue by defining some more terms such as Bull, Bear, Bonds, Treasury bills, and give you tips on how to select great stock picks, and the leading platforms for trading Nigerian stocks online.
Okay, let's continue.
In stock market parlance, when the price is going up, they say there is a BULLish pull. (Remember it this way: Up = bUll.)
If the price is going down, there is a BEARish pressure. (Remember it this way: bEAR = fEAR, so traders are dropping/selling and the price is going DOWN.)
[In Forex, we use the terms BUY and SELL, while in binary options, and within the financial world generally, it is CALL and PUT.]
Bonds are interest-bearing debt security/instrument issued by corporate bodies, governments and government agencies for the financing of infrastructure or for expansion purposes. It involves a promise to make periodic investment payment to the subscribers and also the repayment or the initial amount borrowed at maturity of the bond.
Whereas Treasury bills are government guaranteed debt instruments issued by the Central Bank. When you buy them, you lend to the government. Their usual tenors (periods) are 91 days, 182 days, and 364 days.
A bond is a major source of income for the government, and the corporate organisations who issue bonds to raise capital. But I am not sure the online trading platforms enable you to trade in government bonds online.
However, there are a couple of companies that allow one to trade Nigerian stocks online through their trading portal. They include: Meristem, Morgan capital, GT Bank's Investment one, Lead Capital Plc's LeadTrader platform, and many others. And the minimum amount required to open an account for most of them is between N50,000 and N100,000. This is partly because you need a substantial amount to trade some blue chip stocks, unlike in the Forex market where you can get a leverage of up to 1:1000 to trade currencies. Here, leverage is mostly 1:1.
Typical requirements for opening an account online include:
[And talking of penny stocks, I will tell you about Timothy Sykes in the next section on trading international stocks. He is the penny stock expert who before his 21st birthday turned $12,415 into $1.65 Million trading penny stocks in the US. He has taught (and still teaches) other college students like him to do likewise.]
Once you have transferred your money into your account with the company's platform, you log into their trading portal and start making your trades.
I wish you all the best using this method.
Don't forget to share this with your friends if you found it useful. And I will appreciate comments below, especially if you are more experienced in trading stocks online, or if you think there is something important I missed out. Thank you.
If the price is going down, there is a BEARish pressure. (Remember it this way: bEAR = fEAR, so traders are dropping/selling and the price is going DOWN.)
[In Forex, we use the terms BUY and SELL, while in binary options, and within the financial world generally, it is CALL and PUT.]
Bonds are interest-bearing debt security/instrument issued by corporate bodies, governments and government agencies for the financing of infrastructure or for expansion purposes. It involves a promise to make periodic investment payment to the subscribers and also the repayment or the initial amount borrowed at maturity of the bond.
Whereas Treasury bills are government guaranteed debt instruments issued by the Central Bank. When you buy them, you lend to the government. Their usual tenors (periods) are 91 days, 182 days, and 364 days.
A bond is a major source of income for the government, and the corporate organisations who issue bonds to raise capital. But I am not sure the online trading platforms enable you to trade in government bonds online.
However, there are a couple of companies that allow one to trade Nigerian stocks online through their trading portal. They include: Meristem, Morgan capital, GT Bank's Investment one, Lead Capital Plc's LeadTrader platform, and many others. And the minimum amount required to open an account for most of them is between N50,000 and N100,000. This is partly because you need a substantial amount to trade some blue chip stocks, unlike in the Forex market where you can get a leverage of up to 1:1000 to trade currencies. Here, leverage is mostly 1:1.
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| Meristem's account opening information |
Typical requirements for opening an account online include:
- Log into the website and click on 'Open new account link'.
- Fill the online form
- Upload required documents which include: Means of identification (Drivers license, National I.D or International passport), Proof of residential address (current utility bill: electricity, telephone, waste management bill, water bill) no later than 3 months
- Passport photograph
- Upload Signature specimen. Please note that the documents should be saved in jpeg format before uploading.
- Email is sent to your inbox informing you that a provisional account is now ready
- Sign in to provisional account and fill in the remaining details
- Fund your account
- Opening of CSCS account
Useful sites for getting stocks
updates, prices and latest news info include Meristem's research hub, proshareng, NSE website, Nairaland stockpick section and the website Smart Nigerian Investor.
Subscribe to their newsletters and follow Stock Market News and other experts in order to make accurate trades. But don't forget like I said in the first part of this article, when you trade Nigerian stocks,
- Have a long term perspective, i.e. look for more BUY opportunities and hold on to the stock with the aim of taking over the company one day --Think Warren Buffet.
- Do a proper research on the company/stock before you pick it.
- Target penny stocks (50 kobo stocks); they are the best bet in becoming very rich over time as an online trader as they are very cheap (50 kobo is the lowest price a company stock can be in the Nigerian stock exchange) and won't require a lot of money to trade.
[And talking of penny stocks, I will tell you about Timothy Sykes in the next section on trading international stocks. He is the penny stock expert who before his 21st birthday turned $12,415 into $1.65 Million trading penny stocks in the US. He has taught (and still teaches) other college students like him to do likewise.]
I wish you all the best using this method.
Don't forget to share this with your friends if you found it useful. And I will appreciate comments below, especially if you are more experienced in trading stocks online, or if you think there is something important I missed out. Thank you.
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