Economy
Major Steps a Retail Investor Must Take to be Successful Consistently
Retail investors are amateur, individual investors who use brokerage firms or their own funds to make investments.
When it comes to investing, retail investors need to be aware of a few things. They must do due diligence and test the waters before committing because the majority of them lack the experience and information needed for investment. The following investing advice can assist you as a retail investor in making wise decisions and maximizing your investment.
Set a financial objective
Like piloting a ship without radar, investing without a financial objective is foolish. Financial objectives provide the framework for your investments and aid in determining the types of investments you should make to meet them. Depending on your objectives and the sum required to reach them, you must invest.
Short-term
The time frame for short-term objectives is between six months and a year. These objectives can include planning a trip or putting together an emergency fund. You can think about making an investment in liquid funds or bank fixed deposits to help you achieve short-term objectives.
Medium-term
Approximately three to five years are needed to accomplish medium-term objectives. These objectives can include saving money for a down payment on a home. You could invest in aggressive hybrid funds for medium-term objectives.
Long-term
Long-term objectives are at least 15 to 20 years distant. These objectives include retirement, children’s further education, and other things. You can invest in pure equity funds to achieve long-term objectives as they have the potential to outperform inflation over time.
Use a reputable investment broker
One of the most important factors to consider when choosing a broker is the regulation or licensing that they possess. Make sure the organization you are working with is approved and regulated by a government body. If they are, you won’t have any trouble opening an account with them.
On the other hand, before using the broker’s license, you should make sure it is real and in good standing. In other words, if the license is current and you’re working with a registered broker, you won’t have any problems trading the financial markets.
Start Little
Starting small and spreading out your assets is advised for regular investors. This is especially true if this is your first time making an equity investment. A volatile asset class is equities. If you start out losing a lot of money, investing becomes a painful process.
It is preferable to begin with systematic investment strategies if this is your first time using mutual funds to invest in stocks. This assists you in maintaining your investment throughout market cycles, building up more units during bear markets, and developing disciplined saving habits. Long-term investment commitment reduces volatility’s magnitude.
Be patient
On the other hand, it’s crucial to avoid losing interest in your assets too soon. Because of this, you can pass up fantastic opportunities because you think it’s too late or get impatient waiting for the stock to move.
Long-term returns can be improved by taking a more cautious and methodical approach to constructing your portfolio. However, expecting a portfolio to do a task for which it is not equipped will only lead to disappointment. Keep in mind reasonable expectations for the expansion of your portfolio and future rewards.
Tame your emotions
Emotions have no role in financial decisions. In the long run, investing objectively can increase your wealth and screen out underperformers from your portfolio. Most retail investors let their emotions influence their decisions, which they later regret. Greed takes precedence during a bull market, and most investors end up investing at exorbitant values.
On the other hand, when the market is in a bear phase, many investors panic and flee. Both actions are not desirable. When you give in to your emotions, reason becomes secondary. When you tend to invest emotionally, you lose sight of the big picture.
Avoid following the crowd
Herd mentality is rather typical. Those impacted unquestioningly copy the investments made by others. The outcomes might be severe. Keep in mind that there is no one-size-fits-all strategy for investments. Financial objectives, risk tolerance, and cash flow are all unique to each person. Because of this, what works for someone else might not work for you. You don’t have to chase after the stock or fund that everyone else is. Be sure to consider your goals and financial situation before making a call. You may avoid herd mentality by using logic and discipline.
To sum up
Being in control of your investments can be achieved by avoiding these blunders. They also guarantee that you are on the road to financial freedom and assist you in navigating difficult situations with ease.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.24 per cent on Wednesday, December 17, pulling the Unlisted Security Index (NSI) up by 8.62 points to 3,614.64 points from 3,606.02 points.
In the same vein, the market capitalisation added N4.72 billion to close at N2.164 billion compared with the N2.160 trillion it ended on Tuesday.
The growth was inspired by four securities, which finished on the gainers’ log, neutralising the losses printed by two other securities on the trading platform.
MRS Oil Plc gained N17.90 on Wednesday to end at N196.90 per unit versus N179.00 per unit, NASD Plc appreciated by 59 Kobo to N58.50 per share from N57.91 per share, FrieslandCampina Wamco Nigeria Plc added 15 Kobo to sell at N60.19 per unit versus N60.04 per unit, and Industrial and General Insurance (IGI) Plc rose by 6 Kobo to 64 Kobo per share from 58 Kobo per share.
On the flip side, Golden Capital Plc extended its loss by 76 Kobo to end at N7.75 per unit versus N8.51 per unit, and Central Securities Clearing System (CSCS) Plc slipped by 35 Kobo to N39.65 per share from N40.00 per share.
Yesterday, the volume of transactions increased by 737.3 per cent to 20.4 million units from 2.4 million units, but the value of trades fell by 33.8 per cent to N72.2 million from N109.1 million, and the number of deals slid by 62.5 per cent to 21 deals from 56 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc remained the most traded stock by value on a year-to-date basis with 5.8 billion units sold for N16.4 billion, the second position was occupied by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and the third place was taken by MRS Oil Plc with 36.1 million units worth N4.9 billion.
InfraCredit Plc was also the most traded stock by volume on a year-to-date basis with 5.8 billion units traded for N16.4 billion, followed by IGI Plc with 1.2 billion units valued at N420.7 million, and Impresit Bakolori Plc with 536.9 million units worth N524.9 million.
By Dipo Olowookere
A 0.26 per cent growth was achieved by the Nigerian Exchange (NGX) Limited on Wednesday on the back of sustained bargain-hunting by investors.
This happened despite a pocket of profit-taking, with industrial goods losing 0.63 per cent and the energy index shedding 0.05 per cent.
But the insurance space increased by 2.02 per cent, the banking counter appreciated by 1.48 per cent, the commodity sector improved by 0.48 per cent, and the consumer goods segment rose by 0.03 per cent.
Consequently, the All-Share Index (ASI) went up by 383.71 points to 149,842.82 points from 149,459.11 points and the market capitalisation jumped by N244 billion to N95.525 trillion from N95.281 trillion.
The market breadth index remained positive after the bourse finished with 38 price gainers and 23 price losers, indicating a strong investor sentiment.
The quartet of First Holdco, Lasaco Assurance, Veritas Kapital, and Prestige Assurance gained 10.00 per cent to quote at N39.60, N2.75, N1.76, and N1.65, respectively, while Mecure Industries grew by 9.92 per cent to N50.40.
Conversely, Living Trust Mortgage Bank lost 10.00 per cent to close at N3.15, International Energy Insurance dropped 9.92 per cent to trade at N2.27, McNichols shrank by 6.90 per cent to N2.97, Omatek decreased by 6.84 per cent to N1.09, and Chams dipped by 6.41 per cent to N2.92.
The activity level witnessed a significant surge at midweek, with Ecobank trading 5.3 billion units for N168.7 billion.
Further, First Holdco sold 108.2 million units worth N4.2 billion, Sterling Holdings exchanged 87.3 million units valued at N606.2 million, FCMB transacted 74.3 million units worth N783.6 million, and Access Holdings sold 41.5 million units for N841.4 million.
At the close of trades, market participants traded 5.9 billion units valued at N216.2 billion in 25,205 deals compared with the 1.0 billion units worth N21.8 billion traded in 23,701 deals a day earlier, showing a rise in the trading volume, value, and number of deals by 490.00 per cent, 891.74 per cent, and 6.35 per cent, respectively.
By Adedapo Adesanya
The Naira depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 17, by N3.67 or 0.25 per cent, closing at N1,455.49/$1, in contrast to Tuesday’s closing price of N1,451.82/$1.
Also, the local currency weakened against the Euro in the official market at midweek by 98 Kobo to close at N1,706.72/€1 versus the previous session’s price of N1,705.74/€1, but improved against the Pound Sterling by 75 Kobo to trade at N1,943.28/£1 compared with the N1,943.98/£1 it traded a day earlier.
At the GTBank forex counter, the Nigerian currency lost N3 against the greenback to finish at N1,463/$1 versus N1,460/$1 and in the parallel market, it remained unchanged at N1,475/$1.
Thin US dollar inflows from exporters, non-bank corporate, foreign portfolio investors and absence of immediate intervention of the Central Bank of Nigeria (CBN) to strengthen supply triggered fresh pressure.
This is coming off the back of decline in inflows through the Nigerian Foreign Exchange Market which decreased to $716.3 million last week from $844.70 million in the previous week , a 15 per cent drop in a week.
The intervention comes as the CBN expect inflows from Detty December to alleviate need for FX demand, but exorbitant local prices may be keeping spending at bay.
Regardless of the seasonal demand, positive FX support for the local currency through 2025 signals a deliberate action to ensure the local currency maintains the trading range amidst growing external reserves. Latest data showed that gross external reserves position advanced to $45.47 billion, reflecting a 11.2 per cent Year-to-Date (YTD) gain.
In the cryptocurrency market, there was selling pressure as traders liquidated positions amid a short-rally, leading Litecoin (LTC) to slip by 5.2 per cent to close at $75.12m, as Cardano (ADA) depreciated by 5.0 per cent to $0.3619, and Dogecoin (DOGE) lost 4.8 per cent to finish at $0.1247.
In addition, Ripple (XRP) depreciated by 4.7 per cent to $1.83, Solana (SOL) crashed by 4.1 per cent to $122.62, Ethereum (ETH) went down by 3.9 per cent to $2,826.62, Binance Coin (BNB) fell by 3.4 per cent to $833.07, and Bitcoin (BTC) tumbled by 0.5 per cent to sell at $86,436.66, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn