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Stock Trading as Sole Business
stonemimi
#1 Posted : Thursday, July 16, 2009 5:48:00 AM
Rank: Member


Joined: 5/16/2009
Posts: 145
My friend just got laid off the other day and considers himself technically unemployable. He contemplates taking on stock trading as a business and wanted me to advise. Though I have some idea about stock trading,I do not know of anybody who survives on trading at NSE. I thought of posting the question so that SK veterans can advise. I am particularly keen to hear from anyone who trades fulltime.
Kausha
#2 Posted : Thursday, July 16, 2009 7:18:00 AM
Rank: Member


Joined: 2/8/2007
Posts: 808
This market is too small,has poor information and full of underhand ongoings making it a dangerous game to live off stock trading. You also need to have a huge amount say 3m + to try that kind of thing with meaningful returns. As i said earlier it's dangerous becasue you could have that money stuck in there or lost if your bets don't work out. Typically those who do it in other african markets say egypt or SA purely use information about companies and technical movements to make small logical spreads. However you can take good bets once in a while and pick your gains and sit and wait for the next big thing. I remember in April this year ARM was trading at 55 for 2 days. Now if you bought then with the 3m and sold when it hit 100,you surely are sitting on about 2.5m gain which can see you through the year,but you have to be very disciplined to resist the temptation of pouring the money back in.
young
#3 Posted : Thursday, July 16, 2009 7:58:00 AM
Rank: Elder


Joined: 6/20/2007
Posts: 2,037
Location: Lagos, Nigeria
From my expereience

It is better to combine stock trading with some other business either paid employment OR private business (real estate,retail,consultancy,trading)



AFRICAN INVESTOR
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
eli
#4 Posted : Thursday, July 16, 2009 10:09:00 AM
Rank: Member


Joined: 6/17/2008
Posts: 294
Man shall not live on bread alone!

A wrong place to quote that verse,but anyway! Young has said it all.

Its better to combine stocks trading with something else. I for one combines it with Doxa Interactive Studio,www.thedoxa.net,the home of creatively designed Websites,Logos,Flash Animations,etc. In short with internet business!

Stocks can hold your capital for upto 3 months Like it did sometimes back,from February to May ( during the great 'economic crunch' )!

Now,in those 3 months utakula mawe?

But you shall remember the LORD your God,for it is He who is giving you power to make wealth,that He may confirm His covenant which He swore to your fathers,as it is this day. Deu 8:18
stonemimi
#5 Posted : Thursday, July 16, 2009 2:28:00 PM
Rank: Member


Joined: 5/16/2009
Posts: 145
@kausha; @young; @eli

Thanks for your contributions. They are very enlightening.

What comes out clear is that perhaps nobody in sk lives on stock trading. Those who do it combines with other businesses. The question in my mind is whether the returns in the long run are ever positive. Look at it this way:


the kenyan market is small
there is poor information
serious underhand dealings at nse
opportunities lost while your money is stuck in a bad bet
requires a large capital outlay
etc

my friend wants to specialize in one type of business. What of full time farming or commodity trading. remember fellow tecnically unemployable and has low ICT literacy,making internet business not an option.
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