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Living entirely off the stock market
Rank: Hello Joined: 11/20/2013 Posts: 2
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Is it possible to live entirely off the stock markets and what does it entail?
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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wkirumba wrote:Is it possible to live entirely off the stock markets and what does it entail?
Yes... possunt quia posse videntur
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Rank: Member Joined: 10/26/2012 Posts: 136
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wkirumba wrote:Is it possible to live entirely off the stock markets and what does it entail?
Depends on several factors , do you live in a village , do you live in a city , what is your current average monthly expenditure. If you want to live a good life where say you can have disposable income of 500,000 after tax every month you need 6,000,000 shillings a year. on a fixed deposit you will need to have about 80,000,000 shillings . For stocks with an average dividend of 3% on the lower side would be able to pay you this . If this was my only source of income i wouldn't bet it all on stocks firstly secondly i would have to put in about a 10 % buffer to cushion me from shocks example a company failing to pay dividend. The best bet would be if you have 220 million to divide it into 2 or 3 , stocks and fixed deposits or stocks fixed deposits and real estate ( but not rental).
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Rank: New-farer Joined: 1/9/2015 Posts: 19 Location: NAIROBI
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wkirumba wrote:Is it possible to live entirely off the stock markets and what does it entail?
Yea....but it all boils down to position sizing and how accurate is your wagers...a +64% aggregate gain on all your positions is a decent liveable return. your monthly budget must also come into focus when entering a trade, lest the bills come calling when the payoff aint in sight.....all the best
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Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
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wkirumba wrote:Is it possible to live entirely off the stock markets and what does it entail?
YES! It entails becoming a stockbroker.
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Rank: Member Joined: 3/15/2010 Posts: 391 Location: nairobie
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chiaroscuro wrote:wkirumba wrote:Is it possible to live entirely off the stock markets and what does it entail?
YES! It entails becoming a stockbroker. well said
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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chiaroscuro wrote:wkirumba wrote:Is it possible to live entirely off the stock markets and what does it entail?
YES! It entails becoming a stockbroker. Nice one For investors as a whole, returns decrease as motion increases ~ WB
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Rank: New-farer Joined: 4/8/2015 Posts: 42
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mazingira wrote:wkirumba wrote:Is it possible to live entirely off the stock markets and what does it entail?
Depends on several factors , do you live in a village , do you live in a city , what is your current average monthly expenditure. If you want to live a good life where say you can have disposable income of 500,000 after tax every month you need 6,000,000 shillings a year. on a fixed deposit you will need to have about 80,000,000 shillings . For stocks with an average dividend of 3% on the lower side would be able to pay you this . If this was my only source of income i wouldn't bet it all on stocks firstly secondly i would have to put in about a 10 % buffer to cushion me from shocks example a company failing to pay dividend. The best bet would be if you have 220 million to divide it into 2 or 3 , stocks and fixed deposits or stocks fixed deposits and real estate ( but not rental). Not to divert from the topic... why not rentals?
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Rank: Member Joined: 10/26/2012 Posts: 136
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Sevian wrote:mazingira wrote:wkirumba wrote:Is it possible to live entirely off the stock markets and what does it entail?
Depends on several factors , do you live in a village , do you live in a city , what is your current average monthly expenditure. If you want to live a good life where say you can have disposable income of 500,000 after tax every month you need 6,000,000 shillings a year. on a fixed deposit you will need to have about 80,000,000 shillings . For stocks with an average dividend of 3% on the lower side would be able to pay you this . If this was my only source of income i wouldn't bet it all on stocks firstly secondly i would have to put in about a 10 % buffer to cushion me from shocks example a company failing to pay dividend. The best bet would be if you have 220 million to divide it into 2 or 3 , stocks and fixed deposits or stocks fixed deposits and real estate ( but not rental). Not to divert from the topic... why not rentals? Unless you already own property buying to rent for me is a bad idea. You will not be able to dispose of a property easily at the price you unlike stocks and fixed deposits. Then investing 20 mn in a property and renting for even 100k is silly coz theres VAT rates lawyers fees rent collections how much do u get. Its vetter to invest in non rental. Also if you think that property will appreciate indefinitely this is not going to happen
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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Yes it's possible but you must factor in your personal expenses vs the gains you are making.You should have a significant amount possibly in 6 digits or more so that the gains you make are big enough to cater for your upkeep when you aren't trading(during a bear) .
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Rank: Elder Joined: 6/23/2009 Posts: 13,551 Location: nairobi
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whiteowl wrote:Yes it's possible but you must factor in your personal expenses vs the gains you are making.You should have a significant amount possibly in 6 digits or more so that the gains you make are big enough to cater for your upkeep when you aren't trading(during a bear) . Its possible, but difficult.. Others have already explained the pitfalls in this thread
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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Yes you can!!! But you have to be one hell of a big shot or one very frugal Kenyan. You can also play the market but personally I am not a fan! Be among the "chosen" fewStart Cherry-picking stocks NOW, live entirely off the stock market IN FUTUREBut you can still do it without being a wealthy investor. But what you lack in money you should make up with extensive knowledge of the business environment, current affairs and the stock business - and approx. 5 million bob! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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Just like in a Casino, trying to live of the NSE is purely gambling. And as you already know, only the house wins (read brokers). I personally trade at the NSE as a hobby. If you meant waiting for annual dividends, BOSS, you will need a lot of capital, the div yields are not that good. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Veteran Joined: 8/10/2014 Posts: 977 Location: Kenya
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Stock trading not an easy task. Getting in at the right price every month is hard plus some months are just slow months with no big news affecting listed companies. So its not sth stable.
Dividends you need a lot of money. Investing in growing companies, for every 10m you put in you can make an average of 35k a month. This eventually grows over the years if you own growing companies'shares.
Otherwise be a stock broker
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Rank: Member Joined: 7/2/2014 Posts: 123
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it could be possible with the right tools, but from a humanistic perspective it'd probably be the most dehumanizing career?? imagine being holed up in a room trading numbers...you'd wake up at 60 and realize you never contributed anything to humanity... so maybe its best as a hobby ,
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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dunkang wrote:Just like in a Casino, trying to live of the NSE is purely gambling. And as you already know, only the house wins (read brokers). I personally trade at the NSE as a hobby.
If you meant waiting for annual dividends, BOSS, you will need a lot of capital, the div yields are not that good. Really?I have made quite a bit out of trading...I have clients who have made astronomical figures.... possunt quia posse videntur
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Rank: Hello Joined: 5/13/2015 Posts: 1
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Sorry to go off topic kidogo. I just stumbled upon this link below. Is this possible? Or am I looking at the newest scam in Nairobi? http://truckerskenya.co.ke/join-us/
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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maka wrote:dunkang wrote:Just like in a Casino, trying to live of the NSE is purely gambling. And as you already know, only the house wins (read brokers). I personally trade at the NSE as a hobby.
If you meant waiting for annual dividends, BOSS, you will need a lot of capital, the div yields are not that good. Really?I have made quite a bit out of trading...I have clients who have made astronomical figures.... And you are not a Wanjiku... I suspect the question was posed from a Wanjikuish point of view... For investors as a whole, returns decrease as motion increases ~ WB
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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[quote=IamKenya]Sorry to go off topic kidogo. I just stumbled upon this link below. Is this possible? Or am I looking at the newest scam in Nairobi? http://truckerskenya.co.ke/join-us/[/quote] Very colourful site I must say... I only got worried when I read average annual return of 83%. At least they didn't say guaranteed... Let wiser wazuans analyze if it's quail or not... For investors as a whole, returns decrease as motion increases ~ WB
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Rank: Elder Joined: 11/27/2007 Posts: 3,604
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maka wrote:dunkang wrote:Just like in a Casino, trying to live of the NSE is purely gambling. And as you already know, only the house wins (read brokers). I personally trade at the NSE as a hobby.
If you meant waiting for annual dividends, BOSS, you will need a lot of capital, the div yields are not that good. Really?I have made quite a bit out of trading...I have clients who have made astronomical figures.... A couple of things must be clear before you start living off stocks: 1. What gains are you looking at per year? 2. The gains are a % of what you put in 3. what happens when stocks dip? 4. You should 'eat' the gains only not the capital 5. what is the exit point for each counter? 6. You must diversify... If those are clearly noted and commented on, then whether the answer is Yes or No will come out clearly African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
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