While I don't deny that one can make a decent income investing in the NSE, I think it takes special talent to do so. I am a good example of this. When I joined Wazua (or SK as it was called then) I had big ideas about creating a balanced portfolio that would earn me 300K per month, which is what I estimated would guarantee me a comfortable retirement one day.

I was an attentive observer of many of the investors here. However it took me a very short time to realise that investing required at least two sets of talent, which I did not have: attention to pattern, for momentum investing and attention to detail, for value investing. And patience.

After making many mistakes and losing quite a bit on the NSE, I had to admit I was simply not good at this game and I should try something that I could at least partially understand. I moved my attention to real estate investing. Despite its problems, and there are many, real estate is something straight forward and I have made some progress, to the point where I am gradually approaching that 300K monthly income that I initially envisioned. It has taken me 10 years and a base of about 30M in (mostly borrowed) capital invested (so that 10% yield is not too far off).

Could I have made better returns investing that 30M in the stock market? Maybe, but for me, it would have taken luck or market manipulation and I am not sure either is a good strategy. In any case I didn't have that 30M to start with and if there is one lesson I have learned from Wazua it is this: don't invest in the stock market using borrowed funds.

As for the NSE, I now use it like a bank account. I buy shares expecting to sell them when I need the money (whether they are up or down) but hoping to get a better return than from a fixed deposit.

Seems @mugundaman was right that the NSE is a casino.

@S.Mutaga III. What are you buying/have you bought this year 2020? What was your entry price and when/what price are you exiting? Thanks in advance

AA has been investing in the casino since Moi error yet is still a broke employee whose hero is VVS. That should tell you something. A plot hata huko LODWAR is 100 times as safe and doubly so as lucrative as their crumbling penny stocks but ujuaji keeps them swallowing losses (that they even openly admit to with long inshas papa hapa) yearly. KILA MTU NA SUMU YAGHE!

Even that 11k they do not make. Notice how VVS tells long stories about nothing. Nothing he says adds up.

People are realizing that value investing does not work simply because the character of the market changed. Whereas in the past few years the major markets were in a strong bull trend, the turn to a bear market is finding people off-guard. Even the venerable Oracle of Omaha can not many any meaningful sense out of this.

The reason is that the bull market cushioned people with questionable investment strategies. In a major bull market almost any share price is likely to go up. So it is not rocket science to make money by buying just about anything.

In contrast, a bear market is more demanding strategy-wise. The strategies that worked so well in a bull market suddenly become ineffective to ward off losses. The reason is not that these strategies are suddenly not working. The important point is that the strategies were never effective from the onset, only that the raging bull blinded people to the truth. A bear market brings reality and sanity. Only the best of strategies work in both bear markets and bull markets i.e all the time as they should.

And in this bear market, Elliott Waves are even more better suited. Beacause in a bear market, the fear in people creates perfect Elliott Wave patterns that are even more clearly perceived.

This bear market will teach the discerning the very best strategies to forecast a market, any market, any time.

The bear in the NSE casino has been with us for the past 5 years. (it did not start now with Corona). We have just about to bottom out.

Cash is king for the so called "value investor".

The problem with wazuans is that they want to play pata potea at the casino with kshs. 20000 and expect to make a kill or in worst case get burnt a little.

My strategy is go hard or go home. e.g., why should i buy only 10,000 shares of Fahari i-reit at a kshs. 60000 bob yet i can purchase a 100,000 units by wekelea-ing 600 geez on this counter.

A 60 cents(10%) rise is a whooping 60,000 bob. I can make 60 gees every other week/day at the NSE casino by merely betting kshs. 600,000.

e.g.,

I buy 100000 shares of Fahari ireit today in the morning at 6 bob a share.

I sell the same shares leo leo for ksh.6.60. That is a staggering 60 ngwanyes(before tax/commisions).

Next week i wekelea my 650,000 bob and buy the NSE share at 7.20 bob and sell at 8 bob by lunch hour.

I repeat this every other day and i will bid my evil employer goodbye.

The secret in this pata potea business lies in cash. You got to have atleast a minimum of 1 million shillings(and a back-up source of income) to trade/play at the casino. if you rake-in a conservative 4(four) 10%'s in a year that is kshs.400000 before tax/commissions.

Easier said than done.