Wazua
»
Investor
»
Stocks
»
Seeking a loan to trade in the NSE.
Rank: New-farer Joined: 6/5/2010 Posts: 30 Location: Nairobi
|
Hallo everyone,
I have found that most Kenyan banks are shy when in comes to giving loans to individuals who state that they want to use the money to trade in the NSE. I am currently working at a port oustide Kenya, in a tax free economy. If i get a loan in Kenya,I am more than able to service the loan with 30% of my salary and yet meet other financial obligations.I can get a loan from these foreign banks but we all know in a post 9-11 world, the anti-money laundering laws just increased the amount of paper work i have to go through to prove the source of my funds if i choose to wire the money to Kenya. This is why i prefer taking the loan from Kenya even though the interest rates are higher in Kenya.
Please advice.
|
|
|
Rank: Member Joined: 8/30/2010 Posts: 183 Location: Migingo
|
Personally, i would never take a loan to buy shares. I only buy shares with my savings--that is money that i dont intend to use in the short term, money that am willing to "throw away". Don't Work for Money, Let Money Work for You..
|
|
|
Rank: New-farer Joined: 1/16/2014 Posts: 25
|
I agree with georgeop on the point of investing in the stock market with your own equity. Hopefully Munyao Trader, you have the experience, and you've done your research/analysis well and are confident enough to go that route. If not, seek advise first before investing with debt. If yes, well, then you may borrow for something else (that the banks will finance comfortably), but over-state the amount with however much you'd like to put into stocks.
But still, get advice, bcoz losing money in the stock market isn't funny, especially if its borrowed!
Cheers
|
|
|
Rank: New-farer Joined: 6/5/2010 Posts: 30 Location: Nairobi
|
For a long time now i have been calling a price increase in advance and in less than 3 months the particular stock increases in price by more than 15%.
Now imagine if you are short trading, and your portfolio increases by 11% every three months (because the 4% will be consumed as the brokerage fee i.e. 2% for buying and 2% for selling),the portfolio can realistically go up by 40% annually if you are short trading stocks.
I see many stocks trading at their historical low but the company is not making any losses. It is the perception of the retail investors that is moving stock prices.So by the time the investors come to their senses and buy, i sell at a price increase of 15%.
|
|
|
Rank: Member Joined: 1/4/2013 Posts: 255
|
MunyaoTrader wrote:Hallo everyone,
I have found that most Kenyan banks are shy when in comes to giving loans to individuals who state that they want to use the money to trade in the NSE. I am currently working at a port oustide Kenya, in a tax free economy. If i get a loan in Kenya,I am more than able to service the loan with 30% of my salary and yet meet other financial obligations.I can get a loan from these foreign banks but we all know in a post 9-11 world, the anti-money laundering laws just increased the amount of paper work i have to go through to prove the source of my funds if i choose to wire the money to Kenya. This is why i prefer taking the loan from Kenya even though the interest rates are higher in Kenya.
Please advice. Why not set aside the 30% monthly for this venture?
|
|
|
Rank: Elder Joined: 2/16/2007 Posts: 2,114
|
MunyaoTrader wrote:
So by the time the investors come to their senses and buy, i sell at a price increase of 15%.
So when do you foresee this happening?
|
|
|
Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
|
MunyaoTrader wrote:For a long time now i have been calling a price increase in advance and in less than 3 months the particular stock increases in price by more than 15%.
Now imagine if you are short trading, and your portfolio increases by 11% every three months (because the 4% will be consumed as the brokerage fee i.e. 2% for buying and 2% for selling),the portfolio can realistically go up by 40% annually if you are short trading stocks.
I see many stocks trading at their historical low but the company is not making any losses. It is the perception of the retail investors that is moving stock prices.So by the time the investors come to their senses and buy, i sell at a price increase of 15%. my 2 cents input on borrowing a.k.a leverage is that it can magnify your gains if you buy low but it can also magnify your losses if you buy high...you can't predict the market all the time
|
|
|
Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
|
A loan is a short term credit and stocks are long term commitment. You can do it but evaluate your risks. You can make great returns or end up in a bulltrap if the stocks nosedive and your banker will come calling. I would never take a loan invest in the stock market
|
|
|
Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
|
MunyaoTrader wrote:Hallo everyone,
I have found that most Kenyan banks are shy when in comes to giving
loans to individuals who state that they want to use the money to trade
in the NSE. I am currently working at a port oustide Kenya, in a tax
free economy. If i get a loan in Kenya,I am more than able to service
the loan with 30% of my salary and yet meet other financial
obligations.I can get a loan from these foreign banks but we all know in
a post 9-11 world, the anti-money laundering laws just increased the
amount of paper work i have to go through to prove the source of my
funds if i choose to wire the money to Kenya. This is why i prefer
taking the loan from Kenya even though the interest rates are higher in
Kenya.
Please advice. Unwise..imprudent..nuf said o.O ..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
@Munyao do not be discouraged. If you want to take a loan to invest at nse, by all means do. The key point is to appreciate the levels of risk involved and mitigate accordingly. Life is short. Live passionately.
|
|
|
Wazua
»
Investor
»
Stocks
»
Seeking a loan to trade in the NSE.
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|