Hello good people out there, its another brand new week for us traders in the Nigerian capital markets, the stock market to be exact. We have been presented with another opportunity to better our fortunes trading stocks on the good old NSE.
Looking at the recent happening, as regards the announcements that were made by the CBN after due consultations with many institutions, the market condition seems to be headed for the better, i.e., stock prices going up and allowing investors that have already taken position in the stock market to enjoy some capital appreciation.
After those announcements were made last Thursday, investors all expected to see a full reversal of all market indices, we all expected to see all stocks gaining across board as early as last Friday, but that was not to be as the market still closed Friday at a loss. Some has suggested that the real impact of this announcement will take some time to kick in since the market players are still studying the rules and its possible effects, negative and positive. But others say the loss on Friday was as a result of investors discomfort with the persistent fall in the stock prices.
So, what do we do as traders? Buy now and risk a possible relapse to the losing streak or stay off buying and also risk being left behind as the bulls take over. The good trader will want to be in on the bull as it as it starts, but care should be taken to avoid burning our fingers.
There was also this rumor at the end of last week for the suspension of the 1% maximum drop in share prices, we await this announcement as it will return things to near normal and clear the way for good trading.
We are watching
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