Activities in the NSE have been so poor this year as to tempt some stock traders to abandon stock trading altogether. The low level of liquidity, capital flight and investor apathy unknown before in the capital market has combined to make January one of the worst trading months on the NSE.
There were signs that the market will rebound as early as Friday last week, but the index chalked its first gain on Monday. Gains by highly capitalized stocks like NB, Oando, FBN, etc has pushed the index up for two days now, so where do we go from here. This is the time traders make their worst mistake. Some traders will just wake up now and remember that they have not bought some stocks, invade the market with the hope of making a kill. These investors will buy stocks now after some stocks have gained about 15 %. They then hope and pray that the stock will continue to move up.
I think it is late to buy now if you have short time trades as an objective.
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