Folks! Let’s talk MONEY! Let’s talk WEALTH building. Specifically, let’s talk STOCKS and Stock Markets! BUT, before we begin, I will ask; WHAT is your RISK TOLERANCE? Do you know? If not, try as much as possible to find out. Investing in STOCKS, or anything involves taking RISkS.
This Thread and several others following is intended to EDUCATE and should NOT BE used as a recommendation. The aim is to demystify Stock trading in simple English. We will go through the lingo so you understand what they are talking about when you hear them talking about it.
Before I begin, I am going to fire shots at some of our “Educated” African “elite”. I am of the opinion, some of “us” are our worst enemies. They simply engage in amplifying negatives without looking deeper into the sources of the info. If a foreigner says it, then it’s “true”!
This issue will serve as a “lead in” to your understanding of STOCKS and stock markets. Remember JUMIA? The e-commerce company that went public late last year, to the chagrin of some of our “elites”. Their gripe was that Jumia was not “African enough”.
Their opposition gained momentum when a “Research” company named Citron “Research”, published an article that contained several allegations. They simply amplified his publication while Citron research got RICHER! BUT Did they bother to look up Who citron Research is, and do?
Will get back to Citron later when we discuss, “Short Selling” of stocks and how lucrative it is. We will look at, VIX also known as “Fear Index”. YES, Fear is sold and traded on a daily basis, and it is a very lucrative business model. Welcome to Stocks 101.
To be continued
To be continued
So what exactly is the “Stock market”? To understand, consider going into a Shoprite. Notice all the merchandise they have for sale? Replace those merchandise with registered companies and that’s the “Stock Market”! The only difference is that ; what is sold are SHARES
To keep it simple, there are two types of companies, Public and Private. Large companies can be private too. When a company starts, the founders decide on how they want to proceed. If they choose private, they fund the company. If they later decide to raise money, they go public
Going public, means they sell shares to anyone willing to buy and INVEST. A good example would be Dangote and INNOSON. Dangote is publicly traded. Innoson is not. Assuming Dangote has a total of 10 shares and you buy 2 of those, you own 20% of the company.
If the company makes money, you make money. If it loses, you lose. Now that we have the basics, we will in the next thread cover the LINGO of STOCK Trading. You MUST understand this lingo to be successful in stock trading. NEVER invest money you cannot afford to lose! To be cont
