How Can I Invest In The Nigerian Stock Market?

It is also possible to lose really quickly if you don't know what you are doing. Here is a clear guide for new investors to follow to avoid losing their heads in the volatile market.

‘’I have saved some decent amount of money over the years and have heard of the stock market. How then do I go about investing in stocks in Nigeria?’’ This is typical of the numerous questions we get asked on a daily basis and below is a simple guide to get you started.

The first thing we would commend you on, is that you have a great mindset. While it is certainly possible to make good money investing in the stock market, it is also possible to lose really quickly if you don't know what you are doing. Below is a clear guide for new investors to follow to avoid losing their heads in the volatile market.

1.    Choose a Stock broker.  You can go through the approved list of stockbrokers on the Nigerian Stock Exchange website (NSE). Be careful here to ensure you are not dealing with a fraudulent or suspended broker.

2.    Fill an Account opening Form with your preferred stock broker (AOF) and submit this with an indemnity form which will be given to you. You will also need to attach the following KYC documents: Proof of identity, Proof of Address, 2 Passport Photographs.

3.    Your broker then opens an in-house account and a Central Securities Clearing System Account for you (CSCS) and would provide you with the login details within 24 hours. 

4.    You can then login into your in-house and CSCS account online with your username and password and start trading live on the platform!

5.    If you decide to trade through your broker and have decided what stocks you will like to purchase with the number of units, you can reach out to your broker by filling out a Purchase of Sales form and your buy order would be processed.

6.    The good thing is that you can immediately log in to your in-house account and see details of the purchase, however, it takes 3 working days for it to be fully reflected on your CSCS online account. From henceforth you can monitor all buy and sell orders in your portfolio.

Despite the economy's ups and downs, the stock market has consistently proven to be a good place to invest your disposable cash and save for your future, especially when it comes to diversifying your investment portfolio and placing a certain percentage of your investment in stocks.

The good thing is that you don't have to be a dedicated day trader to make money in the market. Who really has time for that? If this is not your daily job description, then no one really likes to sit by the computer and monitor stocks all day long. 
If you study the stocks you want to place your money on and watch their overall growth over a period of time, you will most likely make a wise decision by buying low and selling high.

Planning ahead will rarely let you down. Invest wisely, and you will have a great nest of golden eggs for your future years.