HOW TO REMAIN BULLISH IN A ZIGZAG MARKET

HOW TO REMAIN BULLISH IN A ZIGZAG MARKET

You will notice the market has been zigzag for a long time .Do you know that because of the manner the market got down to the bottom some people almost killed themselves.Alot of factors has been responsible for the downturn of the market.

The market was not supposed to remain perpetually bullish.We should expect the same abnormal behaviour for the bearish run
The new laws of the Nigerian Stock Exchange are new to investors and brokers
The 1billion naira capitalisation for stockbrokers
The floating of many private placements, which I realised is the most important point.If the primary market is down,the secondary market will be up,and if the primary market is up,the secondary market will be down.When there are many public offers in the market,investors may be selling their holdings;that is their stocks in the secondary market to buy the public offerings,which is generally reffered to as primary market activities

HOW TO STAY BULLISH ALL THE TIME
Do not follow people to buy any stock that is outside.Follow trend,follow instructions.It means if you are going to buy a stock,do not buy private placement because everybody is buying it .You buy stock when the market is low and sell when it is high.Its your duty to find when it is high or low so that you can take positions.

There are two basic points every winner in the stock market buys;its at the pick-up or bottom end and refuse to sell until they see it at maximum point of start-up or at make –up phase.

You should mix defensive stocks as part of your stock,this is to defend your portfolio in case you invest wrongly.What are defensive stock?they are stocks that can not easily crash like any other category of stock.They have been tested and discovered to have strong resistance against downward trend.They reduce fear because they always give high returns of dividend and bonus .Most of the defensive stock fall into the category of food and beverages.Examples are Nigeria Bottling Company,Nestle,Dangote sugar,7-up,Texaco,Total.Mobil etc.
Most of these stocks are characterised by the following features
a, They do not fluctuate too much and thereby do not respond to the market pressure so much
b, They give other forms of returns more than capital gains.
c, They are usually expensive
d, Their prices do not appreciate like the penny stocks,but appreciate and double over the years.RT Briscoe was 2naira five years ago,but now 30 naira
Do not base your investment with sentiments,invest based on findings,and research before you buy.

Seek professional advice
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