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Stocks full time speculator
newfarer
#1 Posted : Thursday, April 29, 2010 8:11:18 AM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
Suppose I had like 100,000/= and decide to use it to do an informed speculation at the NSE on full time basis i.e just sit at my brokers offices and place a buy order on shares which shows signs of gaining and placing a sell order for shares with signs of losing.I think share price increases and decreases have become too predictable from discussions here(case in point Mumias and CFC).Isn't it possible to make money with such a strategy and become a fulltime speculator over time? Has anyone ever tried this or rather do we have people who live on this.
I.e wake up in the morning go to broker , place a buy or sell order depending on the market, make 2000 or 3000 a day from this, just like marikiti market?
punda amecheka
Jaguar
#2 Posted : Thursday, April 29, 2010 8:18:42 AM
Rank: Member

Joined: 6/7/2007
Posts: 263
Location: humu humu
interesting...100k is peanuts for playing with fire, you need at least 400k. You also don't need to visit your broker, email followed by a phone call is sufficient. Lastly, most people on wazua praise the stocks they have already bought and call the ones they don't have in their portfolio junks. The advice on this forum especially on stocks is 99.99999% biased
VituVingiSana
#3 Posted : Thursday, April 29, 2010 8:28:38 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
You forget T+5 (Prompt T+1) before you can sell...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
newfarer
#4 Posted : Thursday, April 29, 2010 8:35:39 AM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
Jaguar ,agreed 100k may be insufficient but this figure was just an example.
The aim of going to the broker would be to creat a rapport with the broker to ensure the order goes fast and have a first hand information on the price change ,supply and demand on the screen.I'm talking of a person who would wish to become a fulltime speculator(no other job).As he sits at the brokers office he does some internet reasearch /browsing on informative sites like wazua et al.to get the market trend to make an informed decision.Can this work?

@VVS one can work on the Prompt board ,

And then this will be a daily activity hence T+1 will have minimal effect.

The aim will be to cover transaction costs and make some profit.


punda amecheka
Jaguar
#5 Posted : Thursday, April 29, 2010 8:48:58 AM
Rank: Member

Joined: 6/7/2007
Posts: 263
Location: humu humu
@newfarer, the part of sitting at your broker's premises daily really got me laughing..won't work unless you live in the nairobi cbd, otherwise you will spend too much on fare or fuel. You can get accurate demand/supply figures by subscribing to nellydata or mystockslive (mystockslive is the best @1k per month)
2012
#6 Posted : Thursday, April 29, 2010 8:49:53 AM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
Jaguar wrote:
interesting...100k is peanuts for playing with fire, you need at least 400k


400k? I'd say you need at least 5M to make a living from it. You'd still need to speculate plus do short-term and longterm too. Remember this little piece of advice 'if it was that easy we would all be doing it' you need a lot of experience even experienced investment companies with full time actuaries and trained investors get it wrong. So don't go in expecting it to be a walk in the park.

BBI will solve it
:)
VituVingiSana
#7 Posted : Thursday, April 29, 2010 8:59:25 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
Prices & quantities on T+1 are limited...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
sheep
#8 Posted : Thursday, April 29, 2010 8:59:25 AM
Rank: Veteran

Joined: 7/24/2008
Posts: 781
@newfarer,

From the way you have asked the question,dont try it.There is a way you have to be wired to make it.

Plus there is no way you can make it trading daily unless you are an insider.
Just buy and hold and enjoy good night sleep.
The utimate goal of investing is to buy low sell high;if we re-write this core equation in psychology terms it becomes buy fear sell greed.
winston
#9 Posted : Thursday, April 29, 2010 9:13:17 AM
Rank: Member

Joined: 4/14/2010
Posts: 806
Location: Nairobi
Been following the T+4(5?) settlement date. My broker deferred my purchase order till my cheque cleared into their account. Surprisingly, previous orders weren't subjected to the same constraint despite being twice the cheque value. My previous broker never subjected me to this.Is this the norm with all brokers? Or is their a new rule at play?
VituVingiSana
#10 Posted : Thursday, April 29, 2010 9:27:37 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
@Winston: Chq clearance can be 1-4 days... then buy shares then t+5 before you can sell...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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