Stock Trader Mentality

In my nearly ten years of stock trading and analyzing stocks so far I have encountered every real stock trader who has one thing in common; they all believe in the capital markets All is possible

The mentality of a stock trader is a comprehensive description of psychology, thought patterns, belief, heartbeat and stock trading methods. Traditional stock investors do not want to take risks, security, spend his time, do not know the liquidity of equity investment, he did not know the practice of stock investment and do nothing, he is a passive player active capital market terrain. No wonder they are only trading in the Nigerian capital market with over 10% of the Nigerian Nasdaq's 10%, they constitute about 90% of the investors claiming to own the company shares

Is a stock dealer?

The definition of stock traders in the 21st century is very interesting. The term "transaction" simply means "buying and selling", which gives the impression that stock trading means having knowledge of the merchandise from the next store of the trader or wholesaler and looking to sell to the customer.

A stock trader is a person who purchases and sells shares of the company on the Nigerian Stock Exchange with the active help of a registered stockbroker, as individuals can not do business directly with the Nigerian Stock Exchange

The second definition of a stock trader may be understood from the services provided by authorized securities brokers on the floor of the Nigerian Stock Exchange. Daily from 9:30 am to 12:30 pm from Monday to Friday. They do business through a computer connected to the Central Security Clearing System Co., Ltd.

1. A transaction for capital domination

Every stock trader I know is profitable, which is his main motivation for investing. Therefore, he seeks to buy stocks with high capital appreciation potential (the difference between the purchase price and the sell price) and wait for an appropriate time to sell.

2. He often buys and sells stocks, rather than keeping them

Average and active stock traders are interested in buying and selling stocks rather than keeping them. Unlike a long-term trader, able to afford to buy stocks for a long time. The stock trader often gets his stimulus from the trading stock, which he considers the turnover.

3. Shares or shares shall rank pari passu in the acquisition of capital

Long-term investors have high long-term premiums on dividends and dividends as it increases the size of the portfolio, buys the company, receives dividends and dividends, or both. But on the other hand, stock traders like bonuses and dividends because they increase their portfolios in the short term, and when stock traders pick a company that will pay dividends and / or bonuses after the registrar closes, Of the stock, looking for other opportunities elsewhere

4. He was ready to calculate the risk

One of the main reasons many investors miss out on the extraordinary opportunity to make themselves readily available is because of fear of risk taking.

Experienced stock traders understand that in a capital market the higher the risk, the higher the rate of return, and hence the size of his capital market Most investors are reluctant to take risks. Spend time attending seminars, reading stock investment books, investing in audio and video CDs, and frequently accessing the Internet to keep up with current trends; stock traders understand that knowledge risk can be minimized.

Every stock trader knows that stock trading is a serious business that needs to tie in with the undercurrents skills of stock trading, he does not hinge on his assumptions or faint speculative trades; he continually studies behavioral business models, History, events, news, making this round, all of which are sure to keep him with the development of the stock market. (This is the first part of this report)