Getting It Right On The Nairobi Securities Exchange (NSE)

The Nairobi Stock Exchange (NSE) is the largest exchange in East Africa. In fact, some companies in the neighboring countries are cross-listed on the NSE. What does that tell you about the exchange? Perhaps that shows how the platform is important for a large number of investors out there. You can also use this rapidly growing securities exchange to your advantage and improve your financial position.

Go long-term on the NSE

The NSE provides a number of investment instruments known as securities, which include shares or stock and bonds. Investing in shares on the NSE presents an interesting opportunity to make money where some of the wealthiest people in Kenya have struck it rich. However, the rule of thumb in stock investment is that you need to be patient. Stock investment can pay off handsomely, but not so quickly in most cases. So, you need to have a long-term view for your stock investment. Going long-term does not necessarily mean waiting for 10 or 20 years to make gains from the NSE. However, a long-term view of a year or so is good enough for stock investment.

Stay cool

Most investors, particularly beginners get worried over sudden and sometimes short-term market moves. You don’t need to make investment decisions in a panic. What you need is the understanding of the market and the trends. Make sure you do due diligence before you make a move and when you do think long-term.

Be on top of the market news

In most cases, the difference between losers and winners in the stock market is their reaction to various news and developments in the companies they have invested. The other differentiator between winners and loser in the exchange market is information. Good investors seek to keep up-to-date with the market news and reports because such inform their investment decisions.

 Besides having a long-term view, avoiding panic moves and being informed about market developments, a good investor also avoids keeping all his eggs in one basket. Of course, you can get started with one stock, but seek to mix your portfolio not only by holding different stocks, but being exposed to different sectors.

The NSE provides a mix of sectors that include banking, communications, agriculture and insurance.

Click HERE to read about the minimum number of shares you can buy on the NSE.