Our Promise: By the end of this guide, you will move beyond the basics. You will not only know where to get data but how to critically interpret it. You will understand the reasons behind market movements and be able to formulate and document a clear investment plan, making your first trades with confidence.

Core Principles:

Investing vs. Trading vs. Speculating:

• Investing (Our Focus): You are buying a small piece of a business, not just a ticker symbol on a screen. Your decisions are based on the company’s financial health and its long-term potential. You plan to hold your shares for years.
• Trading: You are focused on shorter-term (days, weeks, months) price movements, often using technical chart patterns and market sentiment to make decisions. It’s a valid skill, but it requires a different, more active methodology.
• Speculating: You are making a high-risk bet on an outcome with little analytical backing, often on thinly traded or “story” stocks. This is closer to gambling and should be avoided until you have significant experience.

What Really Moves Prices:

• Information (The “Why”): A stock’s price moves when new, unexpected information comes out. This can be big-picture “macro” news (like changes in interest rates or foreign exchange/FX policy), sector news (new rules for banks), or company-specific news (great earnings report).
• Liquidity (The “How”): Information gives people a reason to buy or sell, but the actual price change is caused by money moving. It’s a simple supply and demand of buyers vs. sellers.

• Your Advantage is Patience, Not Speed: As a regular investor, you won’t get news faster than the professionals. Your power lies in your behavior. You can be patient, avoid making emotional decisions based on fear or greed, and stick to a simple, written-down plan. This discipline is your greatest advantage.

Your Checklist:

• Define your circle of competence. Pick one or two sectors where your professional or consumer experience gives you an analytical edge.
• Build an “active” watchlist. Don’t just list stocks. Track key news, upcoming earnings dates, and price levels for 5-10 target companies.
• Commit to the 1-Page Memo. Do not invest a single Naira until you can clearly articulate the “why” on paper.