Best Time to Buy Shares in Nigeria
Best Time to Buy Shares in Nigeria revealed. We tested and verified the best time to buy shares for Nigerian Traders.
This is a complete guide to the best time to buy shares in Nigeria.
In this in-depth guide you’ll learn:
- Should you buy shares when they are high or low?
- What is the best time of day to buy shares in 2023?
- H0w to spot the share cycle to buy the bottom.
- What is the best day of the week to buy shares?
- When is the best time to sell stocks?
- Are shares a good investment in 2023?
- How do I buy shares with $5 (2 096 NGN)?
- Which brokers offer a signup bonus on a $5 (2 096 NGN) deposit?
And lots more…
So if you’re ready to go “all in” with the best time to buy shares in Nigeria…
Let’s dive right in…
CySEC, FCA, FSA, FSCA, Labuan FSA
FSA, Cysec, FSCA, FSC,
ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA
CySEC, ASIC, FSCA
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
Best Time to Buy Shares in Nigeria (2023)
What does it mean to “Time the Market” vs Time in the Market?
👉 “Market timing” refers to the practice of purchasing securities to sell them at a better price at a future time. Market-timing investors believe they are attempting to “beat the market” by outsmarting it.
👉 While market timing might first seem to be a variation of the old age “buy low, sell high,” the uncertainty of the future and the fast fluctuation of stock prices make it almost difficult to tell when a security has reached its lowest or highest price.
👉 “Time in the market” refers to a technique that does not attempt to predict when the market is at its lowest or maximum point. Instead, you purchase the market with the knowledge that your timing is likely to be inaccurate, but that eventually, fundamentals matter more than time.
👉 The “time in the market” investor will thereafter remain in the market until the initial reasons for purchasing have changed or the investor has attained their planned aim.
The Best Time to Buy Shares in Nigeria
👉 Investing in the stock market might induce anxiety in certain potential investors. Nobody wants to purchase when prices are at their highest. The principles of when to purchase and sell stocks boil down to the foundations of how the stock market functions.
👉 The goal is to buy cheap and sell high, but the problem with this is that any stock might rise or fall on any given day for a few reasons.
👉 For instance, the stock’s underlying business could be flawed, and the firm will lose money. Alternately, the stock price might be affected by an analyst report, a rumour regarding forthcoming corporate moves, or general economic news.
👉 Because of this volatility, it could be dangerous for individual investors to purchase and sell stocks to generate a profit; hence, many investors choose ETFs, index funds, and mutual funds, which incorporate several equities in a single package.
👉 Nigerian investors and traders must always remember that previous performance is not indicative of future performance.
👉 Even for professionals, determining when to purchase and sell stocks can be difficult. Money managers attempt to outperform the market by actively buying and selling stocks rather than investing in funds, but only a few are successful.
👉 Even though a passively managed index fund may be a better long-term investment, there are still many reasons why people want to trade stocks.
👉 To understand when the right time would be to buy shares in Nigeria, there are several components to consider, including the NGX’s market hours compared to that of other stock exchanges, whether there are specific days that are more suited to purchase stocks and the months that are more ideal to purchase shares.
Nigerian Stock Exchange (NGX) Market Hours vs Other Exchanges
👉 The Nigerian Stock Exchange (NGX) is the second-busiest stock exchange on the African continent, operating daily from 9h30 am to 2h20 pm.
👉 The Nigerian Stock Exchange is only open every day for 4 hours and 20 minutes, which is a noticeably short amount of time when compared to other markets.
👉 Frequently, trading in smaller markets is focused within a shorter time, resulting in increased liquidity, lower spreads, and enhanced market efficiency.
👉 When comparing the operation hours of the Nigerian Stock Exchange to those of important exchanges throughout the globe, the following pattern emerges:
|🔄 Exchange||⏰ Operating Hours GMT||⌚️ Operating Hours WAT|
|London Stock Exchange||8 am – 4h30 pm||9 am – 5h30 pm|
|New York Stock Exchange||2h30 pm – 9 pm||3h30 pm – 10 pm|
|Tokyo Stock Exchange||Midnight – 6 am||1 am – 7 am|
|Johannesburg Stock Exchange||7 am – 3 pm||8 am – 4 pm|
|Nigerian Stock Exchange||9 am – 1h20 pm||10 am – 2h20 am|
What Time Should I buy shares in Nigeria?
👉 The NGX is only open for a brief time and during this, conditions might be extremely volatile. Day traders like volatility so they may profit from intraday price fluctuations.
👉 Therefore, Nigerian traders can expect that the optimum times to purchase and sell stocks are between 9h45 and 10h45 am and between 1h30 and 2h20 pm. The initial and ending hours of trading are much busier than the hours in the middle of the trading day.
👉 Nigerian traders must understand that day trading and investing are very distinct activities. Investing is the act of purchasing shares in a firm. If the firm outperforms expectations, investors are rewarded with a substantial increase in the value of their shares.
👉 Day trading is the practice of buying and selling stocks without consideration for the fundamentals of the companies they represent. Both can be successful but being a profitable day trader is quite tough, and it is much simpler to become a successful investor.
👉 In addition, day traders in Nigeria can benefit the most from trading for brief periods. Nigerian day traders must keep a careful watch on the market during trading hours, and while this seems like an extremely labour-intensive strategy, it is much better than consistently trading for extended periods, because:
➡️ An inordinate amount of time spent on diagrams and charts may induce mental fatigue and disorientation.
➡️ Typically, volatility lessens after the first 90 minutes of trade.
➡️ There is a potential that after the first 90 minutes of trading, the volume of shares traded would decline.
➡️ You will be competing with seasoned traders whose manoeuvres could easily bewilder you. During this time, skilled traders are attempting to manipulate rates and graphs, and a novice trader should not be dabbling in the market.
👉 When the stock market first opens for business in the morning, during the first 15 minutes of trading, the market is still responding to the news from the previous day, and seasoned traders are ready to make their move currently.
👉 Subsequently, it is strongly recommended that Nigerian traders, especially beginners, avoid the market during the first fifteen minutes.
👉 If traders feel that they need more time to observe the market to allow them to make more informed trading decisions, they could extend their trading time. Most of the time, the calmest and most stable trading period occurs in the middle of the trading day.
👉 People are now holding their breath in anticipation of the dissemination of further information. Because the stock prices have already absorbed most of the day’s news releases, many investors are focusing their attention on the movement of the market for the remainder of the trading session.
👉 Because prices remain stable over this time, it is an ideal time for novice traders to enter the market because activity levels are lower, and the potential profits are easier to anticipate.
👉 The last hours of the trading day will again see an increase in both the market’s volatility and its volume.
👉 However, tendencies in day trading on the stock market show that the last hour of trade could be like the first hour, with sudden price reversals and significant price movement, especially in the final few minutes of trade.
👉 Day traders on the NGX often look to close their positions or join a late-day surge between the hours of 1h30 and 2h30 hoping that the momentum will carry over to the next trading day.
On Which Day Should I buy shares in Nigeria?
👉 There is anecdotal evidence that the stock market falls the greatest on Mondays following a weekend of negative news. It is also possible that individuals dislike returning to work on Mondays, resulting in a gloomy stock market.
👉 In contrast, the Monday Effect or Weekend Effect, as it is called, has disappeared over the previous few decades. The performance of the stock market on Mondays does not vary much from the performance on other days.
👉 Therefore, you should purchase stocks anytime you have the funds, given that you have carried out a thorough fundamental and technical analysis of the stock and the company.
👉 The absence of the Monday Effect implies that there is no optimal day to sell stocks. People used to recommend selling on Friday to escape the probability poor day on Monday, but in today’s market, this approach makes no sense.
During Which Month Should I buy shares in Nigeria?
👉 There are several ideas and adages about the optimal month to purchase or sell equities. There is also the January Effect, which indicates that market categories do poorly at the beginning of the year.
👉 As part of their year-end tax preparation, investors often sell some equities. They want to lock in losses or realize capital gains when it is advantageous from a tax perspective.
👉 This could provide investors with an opportunity towards the end of December or the beginning of January, resulting in the January Effect.
👉 To invest, however, it makes little sense to store capital from May until the end of December. You will lose out on stock market profits if you sit on funds while waiting for a market entry chance.
The Best Share Brokers in Nigeria
👉 In this article, we have listed the best brokers that offer share CFDs to traders in Nigeria. We have further identified the brokers that offer additional services and solutions to Nigerian traders.
Best MetaTrader4/MT4 Shares Broker in Nigeria
👉 Overall, IC Markets is the best MT4 Shares Broker in Nigeria. IC Markets’ MetaTrader platform has a wide variety of third-party add-ons for doing market analysis and making trades.
👉 MetaTrader is a popular trading platform, and it may be enhanced with the aid of IC Markets’ independent, add-on features.
Best MetaTrader 5 / MT5 Shares Broker in Nigeria
USD 25 / 10390 NGN
CySEC, FSA-St-Vincent, FSCA
MT5, MT4, OctaTrader
Account Activation Time
👉 Overall, Octa is the best MetaTrader 5 / MT5 Shares Broker in Nigeria. Octa is a household name in Nigeria, and despite being an offshore broker, it offers affordable terms to Nigerian traders.
👉 Octa’s MetaTrader 5 is a powerful implementation of the industry standard trading platform, allowing experienced traders to conduct in-depth fundamental and technical analysis using a suite of indicators and tools.
Best Shares Broker for beginners in Nigeria
👉 Traders new to the market can easily learn the ropes with the help of a wide range of educational resources made available by CM Trading.
Best Low Minimum Deposit Shares Broker in Nigeria
USD 100 / 41450 NGN
Account Activation Time
👉 Overall, Alpari is the best Low Minimum Deposit Shares Broker in Nigeria. Alpari offers Nigerian investors a comprehensive portfolio of trading products as well as a powerful and mobile trading platform. Alpari enables traders to get started with a modest minimum deposit and the convenience of an NGN-denominated account.
Best ECN Shares Broker in Nigeria
👉 Overall, Exness is the best ECN Share Broker in Nigeria. Exness is frequently recognized as one of the finest ECN share brokers in Nigeria, as shown by its capacity to gain 15,000 new customers every day.
👉 Exness offers Nigerians fresh and novel techniques for selecting which shares to trade on MT4 and MT5 through their platform.
Best Islamic / Swap-Free Shares Broker in Nigeria
USD 100 / 41450 NGN
MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central
Account Activation Time
👉 Overall, AvaTrade is the best Islamic / Swap-Free Shares Broker in Nigeria. AvaTrade caters to all Muslim traders’ halal trading requirements.
👉 AvaTrade has over 1,260 instruments in addition to competitive trading conditions and a large choice of financial instruments across several asset classes.
Best Shares Trading App in Nigeria
FSC, FSCA (south africa), ASIC, CySEC
MetaTrader 4, MetaTrader 5, WebTrader, FBS Trader – all in one mobile trading platform.
100% Deposit Bonus
Account Activation Time
👉 Overall, FBS has the best shares trading app in Nigeria. FBS is one of the best trading software that provides mobile solutions to Nigerians without desktop computers.
👉 FBS offers a very enticing no-deposit bonus and leverage of up to 1:3000 on major instruments. Furthermore, FBS is one of the few brokerages that provides leverage up to 1:3000.
Best Lowest Spread Shares Broker in Nigeria
👉 Overall, HYCM is the best lowest spread Shares Broker in Nigeria. Trading on the MetaTrader platform is straightforward using HYCM, and the overall price for the HYCM Raw account is 0.6 pips, which is comparable to other providers’ costs for trading the EUR/USD (after commission).
Best Nigerian Naira Trading Account Shares Broker in Nigeria
👉 Overall, HF Markets is the best NGN Trading Account Shares Broker in Nigeria. Because of its NGN-denominated account and support of local payment methods, HF Markets is one of the best STP and ECN brokers for Nigerians.
👉 HF Markets can supply its services to worldwide traders because of global legislation and a plethora of registrations. Because of this strategy, traders believe they are being treated properly by HF Markets.
Best Nasdaq 100 Shares Broker in Nigeria
👉 Overall, Capital.com is the best Nasdaq 100 Shares Broker in Nigeria. Given the variety of markets offered, Capital.com is the best CFD broker for Nigerians. Nigerians have access to over 3,000 stock CFDs, including the Nasdaq.
👉 Capital.com is well-known for its low-cost commission-free trading, in addition to delivering some of the best currency and equity spreads.
Best Volatility 75 / VIX 75 Shares Broker in Nigeria
👉 Overall, Saxo Bank is the best Volatility 75 / VIX 75 Shares Broker in Nigeria. Saxo Bank is your best choice if you are a professional in Nigeria and want to trade the VIX. At Saxo Bank, traders can conveniently and rapidly make free deposits and withdrawals.
Best NDD Shares Broker in Nigeria
USD 200 / 82900 NGN
Account Activation Time
👉 Overall, easyMarkets is the best NDD Shares Broker in Nigeria. easyMarkets is yet another well-known name in the forex and contract-for-difference (CFD) trading industries.
👉 This is particularly true given that the broker has received over 37 accolades in appreciation of its services, innovations, and outstanding ECN execution on transactions.
Best STP Shares Broker in Nigeria
400 Nigerian Naira equivalent to $1
FCA, ASIC, CySEC, EFSA, JSC
• MetaTrader 4
• MetaTrader 5
• Admirals Mobile App
35 Forex Currency Pairs
Account Activation Time
👉 Overall, Admirals is the best STP Shares Broker for traders in Nigeria. Admirals offer Nigerians a variety of account choices, including those with lightning-fast ECN and STP execution, with minimal slippage and no requotes.
👉 Admirals offers extensive research tools, educational materials, and some of the best trading conditions available.
Best Sign-Up Bonus Shares Broker in Nigeria
USD 1 / 415 NGN
Account Activation Time
👉 Overall, InstaForex is the best shares trading sign-up bonus broker in Nigeria. When Nigerians open their first account with InstaForex to trade overseas shares, they are given a $1,000 no-deposit incentive.
👉 This is in addition to a tempting welcome bonus of 30% of their first transaction amount.
How will Nigerians know when a stock is a solid investment option?
👉 When an investor is convinced that a company’s price will grow in the short or long term and is prepared to hang on to it until it does, it is the optimal moment to purchase the stock.
👉 When deciding whether to purchase stocks, it pays to be well-informed, and one method to do so is to research the firm itself. Interested investors may get several financial reports and earnings reports from reputable online sources or the Investor Relations section of a company’s website.
👉 To diversify, it might be a promising idea to acquire stocks in a variety of sectors, but it can be helpful to start with a firm or industry with which one is acquainted. Understanding the firm may provide context for the earnings reports.
👉 Understanding the value of a stock is always dependent on the comprehension of the company it represents. Is the business a worthy investment? Are its finances and development prospects sound? Consider the following factors when considering the purchase of a stock:
The Price Range at which Nigerian traders are willing to purchase the share
👉 If an investor has a certain firm in mind, establishing a price range in which they would be willing to purchase shares of that company may help them select. This is possible via the use of analyst reports and consensus price targets, which represent the average of expert views.
Whether the stock is undervalued
👉 There are several methods for determining worth. The most used valuation indicator is the price-to-earnings ratio (P/E), which divides the price per share by earnings per share.
👉 The smaller the number, the less significant it is. In addition, you can compare the company’s P/E ratio to others in the industry. In 2023, the P/E ratio for Nigeria Weighted Equities was 107.985, compared to 20.073 the previous year.
👉 The Nigeria Weighted Equities P/E ratio is updated annually, with historical data from December 2014 to December 2021 accessible. The P/E Ratio is just one metric of several others that Nigerian traders must consider when they decide whether to purchase a share.
Discounted Cash Flow Analysis
👉 A discounted cash flow (DCF) analysis, which takes anticipated cash values and discounts them back to the present, is another method of assessing value.
👉 This eventually provides an investor with a theoretical price goal, but if the actual price is below the target, it is undervalued and theoretically a smart investment.
Whether the company pays dividends
👉 A firm that distributes earnings to shareholders in the form of dividends is not always a superior investment, but dividends have played a significant role in investor returns during the last 50 years.
Important Factors for Nigerians to consider regardless of when they buy shares
Make sure that you have a solid plan
👉 Decide on your investment timeframe and determine what the reason is for investing, whether a one-time investment or something that you can grow by adding funds frequently. You must answer such questions to ensure that you know how you will invest your money.
👉 This will ensure that you can practice discipline and remain committed to your long-term goals.
Cultivate a long-term approach
👉 A current short-term decline in stock prices will not have a noteworthy influence on your long-term gains.
👉 It will not have the same effect as missing out on a handful of the market’s best days. Moreover, if you purchase equities regularly using dollar-cost averaging instead of hoarding cash, you will do better than if you attempt to time the market.
Make sure you understand volatility
👉 Every day, the market’s value fluctuates. Certain equities, including growth stocks, are more volatile than others, including value stocks.
👉 High-flying growth stocks that plummet at the first sign of problems are not suitable for everyone. Choose equities that correspond to your risk tolerance and risk profile.
Make sure that you always diversify your portfolio
👉 Investing in many market sectors helps lessen the effects of market pressures that only affect specific businesses. Thus, by researching throughout stock market sectors, you could locate additional investing chances in every type of financial market.
You will often be wrong, and there is no shame in that
👉 As an independent stock investor, you will not always choose winning stocks. This is another reason why Nigerians should invest in a variety of firms and industries.
👉 Then, if your investing thesis proves to be incorrect, it is time to sell and invest your funds elsewhere.
👉 Learning when to buy shares can seem like an extremely daunting task, especially for new traders and investors in Nigeria.
👉 However, when an investor considers corporate health, general market circumstances, and their own financial requirements for both short-term and long-term objectives, it becomes much easier to choose when to buy, sell, or keep stocks.
When is the best time to buy shares in Nigeria?
The best time to buy shares in Nigeria is dependent on various factors such as market conditions, economic indicators, and company performance. It is generally advised to buy shares during market dips or corrections, when prices are lower, as long-term investments.
How do I determine the best time to buy shares in Nigeria?
The best time to buy shares in Nigeria can be determined by monitoring market conditions, studying economic indicators, and keeping up-to-date with company news and financial reports. You may also consider consulting with a financial advisor or investment professional for personalized advice.
Can I buy shares in Nigeria when the market is down?
Yes, you can buy shares in Nigeria when the market is down. This is known as buying low and selling high and can be a good opportunity for long-term investments.
Should I only buy shares when the market is up?
No, you should not only buy shares when the market is up. While the market is up, shares tend to be more expensive, and it may be a better opportunity to buy when the market is down.
How do I know when the market is up or down in Nigeria?
You can monitor the stock market performance in Nigeria by keeping up-to-date with financial news and following market indices such as the Nigerian Stock Exchange All-Share Index (NSE ASI).