Most people understand the basic concept of diversification: “Don’t put all your eggs in one basket”. However, it is easy to get caught in a trap. For example, some investors believe that they have effectively diversified because they hold a number of different stocks. They don’t realize that they are in for an emotional roller-coaster ride if these investments share similar risk factors by belonging to the same industry group or asset class.
The volatility of the Nigerian capital market and the current economic recession makes the market a clearly unpredictable field of play that requires more than the application of investment principles to the application of tact and strategy.
Hence to understand and analyze Nigeria’s dynamic and evolving capital market,one require real time commentary and analysis; broad in-depth and up-to-date company and market data as well as the right tools to visualize and act on that information.
To be correctly positioned to capture this market information as well as understand the underlying trends of the market, there is need for a continuous engagement platform that provides access to latest news and information which allows you spot the dynamics of the market.
Over the next few weeks, we will be looking at the various indices and technical indicators that could be used to understand the dynamism of the Nigerian capital market. Our goal with these series is to help you see through the noise of the marketplace in order to systematically make smart decisions about your money.
As we progress in these series, you will find the InfoWARE Finance Portal a very useful resource to apply the techniques and tact discussed in understanding the Nigerian capital market.
You can also get the same value that the InfoWARE Finance Portal offers on your mobile devices through the InfoWARE Finance app available on Android, Windows and iOS stores. We also encourage you to share your thoughts and join the conversation with us, as we proceed in these series via our twitter handle @infoWARELimited #InfoWARE
