This is one lucrative business and requires dedication and time to be able to learn and start making profits. That is why today’s guide is dedicated to how to start trading in the Nairobi Stock Exchange in Kenya.
Stock trading in Kenya started a long time ago and has been running for decades. It involves the exchange of shares publicly by companies and the government. Here is a look at how it runs.
What is the minimum amount to invest in the Nairobi stock exchange?
For some brokers, there is no minimum amount required, but for others, it can go up to a minimum of about 200,000 Kenya shillings.
There will also be a small opening account fee of about 1200 Kenya shillings, as well as a monthly maintenance fee of around 100 Kenya shillings per month.
Steps to start trading Nairobi stock exchange
- The first step is to know which kind of assets and commodities you want to invest in and deal with.
- Choose suitable security that will ensure the safety of your investment.
- Choose a broker that will ensure quality delivery and fast deposits and withdrawals.
- Choose the stocks that you are going to deal with.
- One can also take a lesson or course on Nairobi Stock Exchange as it requires one to have details and be sharp.
How to buy securities
Securities include shares and bonds. When buying or selling securities, one must decide what company he or she wants to buy the stock.
Choose a company that is stable and strong one that is growing.
To choose the right company, there are things to consider, such as fundamental and technical analysis.
- The technical analysis-This method involves the study of charts to know the trends of the company
- Fundamental analysis-This involves the study of the company’s management and financial position.
The next thing to decide is selecting a stockbroker or investment bank.
With this, you will be able to buy and sell securities.
You can contact them and give them an order, and they will place it on the traders’ floor. Upon finding a suitable trader, the investment bank will then seal the trade.
Types of orders
In the NSE, there are various kinds of orders such as;
- Stop order
- Limit order
- The last one is that you tell the bank or stockbroker to place the trade for you.
Final Thoughts On Trading On Nairobi Stock Exchange
The stock exchange business is quite profitable and involves a lot of details to be able to trade successfully and make profits.
The best way to start is going for lessons and learning more about them.