Stock trading and investment is the buying and selling of companies shares in the stock market to make profit or to earn dividend, it’s not a long term investment that most people believe. With adequate knowledge of stocks one can deploy the idea into investing in companies and later selling to execute your pressing needs.
Paying house rent modus: With this idea, assuming your house rent is N200,000 per annum and your rent expires by December 31 every year, by January 31 you need to invest N20,000 in a particular company, let’s say in the banking sector, February 28 you invest another N20,000 in another company maybe in personal care division, in March 31 you invest another N20,000 in Cement sector, by October 31 you should have invested in 10 companies, that means you should have N200,000, if the stock market is not bearish, you should have made profit by October, your N200,000 house rent should be ready plus capital gain and dividend, but if the market is bad like Covid-19 year, there may be a little short fall if there is no recovery towards the tale end of the year.
During bearish period, you get opportunity to buy cheaper stocks, No need to beg your landlord, when your rent is due, and you will get addicted to investing and easily defeat poverty, because every month end you will be angling to invest and you may add N5,000 plus the N20,000 for your investment account. It is better than saving in the bank because one good stock can yield over 20% gain per annum. Gradual and consistent Investment gives riches you can’t imagine, via compounding.
Buying land with stock investment, modus: You can also apply the same strategy to buy land, assuming the intended land cost N1,000,000, every month you invest N30,000 in good stocks for your land idea, by the end of the first year you should have N360,000 that is N30,000 × 12= N360,000, in stocks, if the economy is buoyant you should have made profit, by the second year you should have N360,000×2 = N720,000 with capital gain, you should have your N1m to buy your desired land.
Note: To implement this idea you must know how the stock market works or use the knowledge of stock experts else you may make loss.