PLAYING STOCKS WITH 'SCARED' MONEY.

You can’t succeed in the stock market if you are playing with ‘scared’ money, by that term; I mean money you will need to solve your short term problems, like money for rent or for the kid’s school fees. This is because the probability of making a wrong decision will be high, owing to your State of mind as regards the money which you don’t want to lose. There will always be the risk of loss of capital. Investing with scared money may push you to make more mistakes.

For further explanation, the money you have allocated for investing is not to be used for any other purpose, until you have achieved some reasonable success. If you can’t afford to leave the money invested in stocks for some time, you better avoid becoming involved in the venture. If you can afford only N5000.00 per month, you can invest comfortably in the stock market. Your progress may be slower than if you started with a bigger amount of money, but the most important thing is that you begin at all.