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Nairametrics|Greed is one of the most repulsive, yet common human trait. It is also an essential quality needed for success as a trader in the stock market. Buffetarian philosophy advices one to be greedy when others are fearful. No one ever states when one should stop being greedy.

I had bought a tranche of United Capital shares at ₦2.45 naira on purely fundamental reasons. The stock peaked sometime this week at ₦3.90 naira per share. Almost 60% profit in six months.Then the stock market turned r and the stock began to drop. While I feel both the pull back and bearish market are momentary, the uncertainty in the economy and country could make them last longer.

Leaving me in a dilemma. Hold or sell? All through today’s trading session, I kept moving my mouse on the sell button. Sell or hold kept ringing in my head. The stock will advance when a dividend announcement is made, but how low will it go till then? Jamb question.

So I went in half way. Sold half of my United Capital at a 45% gain. If the tide turns, I will sell the rest of my United capital shares at a stop price of 3 naira, which gives me a 20% profit. Higher than the yield on six- month treasury bills and the inflation rate. Back to the question: When does one walk away from a stock? That’s another jamb question. I don’t have an answer.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com


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