The Stock Traders Mindset pt 2
Submitted On 2008-07-30

Every genuine stock trader I have encountered so far in my almost ten years of stock trading and analyzing of stocks all have one common denominator; they all believe that everything is possible in the capital market.

The mindset of a stock trader is a comprehensive description of the mindset, thought pattern, believes, heart beat, and approach to stock investments. The traditional stocks investor is averse to taking risk, plays safe, takes his time, is not knowledgeable of the undercurrents of equity investments, he is grossly ignorant of the dos and don’ts of stocks investment, he is a passive player in the very active terrain of the capital market. No wonder they make just 10% of the over 12 trillion naira that exchange hands daily in the capital market and they constitute about 90% of investors that lay claim to owning shares of companies.

Stock traders smile to the bank everyday with about 90% of the over 12 trillion naira that actively is changing hands in the capital market, they make just 10% of investors in the Nigerian Stocks Exchange. Stock trader as the name implies buys and sells stocks; the emphasis is on the word ...TRADE... there is a constant exchange of stocks for money, it is his trade-mark.


If you take a close look at the daily, weekly and monthly trading, you will observe that it is the sector leaders that lead in volume of trade, they are the ones that command more patronage, their daily trade volumes is in millions. Now, this is very important to the stock trader for the sake of effective and unhindered trading.

Let me describe how this mindset works. High liquidity means high trade volume; stock traders Focuses on high volume stocks, therefore, he knows it is dangerous to buy into a company that does low trading volume, why? because when he wants to sell, it will be difficult to do so.

2. HE CONSISTENTLY LOOKS FOR OPPORTUNITIES OF HOT STOCKS TO INVEST IN The capital market is a beehive of investment opportunities for all investors to make fabulous returns. These opportunities come in different shape and sizes; also they come in different colorations, but it is the seasoned stock trader that is able to grasp them because he consistently looks out for them.

The stock trader knows the addresses of where to locate these openings, He goes to investment columns in daily newspapers, in investment newspapers, stock investment programs in Radio and Television, at seminar venues and stock investment websites.


Equity investment education is paramount to the stock trader, He knows acquiring stock trading understanding is non negotiable, he knows the knowledge of yesterday at best is good enough for today but certainly not for tomorrow.

You will always find him at seminar grounds both paid and free, most stock traders do subscribe to top stocks newspapers, they are on the list of first class stock investment newsletters of stock trading related websites on the internet.


Stocks’ trading is a full-time vocation, so important that it cannot be left completely in the hands of a stock broker, which in my considered and humble opinion can be detrimental to your investment health.

Therefore, by the foregoing, the stocks trader is actively engaged in trading, it his passion, he derives a thrill from trading in hot stocks that sees him growing his portfolio to enviable heights.

Conclusive, it pays to cultivate the mindset of a stock trader. All over the world, the best performers in equity investment have been known to be stock traders. You now have their secrets at the tip of your fingers, what are you going to do with it?.

Target Audience: Stock traders, investors, publishers

Tags: stocks, investing.investment,finance, finances, stock trading, stock market investing

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John Efetobor is a Stock Analyst and Investor. Visit:

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