If you have always been interested in trading NSE shares, the best way to learn is by doing. However, you might not have the cash to undertake the actual trading. It is also not wise to start the journey of trading with real cash due to the risks involved.
This is where the concept of Fantasy or Virtual Trading comes in. This is where you trade in stocks without investing actual money.
In a simple and costless approach, you could just use a spreadsheet. You decide an amount and buy shares based on the price at a given day. Days later you feed in the current price and see if you would have made a profit or loss. You then learn from what you did right or wrong.
You can also use the NSE virtual trading App or website. Here you will pay. For every KShs 100 paid you get KShs 10,000 to trade with. Just for emphasis the KShs 10,000 is not real money. It is just a virtual float which allows you to buy shares.
The good thing with the NSE platform is that you don’t need to do any calculations as you would on a spreadsheet. You also wouldn’t need to input any prices since the platform gives you the live prices from the NSE.
The virtual trading platform is however not an exact replica of the real thing. But it can be a good place to start. NSE needs to do a lot of work to make the simulator be as close to the real thing as possible.
It is rather strange that NSE does little to sell this product. It also doesn’t invest in keeping it updated. This if well harnessed can become one of the best cash earners for the Exchange. Alternatively they can concentrate on selling data and allow other developers to produce more advanced simulators.
Category Archives: Business
Keroche Breweries CEO Tabitha Karanja might be caricatured as the poster girl of tax evasion in Kenya, but the Keroche tax issues are more than what the media portrays.
This is how and why our manufacturing sector’s contribution to the GDP has fallen from 11% in 2012 to 7.2% in 2021. Yet Jubilee promised to increase it to 20%.
The issue about Keroche is not even about the weaponisation and politicisation of the tax machinery. It is not about whether she should pay taxes or not.
It is about the insanely high levels of taxation in Kenya and the complicated taxation system founded on colonialism. A beer costs the equivalent of KShs 100 in Uganda, KShs 60 in Ethiopia. But in Kenya it costs over KShs 200. Taxes in Kenya are higher than the price of the beer in other countries.
The alcoholic drinks tax code is insanely complicated. But this is deliberately so to facilitate extortion and frustration of local industrialists.
No industry can thrive or survive in such an environment. Tabitha is fighting a lost battle. Former manufacturers moved on long ago. They import everything from China branded with their Kenyan brand names.
Even tissue paper comes from China with local brand names. That is why you are groaning about its rising price.
This is what we should be discussing. But we are possessed and obsessed with politics. This is why we will never discuss the real issues. We are always blinded by politics. The politicians know this all too well. In their defense, we will support our own oppression.
The problem with most cryptocurrency investors is that they treat the cryptocurrency craze like religion. They never listen to the inconvenient truth. Below are some realities of cryptocurrencies which the enthusiasts find hard to swallow;
Cryptocurrency is backed by nothing and its price can be anything between zero and infinity. This results in extreme price volatility. You need nerves of steel to trade in something like that.
Cryptocurrency is not regulated by anyone and in case of loss there is no recourse in law or anywhere else. There is no one in charge. Nobody can manage the chaos in that space. It is a technical madhouse in which order cannot be enforced.
Cryptocurrency investment and trading carries such high risks that it cannot be differentiated from gambling. Such trading is highly speculative and carries massive risks because there are no circuit breaking mechanisms during times of high volatility.
Cryptocurrency trading uses computers and exposes the traders to risks of hacking. Your entire holding can disappear in a flash.
There is a lot which is unknown about cryptocurrencies. As such, a lot of scammers have built their business around these virtual currencies. It is hard to tell what is fake and what is real. It is impossible to tell what will last and what will fade away soon.
Investing in cryptocurrencies is an investment in hope. The future of cryptocurrencies remains shaky. The jury is still out there as to whether this is the greatest financial scam in history or whether it is the ultimate investment miracle.
The idea that a person can create money using a computer sounds too good to be true. If something is too good to be true it probably isn’t true. The cryptocurrency fantasy is impressive but not convincing.
The anonymity of cryptocurrency trading makes it susceptible to criminal activities. As such, risks of regulatory crackdowns will always be there. Such a crackdown can easily render your investment useless as cashing out could be outlawed.
Always bear these things in mind before taking a plunge. Also remember the risks of gambling such as addiction and emotional intoxication. Something this speculative can be addictive and enslaving.
Before trading in cryptocurrencies, it is better to trade is in less risky assets in order to appreciate how such trading works especially with respect to the cyclical nature of markets.
© Ephraim Njega