7 Rookie Investing Mistakes and How to avoid them

7 rookie investing mistakes

When it comes to businesses, there are no specific set of rules that will guarantee you success.

There are many different strategies or approaches that might work for you but might totally backfire when it comes to someone else.

However, when it comes to investing in the stock business, there are a few guidelines that you can follow. There are some clear Dos and Don’ts, which you might fail to see if you’re new in the stock world.

Here are seven rookie investing mistakes that rookie investors often make, and how you can stay a million miles far from them:

·      Day Trading

Day traders are the people who buy and sell multiple shares on the same day. While this might seem like a worthy risk to you if you know a very successful day trader, think twice before you decide to become one yourself.

First of all, day traders need really strong and speedy technology that help them understand the best deals, which you probably can’t afford if you are still new.

Secondly, unless you have a ton of experience in the field, you won’t be able to make the right calls even if you do manage to buy the equipment needed.

·      Overusing margin

When you use borrowed money to buy securities, it is called trading on margin. Many people use it to make extra money when they’re in short of cash.

However, a loss occurring on a stock you bought on margin is much bigger than one occurring in a normal scenario.

Not only do you have to endure the loss, but also have to pay back the loan you took from your own pocket, which is essentially an additional loss. Hence, it is recommended that you do not misuse the power of using margin.

·      Undermining yourself

Many people who are new in the stock market, get intimidated by the huge institutional investors and experienced brokers.

However, what you forget is they do not perform as well as they seem. If you invest some time in learning and researching the market, you might actually do much better than them!

A good amount of common sense and intelligence is what distinguishes a good investor from a bad one. If you think you have a good share of those, don’t underestimate yourself just because you have a different 8 to 5 job!

·      Believing everyone

When it comes to the stock business, most people think they are experts at it. That is a big rookie investing mistake. They will proudly discuss stocks in public and brag about shares they think are “about to do great”, which many people are bound to hear.

When you find yourself overhearing such conversations, or see a talk show in which some investment professional does a similar thing, don’t believe them right away.

Do your research, make sure you trust the company and understand why the share might do well. Most of the stocks that you hear about in such scenarios do not do that good in the long run.

·      Purchasing a stock because it’s price decreased

When a stock that used to have a high price, decreases all of a sudden, you might be tempted to buy it right away. Another rookie investing mistake.

But, beware! There might be very strong reasons to WHY the stock price fell, reasons which might indicate that the price will not go up anytime soon. In the worst case scenario, you might eventually end up with a totally failed investment.

·      Depending only on technicalities

Nowadays, people depend A LOT on technology to know which stock they should invest in and which they should stay away from. Hours of financial analysis and identifying patterns is usually what dictates a decision nowadays.

Even though these tools are really handy, don’t forget to do a qualitative analysis as well. Unless you take into account the current status of the company at the present time, or how it might change in the recent future, you might end up making a bad decision.

·      Not accepting your rookie investing mistakes

No matter which profession you are in, you should always have the courage to learn from it and correct yourself.

It is the same when it comes to stock business. If you make a bad investment, it is best to realize your rookie investing mistakes and move your precious money somewhere else.

Here’s How To Handle Getting Fired

how to handle getting fired

Over the last couple of years, the people who have been turned away from their jobs as the Kenyan economy suffers has risen exponentially.

From banks, to hospitals, to media companies and manufacturers, job losses have become the norm as companies resort to the only way to remain profitable, cutting costs and moving digital.

This has proven such a big disruption on the otherwise comfortable lives of the blue collar workers who are used to a salary each month.

Dismissal throws workers into the deep end and they struggle to cope with family and status since currently most household are being supported by a sole breadwinner. It can usually mean breaking up of family , frustration and finally depression and alcoholism or even suicides.

It is no wonder that companies are now offering to give free counselling to the workers it has laid off in a bid to help them absorb the shock.

However, you can survive this trauma with the right mind and as they say, victory loves preparation.

According to the Retirement Benefits Authority, only one in seven people are ready for retirement meaning that probably you and your circle of friends are living precariously.

In fact, true to the Njaanuary tales, Kenyans usually burn through their incomes before the end to each month. The Kenya Deposit Insurance Corporation, found out that only 3.2 per cent of Kenyans have more than Sh100,000 in their accounts.

“As at November 2017, the KDIC coverage level was at Sh268.1 Billion with 46.6 million accounts fully covered. This translates to 96.8 per cent of total number of accounts covered,” CS treasury Henry Rotich said in the recent budget proposals.

So when the news comes that you no longer have access to the glass skyscraper that has been your second home for years, with no savings you will need to think fast.

Don’t Burn Bridges

A flurry of emotions may be the first thing that flows into your head as the decision comes with surprise after much suspense and rumours as to who will face the axe. It’s not uncommon to feel anger toward the company and certain employees.

Try not to talk when angry and never bad-mouth a former employee or employer especially online which never forgets. That small sense of satisfaction from dissing a former company will ultimately be outweighed if it costs you a future job.

It may also help to maintain bonds with your former colleagues who could easily be your referees and may even help drop some openings. The employees who are nowadays clustered in WhatsApp groups will come in handy in giving support, financial advise and giving you hope although it can sometimes sound awkward.

After being fired, aim for next, not best as you try to figure out which direction to go to. A lot of the people get stuck trying to go off on some vision quest when they lose their job. Forget that. Get your next job.

Being stuck up to a career that pays as good as your last one or trying to stay in the same career can be associated with ego, you need to strip that and assume this is your first day out of college going into internship. Anything will do.

However while you are between jobs, you have time to clear your mind and plan your rebound. While you may feel that your future is uncertain, it’s important to realize that getting fired is not the end of your career.

Your lifestyle will also have to change, you must adjust it to your new realities or the bills will come up fast and drown you.

You can start mentally preparing for such a situation as Stoics suggested we take time off to practice worst-case scenarios. We should, for example, mark out a week, a year where we eat only stale bread and sleep on the kitchen floor with only one blanket, so we stop being so squeamish about being sacked or imprisoned.

But most importantly save up at least a month extra salary so that you can always have some sort of flexibility. Ideally you should save up three months of your salary at any given point, take up employment insurance and if this sums up with your exit package, then you can last over a year on an adjusted budget while you get back on your feet.

The most important thing to remember is that everyone is dispensable. Never get too comfortable on your job and always have a contingency plan.

Plus invest in your early years of employment so that you may have a fall back business which you can take full throttle or at least an idea of how to run a business, lest you risk burning all your savings and exit package on quick fix quail businesses.

Saving 101: A Little Saving Goes a Long Way


Haba na haba hujaza kibaba is a Swahili saying which loosely translates to little by little fills the measure. With Nairobi being ranked as the fourth most expensive city in Africa, Kenyans are always on the lookout for bargains and ways to stretch the shilling. Below are some tips to keep your spending in check and ensure you are saving up your coins.


1.Banking tips

A report by Financial Sector Deepening (FSD) in 2017 estimated the lowest cost to owning a bank account in Kenya to be around Kshs 6,436 per year . This is the average cost for withdrawals, transfers and account maintenance fees. How do you make sure that these costs do not go higher?

  • Plan withdrawals– Banks charge different withdrawal fees while some accounts come with a fixed number of free withdrawals per month. Make sure to find out also from your bank the charges of withdrawing from your bank’s ATM vs. another banks ATM. The difference could be much as from Kshs 30 to Kshs 200.
  • Separate your paycheck– (savings vs. current accounts). You can withdraw from a current account anytime whereas a savings account accrues interest and has limited withdrawals. You can approach your Human Resources Officer to divide your paycheck into these two accounts or have a standing order with your bank where at a specific time of the month, money is transferred from your current to savings account.
  • Low interest loans– The growth of the fintech industry in Kenya has led to the growth of many array of loans one can have access to. There are traditional banking institutions, Sacco’s, mobile money loans apps such as Branch, Tala and Mombo. A quick Google search will present you with tons of quick and unsecured loan options. Be sure to check the reviews of such apps/sites as well as their interest rates as the devil lies in the details.


2. Shopping tips

  • Wholesale shopping– Opting for this option saves you money per unit price of items.
  • Deals/discount sites– Be on the lookout for holiday sales such as Black Friday which has caught on especially with e-commerce players such as Jumia. There are also many sales in clothing and electronic stores during the Easter and Christmas period. Buying advance tickets to events on sites such as TicketSasa will always cost you less in comparison to buying them at the gate. Restaurants also run BOGOF( buy one get one free) offers on different days of the week such as Pizza Inn on Fridays.
  • Reward cards/Coupons– Be sure to take advantage of the loyalty cards offered by the various stores especially supermarkets where you accumulate points after every purchase. You are then able to redeem such points in store which goes a long way in achieving your saving goals. Most online retailers also provide coupon codes on their social media or on newsletter for their subscribers.
  • Do It Yourself (DIY)- You can save a lot of money but requires a lot of time input. The internet has infinite ideas on DIY that can be easily executed after a visit to your local hardware store for materials or also using easily available materials in your homes.


3. Expense tracking and budgeting tips

It is paramount to know your spending habits in order to have a clear picture on where you can cut your spending. There are many apps available that can help one track budgeted expenses vs. actual spending plus investments if any.  You can also create a personal expense tracking spreadsheet that can contain spending categories with set limits which gives you visual output whenever you go over budget. Most paid apps export also export their reports to Excel.


4. Alternative income tips

Are you pushed to the wall and have barely zero savings despite the above tips? You should consider diversifying your income streams. Have you invested in any stocks or bonds?  Do you know any no fee investment funds in Kenya such as one offered by  Mombo App?  Do you have any skills that you could use to do freelance projects? The earnings from such gigs could go into your high interest savings account which will slowly but surely increase the money at your disposal.





Blockchain VS Supply Chain: How the Blockchain Could Impact Your Business

blockchain technology for businesses

You will probably have heard the words crypto and blockchain thrown around over the last year or so. It seems to be a craze. The latest wave of something that people are getting passionate about. Everyone chasing the dream and wanting a bite of the cryptocurrency apple.

The truth is that the crypto world is still relatively obscure to most beyond these terms. Sure, most people can tell you what Bitcoin is. But that really does sum up the average person’s knowledge. Blockchain technology for businesses is a crucial part of this largely unknown world and it is potentially going to have massive repercussions in the real world.

Here’s the lowdown on Blockchain.

  • Ledger .It serves as a ledger, recording data securely about transactions. The data is secured using cryptography. Each transaction forms a block, and each block is then added to the chain. It is the online equivalent of stringing pearls on a necklace.
  • Can’t manipulate. Like a pearl it is not possible to manipulate the contents of a block. So, with a pearl it is either a natural pearl or it isn’t, with a block you can’t alter its structure. This means the data held on each block is preserved indefinitely.
  • Orphans. As blocks increase the chain lengthens. Occasionally there will be data sets or transactions that divert off the main chain. This could be for any number of reasons but most commonly it is because they don’t fit the original criteria of the chain. These sub blocks can then form smaller chains. These are called orphans.

So hopefully, that has enlightened you about how the blockchain works. And what it would look like if it was a physical entity. It is very much like your transaction history on your bank account, all categorised into blocks and stored securely in a way that people can’t access or manipulate it.

That is the key. The power to be free from manipulation.

And, that is why businesses everywhere are likely to adopt the Blockchain or a variation of the technology to record the data they need within their supply chains. Blockchain technology for businesses will be very lucrative.

So why hasn’t it happened yet?

Well the answer is both convoluted and simple. The simplest answer though is that the Blockchain is not a very quick chain. It takes time to record the data and it takes time for each block to be added. When you take into account the sheer volume of transactions any business makes in say a day then blockchain technology for businesses becomes fraught with problems.

This is partly the reason why there have been so many questions asked of Bitcoin’s credibility. It relies on the Blockchain and the Blockchain is notoriously slow. Meaning people would rather invest in other crypto-currencies that they can exchange faster.

Blockchain technology for businesses is being refined, it is being streamlined. Currently there have been other crypto-currencies using faster variations of the Blockchain or alternate versions. It could, in theory, if fast enough, be integrated to secure the data of all financial transactions made, everywhere, all over the world. Once financial institutions put this into practice the larger businesses tend to follow and this filters down until you have small to medium enterprises all using Blockchain technology for businesses.

Will we see it happening?

As it stands, it is at the toss of a coin. Currently the technology is robust enough to function but not fast enough to function. Businesses everywhere are therefore reluctant to place this otherworldly technology at the heart of their structure.

It is more likely that the Blockchain technology will pave the way for a new type of ledger altogether. One that takes what Blockchain has done and builds on it so that businesses have a technology they can integrate with no hassle. That is where the safe money would lie.

Blockchain has done a lot of the groundwork needed to revolutionise business transactions and supply chains, it is now that the world awaits an innovative successor to take the mantle and form a new and exciting core to businesses the world over.

It will happen one day, with some form of new secure ledger, that is almost a certainty. Is it going to be blockchain for businesses? Only time will tell.


Digital Currencies- Why Investing in Bitcoin is UNSAFE?


The Bitcoin market is really a hyped-up one that is instinctively leading us to too many risks; price unpredictability is just one of them. We understand that your yearning to get an investment with high returns may take you to this market, but trust us, investing here would only put you in some uncertain risks. So, in case, you were deeply tempted to invest in Bitcoin, reading these reasons would surely compel you to amend your decision.

 People, these days, are desperate to invest in anything that can bring them instant riches. But, is that really a reason to step into the world of digital currencies? Well, don’t be fooled by what they show you, know some of the major risks of Bitcoin, which can actually put you in trouble, once you have stepped into the world of digital currencies.

  • Intense Unpredictability

Don’t be fooled by them, there is way too much risk than you think. Investing in Bitcoin is risking yourself to the extreme, as the prices are extremely volatile here. Many top experts even are skeptical about it being an investment, in real. The fundamental analysts don’t find enough of an ecosystem surrounding Bitcoin to acclaim it as an investment.

Aren’t people just making such an imperative investment decision with inadequate information? Of course, they are, which in turn, will just be taking them down in the end. One might consider it one of the best short-term investment plans, but certainly, it is not.

  • Hackers Seizes it Easily

Cryptocurrencies are easier to lose – This question matters a lot, whether do you keep the bought cryptocurrencies in the smartphone’s wallet or in the exchange? Well, the former route is the better option, comparatively. If we believe the researchers, there have been cases, where billions of dollars worth of Bitcoin were lost on exchanges. Of course, the hackers snatched it away. Isn’t that a big reason to secure your Bitcoin inside your Smartphones? Imagine how much can one loose to hackers, just with a few clicks. Ask the experts, where to invest money, and they will never suggest you investing in Bitcoin.

  • Security Concerns

The Securities and Exchange Commission and Consumer Finance Protection Bureau have become more active in the cryptocurrency oversight. Moreover, they have been warning for a very long time about the frauds that are occurring in the exchange. So, don’t you think we all should have understood by now, the jeopardy of being a part of this market? We mean, how can anyone still exist at a place, where unsuspecting investors and fraudulent activities are everyday’s matter?

  • An Unfettered Space

Don’t enter this unfettered space- Bitcoin market is not regulated by any bank or government entity. There exists no big authority, which can be reached for grievance redressal. You must know how the bank compensates when you buy something with a credit card and get ripped off, right?

Don’t expect the Bitcoin Exchange to compensate anything when you are completely ripped off. Consider it impossible to get the money back when you are in this market. Those who are already stuck in this market understand the pain of investing through unregulated schemes. So, experts are choosing not to recommend this as an investment with high returns.

  • Fees are Charged

The idea took the turn soon- So, initially, the idea was to create a back alternative, which could provide people the option of paying low fees. But, later it changed. What didn’t change was to cost a certain amount of the people. Trading cryptocurrencies will still cost you, the percent of the total transaction amount, which actually depends on the exchange. The fee charged depends on the total exchange done on the Bitcoin, worldwide. But, the more people trade in Bitcoin will lead to a higher fee, which simply means more fee will be charged. So, it is anyway an unprofitable deal for anyone.

The Verdict

Bitcoin might seem like an investment with high returns, but, after digging deep inside one knows how jam-packed this market is. How can anyone ignore all of those dicey paths, which are simply inescapable? It is therefore suggested to keep digital currencies like Bitcoin out of your list when it comes to investing in a good place.

All we would advocate is to probe into the pros and cons of this market before actually investing here. Don’t get fooled by the ‘made-up’ benefits that they flaunt to capture more investors, every now and then.