In Nigeria, the daily commute can be very time-consuming. A report from Mustard
Insights lists the country’s leading commercial hub, Lagos, as one of the most traffic-congested cities in the world— with commuters travelling just over an hour on average each way. This can be an idling and expensive ordeal (especially when you're not using Shuttlers), with reports estimating that Lagos commuters who use public transport lose N79,039.40 in extra transport fares. At the same time, those in their own vehicles spend N133,978.68 annually in extra fuel costs yearly.
Instead of letting your time go to waste, we recommend trying more productive
activities. In our previous post, “On the Road: How to Stay Productive During
Commute”, we tackled how you can optimise your productivity during your commute, such as taking the time to reflect on yourself, organising your tasks into
smaller ones, and even just taking a break. But in addition to organising your work, you can spend time improving your finances through trading. Not only can you make up for the lost time and money, but you also supplement your regular income.
In this article, we’ll visit how you can boost your finances on your daily commute via trading:
What is trading?
Trading is the act of buying and selling securities, like currencies, bonds, stocks, and commodities. Unlike investing, which happens over years or decades, trading works in the short term and relies on significant price changes to make a profit by selling purchases at the right time. With mobile phones much more popular in this decade, many brokerages have made mobile trading apps to provide access to online trading platforms. These applications allow users to execute trades almost anywhere as long as they have an internet connection, including during a daily commute.
Considerations to make before trading
While trading can effectively boost your finances, it can also be a source of loss.
Compared to investing, trading is riskier— it needs a greater understanding of the
markets and high-risk tolerance so that you don’t get distracted by minor changes in the market or capital losses. Whether you are completely new or switching from
casual investing to active trading, you must also consider the additional fees that
come with trading. Almost all trading comes with capital gains taxes, and brokers
may charge several commission rates, all of which can add up costs.
With these factors in mind, it’s essential that you consider your financial situation
and personal risk tolerance to determine the best security to trade in. It’s also good
to research trading strategies and specific financial assets you’d want to trade in to
know the minimum requirements. If you’ll be doing most of your trading during your daily commute, it’s important to know when major trading initiatives are open. Two of the biggest securities include stocks and forex, which operate at these hours:
◻️ Nigerian Stock Exchange – Open Monday through Friday, from 9:30 to 14:30 WAT.
◻️ Nigerian forex market – The forex market operates 24 hours on weekdays. In Nigeria, the FX starts at 23:00 on Sunday and closes at 22:00 on Friday.
By doing thorough research on trading strategies and planning according to your
financial capability, it’s possible to earn from trading securities. If you’re interested but are new to the process, below are some tips to maximise trading:
Tips for Maximising Trading
Start with a demo or cent account
For those still experimenting with trading strategies and following market conditions, it may be worthwhile to spend time on a demo account. These trading accounts are funded with virtual cash, so there is no loss of real money when things go wrong. On the other hand, those willing to take a few risks can try out cent accounts, as these enable traders to trade at smaller lot sizes, tend to have little to no commission fees, and are usually swap-free.
Find a Mobile Platform that Offers Trading Tools
Given the risk of trading, it’s essential that first-time traders find tools to help
manage them. Many trading platforms have since transitioned from desktop to
mobile, making it easier to find an application with versatile functions. One of the most popular trading terminals is MetaTrader 4 (MT4), as it provides over 30 built-in technical indicators and 23 analytical objects to effectively react to market movements and identify entry and exit points. Via the MT4 mobile app, traders on
the go can also receive push notifications— helping them monitor their accounts and perform actions when needed. On the other hand, mobile platforms like Tickmill not only offer trading services but also have offices that host seminars and training sessions for local traders, providing them with information to help them maximise their trades.
Stay Updated on Market Trends and News
If you’re engaging in active trading, you must stay on top of financial news to make
informed trading decisions. Fortunately, most trading applications have their own
news section, allowing you to receive notifications on relevant trends and patterns.
As mentioned earlier, some security trades are limited to specific times, such as the
Nigeria Stock Exchange. During inactive hours, it’s well worth spending your
commute time researching your trade choices and following their social media to
keep up to date on company-related developments.
Relevant news events differ depending on what asset you are trading. Here are some types you should consider:
◻️ Stocks – Company buybacks, Earnings reports
◻️ Forex – Economic growth (GDP), Inflation
◻️ Commodities – Production boosts, Natural disasters (especially for agricultural products)
◻️ Bonds – Interest rates, Bond ratings
Daily commutes can be an excellent way to be productive, particularly in improving your finances. Trading can be a risky practice if you’re entering it blindly, but by incorporating trading strategies and knowledge, you can leverage your money for growth. Remember to be cautious and avoid accidentally showing crucial financial information to bystanders when using your phone in public, lest you attract unwanted attention. If you are looking to earn more money through trading on your commute, we hope this article proves useful.
Shuttlers is a tech-mobility company redefining the stressful and inefficient transportation narrative in cities and transforming it into a productive and stress-free experience for individuals, professionals, and corporates who want to move with purpose and comfortably.
We are focused on addressing the issue of inefficient transportation infrastructure and costs in Africa’s urban cities. Through our technology solutions, we provide a digital platform that enables bus ride sharing, targeted at individuals, professionals, and companies looking for smarter mobility options.
We transform stressful commutes to and from work into stress-free and productive experiences.