Your Facebook Q&A for the week!

by , 22 September 2017
Your Facebook Q&A for the week!
We've recently hit over 13,000 likes on Facebook.

Thank you for all of the support and most of all, interaction.

Trading Tips Facebook is the one platform we can post brand new developments as they happen on the net.

Whether it be:
~ An interest rate hike decision
~ Firing of a reputable minister
~ Or even a friendly strike for the change needed in our country

This Facebook page is where we can post the latest findings, videos and even websites.

Today, I'll focus on answering the questions you've asked on the Trading Tips Facebook page.

Enjoy…

 

Q. How do I understand support levels when I buy?

 
Answer by Timon Rossolimos:
 
When you think of a support level, you can think of a floor.
 
If you throw a ball on the floor, you’ll see it bounce. This is because there is a barrier that is in the way of the ball which prevents it from falling through.
 
The same happens with the stock market. Sometimes, a price of a stock finds a level of support (floor), where the sellers refuse to sell below a certain price. And so, the price will continue to bounce up and down on this support line.
 
Once you find this strong support level, you’ll be able to pinpoint a strong entry buy level.   To illustrate this, let’s look at Shoprite. 

How R188 is Shoprite's big support level for 2017




Since February, Shoprite has found a strong support (floor) at R188.00.
 
This means that sellers are refusing to sell below this R188.00 level, which makes the level a strong place to buy at. So the trick is to find these support levels on charts, buy them and hold them as the price goes up.
 
Support levels are the most important levels I use, to help find high profitable trades for my Red Hot Storm Trader subscribers.

Q. How do I sign up on a trading platform?

 
Answer by Timon Rossolimos:
 
Nowadays when you sign up with a Forex or CFD broker, they will offer their trading platform to you.
 
With every trading platform you’ll be able to: 
View charts where you can add indicators and lines
Buy and sell financial instruments
View your portfolio balance
View a depth table (where you can see the bids and offers coming in)
So, all you’ll need to do is go to the registered broker’s website and look for the sign up button… Fill in the FICA documents and fund your account, and they will then send you a link to get access to your trading platform…
 
If you’re not sure which platform you’d like to get started, we have three recommended brokers which you can have a look at. 
 
Click here to read about them.

Q. How much is the minimum you need to trade?
 
This purely depends on what financial instruments you would like to trade.
If you’d like to dabble in the Forex market, then you’ll need no more than R500 to get started.
 
You won’t have to worry about any monthly fees or any brokerage costs. Only thing you’ll have to worry about is the tight bid and offer spread that you’ll pay to get in and out of your Forex trade.
 
For CFDs and shares, I’d personally recommend you start with around R5,000.
The reasons are you want to: 
Be able to pay any brokerage fees
Pay the small monthly JSE data fee to stream any instrument
Be able to buy or sell more than one stock at a time
Grow your portfolio at a good rate.
 
Also, I’d suggest you phone your broker to find out exactly what their minimum requirements are to get started, as they all differ.
 
Keep your questions coming on Facebook.
 
You never know…
 
Your question could feature on the next Trading Tips mailbag newsletter.
 
PS: Join the Trading Tips Facebook page today and you'll also receive free trading webinars on what's hot in the market. Click here to join. 

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