A. This is a bitter pill to swallow but it must be said with your trading.
I personally exit any trades that are moving in the wrong direction. By exit, I mean cut my losses short, do not even think about averaging down and move onto a next the next one.
You see, with trading and investing, the general rule for success is to never add to a losing position or average down. If a share or any market is going the wrong way, it is crucial to cut your losses quickly, before emotions start to take over, and move on to a better and a more profitable trade.
As soon as you hold onto a losing position there are a few issues that will follow:
1. You'll become emotional and start to look for reasons to hold on.
2. You'll feel unnecessary stress and anxiety while holding onto a big losing position.
3. You'll set a precedent for the next time you take another trade where you'll hold onto every losing position with the hope it will turn up eventually.
If you want to take trading more seriously to profit on a more consistent basis, you'll need to follow a proven strategy, with strict money management rules to enter and exit each trade you take.
The trick is to ride your winners and to cut your losses short, before you start to feel attached to your trades.
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Q. “Is your Red Hot Storm Trader SMS service for people that have knowledge on how to trade already or not? What will I receive when I join Red Hot Storm Trader other than the signals? I will appreciate your feedback and your invaluable guidance in the right direction before I choose to join you.”
A. Red Hot Storm Trader is a service for two types of people.
First, for those who have zero knowledge whatsoever about trading.
And second, for amateur traders who are looking to improve or optimise their current trading success.
When you join Red Hot Storm Trader, you'll receive a free report called “Secrets to Successful Trading”. This guide will introduce you to what trading is all about, how the trader service and CFDs work and what you must do every time you receive an SMS or an email.
Also, whenever you receive an email from me, at the end of each e-mail there'll be further essential information on:
1. How to place the actual trade.
2. Three essential, money management rules to never blow your account and to maximise your winning trades.
3. Who and how to set up an account with a list of approved brokers.
4. Essential trading terms you'll need to understand, with every SMS and email that we send to you.
Interested?: The secret strategy long-term investors use to keep R400,000 out of SARS pocket and in their hands.
Q. “Now that Moody's has kept the rating at "Investment grade", what do you think will happen to the rand?”
A. I stand by the chart analysis that the rand will continue to weaken in the next few weeks.
There are many issues out there that are worse than a potential Moody's downgrade. Also, South Africans and foreign investors will remain cautious / pessimistic for the re-ratings to take place in November 2019.
This is because the ball is all in just one court - Moody's. The rest of the major agencies have rated South Africa at junk status.
“Wisdom yields Wealth”
Analyst, Red Hot Storm Trader