A trading strategy is essential. And even more so if you're a short-term trader. Trading geared instruments is a risky business. Trading without a strategy just adds to the risk you're taking on. Before you even think about putting a trade on, you need to ensure you have a trading plan first. So what should you include in your trading plan? Read on to find out…
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My very good friend and mentor, Brett Correia, has been trading in the markets for just under 20 years.
He's lectured over 10,000 hungry investors on technical analysis and different trading strategies. and is also one of the most successful ALSI (All Share index) trader's I know in South Africa.
He recently told me that his secret to trading success starts with 2 minute noodles…
Let... ››› more
When you trade, you need sound money management principles in place. Otherwise one big trade that doesn't go your way could leave you out of trading funds. That's where position sizing comes in. It ensures that you don't risk too much on one trade. And if the trade flops, you'll still have enough money in your trading pot to continue. Let's take a closer look at position sizing…
What is positi... ››› more
“I entered an ALSI trade the other day at 40,000. I wanted to protect my portfolio, so I set a stop loss at 39,910. The problem is, the market went below my stop loss (39,910) and I LOST even more than I should have. Please explain why?”- Roxy
Every good trader and trading book tells you how crucial it is to put in a stop loss when you trade.
But if you don't know HOW to put a stop loss... ››› more
By using triangular patterns, such as ascending and descending triangles, you can spot breakouts. And by acting on these breakouts, you hope to place profitable trades. So how can you spot an ascending triangle and a descending triangle? Read on to find out…
What are triangular patterns?
Triangular patterns form on charts when two trend lines meet, Max Munroe in Forex Round-Up explains. By ... ››› more
As a trader, you want to have a way of knowing when best to enter and exit a trade. One way of doing this is to use the moving average convergence/divergence (MACD) indicator. This technical analysis tool can help you pinpoint these buy and sell signals. Let's take a closer look at how you can use the MACD indicator to do that…
The MACD: A great indicator all traders can use
The MACD indi... ››› more
"Hi Timon, How many contracts should I buy if I have a portfolio of R20,000, when trading the ALMI?" - L.Y
If you don't know the answer to this question, then don't trade another ALMI until you've read this!
There are many different ways to calculate how many contracts you should buy or sell with any one ALMI trade.
But, let me explain to you what I find the easiest…
H... ››› more
There is nothing a short term break-out trader hates more than, a sideways market that doesn't move much.
When the market is directionless, there are so few trading opportunities to make big and quick gains.
Well, for the last five years, the market has been flat and boring and profitable trades have been very scarce.
But now the SAVI index is telling traders that there's a ‘profit pa... ››› more
Looking for a sure-fire trading strategy with a 100% win rate is like trying to find a needle in a haystack.
I assure you - It's an impossible quest because they don't exist!
You might not be able to predict the market, but you can beat it with a winning trading strategy.
Well, firstly let me tell you three reasons why no trader can accurately predict the markets and secondly, I'll show y... ››› more
If you have a few minutes to spare every few days, you have the potential to unlock thousands of rands in profits. This trading strategy doesn't require any previous experience, hard work or special equipment. You just need a cell phone. By following some simple instructions, you could be on your way to banking pay outs like R2,010. R2,261 and R2,308 just by trading indexes…
Today, we want to ... ››› more
Most people only buy cars when they feel financially confident. This makes sense because buying a car is no small commitment.
And it's precisely this that makes car sales so useful to traders.
You see, traders can watch car sales to get an idea of the economic health of a region or country. And this means they can use these figures to time their entry into different trades. Here's how...
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One of the biggest mistakes that traders can make is to overtrade. This is a big problem that faces new traders. There is a need to place lots and lots of trades. But do you know by overtrading, you're actually destroying your chances of being a successful trader? Let's take a closer look at why overtrading is so detrimental and what you can do to stop it…
The simple fact of the matter is you ... ››› more
One of the world's favourite breakfast ingredients is wheat. It goes into just about everything you dish-up in the morning. From cereal to toast to the flour that goes into your morning muffin or croissant, they all use wheat.
But today I want to tell you about a unique opportunity that could allow you to make a small fortune from this popular grain. And it's all thanks to cold weather in Canad... ››› more
"Hi Timon, I read an article by Marc Ashton who disagrees with your article ‘Five reasons you should start day-trading today'! What are your thoughts on these issues?"
This was a question asked by L.Y on the investorsclub.co.za.
I read the article by Marc Ashton, and that's the great thing about free speech…
Everyone is entitled to their opinion. In fact, his article was quite rea... ››› more
When it comes to the basics of using technical analysis, there are a few indicators that are essential. Moving averages, for instance, can reveal the direction of a trend. So what do you do once you see a trend developing? You need to be able to work out if there's momentum behind it or not. And one way of doing that is to use oscillators. Read on to uncover what you can tell from them…
If you... ››› more
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