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How to turn R8,029 into R16,539 from the JSE ALMI

by , 26 June 2020
How to turn R8,029 into R16,539 from the JSE ALMI
Q. “Hi Timon, I've recently joined Red Hot Storm Trader after following you for the last couple of years. I now feel almost ready to take action with my trading. Do you have a set bunch of questions you answer before you take a trade?”

 
A. Before I take a trade, I ask and answer the same seven questions each time…
 
1. Has a trade lined up according to my strategy?
 
2.  Do I have strict levels to get into my trade including (Entry, Stop loss and Take profit)?
 
3. Is the risk to reward level for the trade at least 1:1.5?
 
4. How much money am I willing to risk in this trade?
 
5. What kind of returns am I hoping to make with this trade?
 
6. Do I have more than five open positions (which is my max) when I take a new trade?
 
7. Do the fundamentals (news events) support my position?
 
If you can answer most of these questions, then you'll be well prepared for taking your next trade.
           
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What a profitable Red Hot Storm Trader has to say:
 
I am a subscriber on Red Hot Storm Trader and your last few trades were very successful, thank you.
~ Imtiaz Mohamed
 
Join in with your trading success starting today!
 
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Q. “In last week’s Trading Tips article, you made a prediction that the JSE All Share Index is most likely going to head up 26% in the next few weeks. As a follow up, I’d like to ask just three questions…
 
1. What is the difference between the ALSI and the ALMI contracts?
 
2. What is the initial deposit to buy 1 ALSI and 1 ALMI contract?
 
3. How much can I make on margin if I took the trade?”
 
A. Great questions… I’ll answer each question below… 
 
1. What is the difference between the ALSI40 and the ALMI40 contracts?
 
A. The ALSI 40 (JSE All Share Top 40 Index) is a futures contract that represents the Top 40 companies listed on the JSE.
 
The ALMI 40 (All Share Top 40 Mini Index) represents 1/10th of one ALSI Futures contract.
 
2. What is the initial deposit to buy 1 ALSI and 1 ALMI contract?
 
To buy 1 ALSI futures contract, on Pro Trader, it will cost you R75,075.
 
Each point that goes against or for you, you’ll risk or gain R10.
 
But not everyone can afford the ALSI contract and manage their risks accordingly.
 
That’s why the ALMI was created to make it more affordable for traders.
 
When you buy 1 ALMI futures contract, on Pro Trader, it will cost you 1/10th of the ALSI contract.
 
Which in this case will cost you R7,507 to buy 1 ALMI contract.
 
Each point that goes against or for you, you’ll risk or make R1.
 
3. How much can I make on margin if I took the trade?”
 
Currently the ALSI is trading at 50,050.
 
My most recent target price prediction for the ALSI is to 58,079.
 
This means, if you bought 1 ALMI contract and held the trade until it hit the target price, you could make the following on margin:
 
Entry = 50,050
Take profit = 58,079
 
Margin (deposit) per 1 ALMI contract = R7,507.
 
Step #1: Calculate points gained in trade
 
= (Take profit - Entry)
= (58,079 – 50,050)
= 8,029 points
 
Step #2: Calculate the percentage gained in trade
 
= (Points gained ÷ Margin per ALMI contract) X 100
=  (8,029 ÷ R7,507) X 100
=  106.95% gain
 
This means, even if you bought the ALMI contract currently and held it until it hit the target price – you could turn R8,029 margin into a R16,539 gain.
 
If you read everything I’m about to propose to you today, you’ll be set for life…
 
This method of income generating is the simplest, cost-effective and less time-consuming way to make money.
 
And you’ll need no more, than just 10 minutes a week to do this.
 
If I have been able to do this for the last two decades, I know you can achieve this as well.
 
   
Trade well, 
Timon Rossolimos,
Analyst, Red Hot Storm Trader 


How to turn R8,029 into R16,539 from the JSE ALMI
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