The Steinhoff debacle hurt a lot of investors.
If you held Steinhoff shares before the crash - you'd be down around 97% on your money today.
And the chances of ever recovering all the losses are close to zero…
But what you should know is that situations like this can be avoided.
There are at least four clues to follow that are warnings signs of an impending disaster like that of ... ››› more
Today I want to explain one of the biggest mistakes investor's make.
It has nothing to do with what you invest in, where you invest or how much you invest. It goes much deeper than that.
It's got to do with your emotions and behaviour.
The fact is, every investor experiences it at some point. And if you keep doing it, you're guaranteed to lose a fortune.
Let me explain…
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I know the promise of fast profits with trading sounds great and that this is the prime reason people are drawn to the world of trading.
But the flip side to fast profits are fast losses. What most people forget or ignore is that where there is high reward, there is always high risk.
And that's I want to bring to your attention today.
Here are three of the most common novice mistakes ma... ››› more
There are many widely available tools, tricks and techniques that will help you spot good businesses that are likely to increase in value.
But do you know how to spot companies that are going bust?
Well if there's one person who does, it's Scott Fearon.
An extremely successful money manager, Scott Fearon has shorted more than 200 companies that eventually ended up at zero. And spotting th... ››› more
I don't think there's a thing as the “perfect” stock. Yes there are stocks that demonstrate consistent profit growth, churn out cash flow and reward shareholders on a yearly basis.
But every stock has its flaws.
Whether it's way too expensive, over-hyped, worryingly cheap or just run out of steam, investors could easily fall for buying the a stock that looks attractive but ends up bust... ››› more
With the growth of the Internet over the past decade or so, we conduct so much of our lives online.
Many of our online activities involve money. Think about banking. You don't need to receive a statement via post, you can view it online. You don't need to visit the bank to transfer money, you can do it online.
But with this revolution comes the risk of losing your money to scammers. While th... ››› more
Unfortunately there is no blueprint to success on the stock market, but various studies show that certain factors can make a difference to your long-term returns.
So how can you include these factors in your investment strategy?
Read on to find out…
History pinpoints some key performers and laggards on the stock market
The studies that look into the long-term returns of certain st... ››› more
Once you decide to invest in property, you take on the mammoth task of finding the right property for you.
There are a number of things you need to consider. This includes how much you can afford to spend, the demand for rental properties in the area and where you're going to hone your search.
Investing in property is all about generating an income from renting out your property and seeing t... ››› more
When you come across a seemingly good company with a share price that seems lower than it should be, before buying you need to check it's not a value trap.
So what should you do if a company looks great, but its share price seems abnormally low?
It could be a great investment opportunity, but it could be a value trap.
Read on to find out what you should do…
What is a value trap?
... ››› more
At certain times of the year, a large number of professional and institutional traders switch their computers off and head off on holiday.
We're just coming out of one of the quietest periods on the markets, over Christmas and New Year.
So when the markets are quieter, should you trade?
Read on to find out…
When the professional forex traders take a holiday, so should you
If yo... ››› more
The holidays are almost here and that means the spending frenzy is well on its way. Retailers will go out of their way to make their special offers more enticing and convince customers to shop like there is no tomorrow.
The question is what will you do? Will you give retailers and marketers satisfaction? Will you shop ‘til you drop or will you be more responsible and protect your savings from... ››› more
Everyone can fall victim to credit card scams. Knowing how to protect yourself and watching out for potential threats can make it much more difficult for scammers to take control of your credit card account.
Don't think that it can't happen to you. Because it can. And Christmas is that time of year when credit card fraud is at its peak.
Here are a few ways you can protect your credit cards fr... ››› more
Responsible financial planning includes proper debt management. You can't claim to be financially independent if you're still struggling with debt and even acquiring more debt than you already have.
Debt management doesn't have to be difficult, as long as you act responsibly and practice self-control and discipline.
In order to take control of your debt, take into consideration the following ... ››› more
Credit cards can be your friends in times of need, but they can also turn into your worst enemies if you're not careful.
In a society that is addicted to consumption, it's quite easy to get buried in consumer debt due to overuse of credit cards. That's why it's so important to understand how to use credit cards wisely, in order to avoid getting into debt.
As convenient as they are, credit ca... ››› more
If you look at the behaviour of investors, it's surprising how many investors make the same mistakes.
If you can pinpoint these investor mistakes and have strategies in place to help you avoid them, your investing success should improve as a result.
So what are these common investor mistakes? And what can you do to avoid making these mistakes?
Let's take a closer look…
Investor mi... ››› more
The number of people struggling with consumer debt is on the rise, making it the perfect opportunity for credit repair scammers to thrive. If you're not careful, you could be the victim of credit fix scams, which promise to erase all your bad credit and give you a fresh new identity.
These scammers try to fool consumers with bad credit histories. They often promise to get consumers' names remo... ››› more
Do you find that you are spending way too much money each month? Do you secretly wish you could be more of a saver than a spender? Perhaps it's time to carefully analyze your spending habits and make some changes.
Lack of financial planning and overspending can put your future in jeopardy. That's why it's important to keep your spending in check and stick to a monthly budget.
Here are five i... ››› more
Many people feel unprepared when it comes to retirement. The simple thought of retirement can cause people to feel anxious and overwhelmed.
To prevent these feelings and become more relaxed when approaching retirement, you need to plan ahead wisely and avoid making some very foreseeable mistakes.
The following retirement planning mistakes are very common, but the good news is that they can... ››› more
The secret to financial security is discipline. When you stay focused, live within your means, save regularly, and have clear financial goals, you are more likely to become financially secure.
There are no shortcuts to financial stability. You have to set clear goals and work towards achieving them.
Here are five habits of financially secure and successful people.
1. They save consistent... ››› more
Penny stocks have the potential to make you handsome gains. But penny stocks also have a dark side.
There are those who take advantage of investors and use penny stocks as an investor scam.
Luckily, in South Africa with our modest sized stock market, scams aren't very prevalent. But, jump over the pond to the US and it's a completely different story.
Just because you reside here, don't th... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.