“I read a trading quote the other day:
How do u evaluate the feedback if you followed all the setups, entries take profit and stop loss requirements?
I think a trader will have difficulty with emotions when entering another trade if he or she can’t find a reason as to what went wrong with the losing trade.”
A. The feedback is not seeing what went wrong but rathe... ››› more
Meet Joe - a 60 year old man with pension savings of R3 million.
Like most pensioners, Joe's greatest fear is he'll run out of money before he dies.
After all, most retirement products only plan to look after you for 20 years.
Since South African men and women have a 50% chance of living beyond 83 and 87 respectively (the age most retirement plans work on for each gender), running out of... ››› more
I don't like having to look for new tenants, setting up rental contracts, or making sure payments have been made each month.
That's why I'm always on the lookout for opportunities to make my life easier.
And I've found just that.
Without dealing with an estate agent, or meeting up with a single person you can get:
Higher rental income than you currently get (7% on average)
Guaranteed ... ››› more
Do you know the difference between minimum investing and low-cost investing?
Well, most investors would usually say they're the same thing. But this is far from the truth.
Low-cost investing deals with the investments associated with investing your money, while minimum investing implies the least amount of money you can invest.
In fact, failure to understand this can actually lead to... ››› more
If you've been thinking of buying a new car, think again.
Buying a new car is generally a bad investment because it depreciates in value quickly and has high monthly costs.
Like most bad investments you make, the decision to buy a new car is ultimately driven by your emotions. You want to be the envy of your colleagues, friends and family pulling up in a spanking new vehicle.
Slick car... ››› more
How much cash should you put into your account to start investing?
Does it even matter?
The amount of money you start out with could be of crucial importance - and if you miss this you could end up losing money from winning shares.
But this doesn't mean you need thousands of rand to start investing though…
Let me explain...
What you start out with will determine your succe... ››› more
Financial advisers are a dime a dozen in South Africa. Walk into any investment firm and you'll find them, sitting behind their fancy desks in their tailor-made suites and large offices crunching numbers.
They come across as bold and confident and in some cases; their knowledge of the investment environment can be intimidating. But just because a financial adviser looks like he knows what he's... ››› more
There are so many things you need to consider when planning for your retirement.
Of course, there's the obvious retirement planning concerns, like how much you earn and how much debt you have but there are other factors that could leave you scrambling around trying desperately to build up your retirement savings.
To help you prepare for your retirement, I've found 20 of the most common ret... ››› more
Are you so focused on our day-to-day life that you totally forget to look after your health? If this sounds like you, you're at constant risk of contracting a serious lifestyle illness.
Statistics from the heart and Stroke Foundation of South Africa show:
• 130 heart attacks and 240 strokes occur daily in South Africa
• 10 people suffer a stroke and five people will have a heart attac... ››› more
Right now there's an investment you've probably forgotten about. I'm not talking about your equity portfolio, your government bonds or even your retirement annuity.
I'm talking about a specific investment that will either contribute greatly towards your retirement or leave you struggling to make ends meet when you stop working.
You might have forgotten about this investment but right now, i... ››› more
The cost of funerals in South Africa is quite expensive. As a result, when family members die, those left behind are often left with a serious financial burden. Funeral costs can reach tens of thousands of rands leaving the family member responsible for the burial no choice but to take out a loan or pay with a credit card.
Clearly, this isn't an ideal situation, especially for households with ... ››› more
“Francois: I read your article on using ‘buy limit orders' to buy shares at lower prices and decided to do it. But something seems to have gone horribly wrong. I tried buying R5,000 worth of shares with a limit price of 51c. But when I checked my account it only traded about R500 worth. My cost per share, after brokerage, is now 67c per share. What's going on???” - BM
The right tools, u... ››› more
You read all about the wonderful profit opportunities that are in the market. And I'm sure in your mind or on paper, you know exactly what shares you want to pile in for the year. But there's still one tiny little thing missing. It's the one thing that salesman, brokers and even your friends forget to tell you about. The four hidden costs of trading. And today, I'm going to break these costs down ... ››› more
You might think your pension fund is ticking over nicely, but there's still the over-riding fact that one in three people could be saving too little for their retirement.
Let's face it... Unless a miracle happens, a lot of people will have to make do with far less money than they thought come retirement day.
But that doesn't mean it has to ruin your plans and make your retirement a constant ... ››› more
“I work all night, I work all day, to pay the bills I have to pay... Ain't it sad. And still there never seems to be a single penny left for me... That's too bad”
You might recognise those lyrics. They're from Abba's 1976 mega-hit Money, money, money. And they've never been more true than they are today.
I'm sure you've cut back on your spending... But there are things you simply can't c... ››› more
Unit trusts are a great way to gain exposure to the stock market as a long-term investment.
But like the vast majority of investment options out there, unit trusts come with costs.
So what costs do you have to pay?
Let's take a closer look…
Weighing up the costs of investing in unit trusts
If you decide to invest in unit trusts, you need to look at the different fees a... ››› more
Let's face it, investing has always been something for the richest 2%.
The minimum for opening share trading accounts at many stockbrokers is R10,000. Then there's the rule I've always stuck by, don't invest less than R5,000 in a single share…
That's all because of minimum brokerage costs. Whether you buy R50 or R5,000 of shares your transaction cost will amount to around R100. So only onc... ››› more
Investing in shares comes down to making money from it.
But there are costs involved. And these costs will make a difference to how profitable your investments are.
So what are the different costs of investing?
Let's take a closer look…
You need to pay your stock broker
To buy and sell shares, you need to use the services of a stock broker. And of course, these don’t come fo... ››› more
If you're looking for a cost effective way of trading stocks, contracts for difference (CFDs) are worth a look at.
You trade the spot price. This means you enter and exit a trade at the price of the underlying share.
But, as with all forms of trading, there are costs to consider.
So what can you expect to pay? And does the amount you trade make a difference?
Read on to find out…
... ››› more
It's not surprising why so many people like investing in funds.
It removes the need to pick individual shares to invest in and you can easily contribute to grow your investment over the long-term.
The two most common types of funds in South Africa are exchange traded funds (ETFs) and unit trust funds.
So what are the differences between the two types of funds? And which one is cheaper to... ››› more
Disclaimer 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 on this website.
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 website.