You've heard the term ‘Buy when there's blood on the streets'.
This is contrarian investing at its hear. But it's been proven true time and again.
In fact, if you'd simply bought a simple ETF like Satrix 40 following the 2008 financial crisis, you'd have made around 70%.
Investing in individual shares following the same crisis would've made you 200%, 300% and in many cases, 600% or m... ››› more
The biggest fear you'll experience when trading is the fear of losing money:
· What if your trade goes against you?
· What if you pick the wrong time to enter a trade?
· What if you take your profits too early? The list is endless.
One way to combat fear is to follow a solid trading strategy. A good strategy takes into account risk and reward. As long as you stick with your strategy... ››› more
Emotions get a bad name for interfering with our investing decisions.
They can lead you to make mistakes. When stock market volatility hits, fear can lead you to sell prematurely. When a position is doing well, greed can lead to you take on higher risks.
So are fear and greed always a bad thing? And are there any other emotions that can do more damage?
Let's take a closer look…
W... ››› more
When money is at stake, it's likely to get your nerves jangling.
Think about when you're about to put a trade on. All of a sudden your head is full of what ifs, second guessing your decision.
What if the market goes against you as soon as you enter a trade?
This fear is a natural reaction to risking money.
So how can you overcome your fears when trading?
Read on to find out…
... ››› more
The stock market adage, cut your losers and let your winners run, is a classic example of a saying that makes perfect sense. But it's a completely different matter putting it into practice.
Trying to ignore the interference from your emotions can lead you to do the opposite. That is, cut your winners and let your losers run.
So how can you win the battle over your emotions and let your winne... ››› more
When you begin trading, it's very exciting. But it's only once you start to risk your cash on the market that your emotions really kick in.
Unfortunately no amount of trading on a demo account can replicate the emotions you feel when you put your cash on the line.
The major culprits that interfere with trading are fear and greed.
So what do you need to do to combat these emotions?
Read... ››› more
There are a number of factors that have a bearing on your success as a single stock futures trader.
The psychology of a trader has a big effect. Let your emotions interfere with your trading and chances are you're going to lose money.
And as single stock futures are geared financial instruments, mistakes can cost you dearly.
So let's take a look at the two main emotions that can have a de... ››› more
Any decision you make when it comes to your investments should follow a clear plan. Unfortunately the vast majority of investors make investment decisions without a plan. They just do it, with no or little methodology behind their decision. But if you can apply a clear plan to your investments and stick to it, you're in a far better position to profit. Let's take a look at how to achieve this…
... ››› more
As an investor, you may think that fear and greed are your biggest enemies when you invest. But it's not the case. There are two other emotions which are far worse. They can result in you making the worst investment decisions. So what are these emotions you need to keep at bay? And what can you do to conquer them? Read on to uncover these investment gremlins…
**********************************... ››› 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
When a lot of people trade, they're looking for a handful of big winners that could leave them laughing all the way to the bank. But the truth of the matter is most traders find it hard to fight their inner fear and greed demons. By listening to these two emotions, you're going to lose money. If you can ignore these two factors, you're well on your way to becoming a more successful trader. Read on... ››› more
You must be really eager to get to the nuts and bolts of buying and selling shares - but it's important you first familiarise yourself with the basic concepts before you do.
A share is your chance to own a piece of the ‘big time’!
But what is a share?
A share is a portion of a company. You can buy and sell shares on a stock exchange, or by other agreement.
Each sh... ››› more
Last week, Professor Eugene Fama co-won the Nobel Prize for economics for his Efficient Market Hypothesis (EMH). This theory shows that the market is efficient and digests all information practically instantaneously. And it shows that it is virtually impossible to beat the market over time. But investing greats like Warren Buffett have proved that there is money to be made. Read on to find out why... ››› more
To be a successful forex trader, you must be unemotional. You can't let the excitement of trading get to you. Read on to find out why fear, greed and pride will get in the way of you becoming a profitable trader…
If you’ve ever played poker, you’ll know the high of going ‘all in’. Your heart is racing like there’s no tomorrow, and you’re hoping and praying the cards will go your wa... ››› more
We're all too familiar with the impact of our emotions on our investing. It leads to trouble and, ultimately, losses. Read on to find out more about two factors that influence your investing…
There are a lot of different factors at work when you invest. Trying not to let your emotions kick in is a major one.
Consider these factors and the impact they have on your investing, as Gareth Stokes... ››› more
To cut your losers and let your winners run is one of the most difficult pieces of advice to follow. If you could follow it to the word, you'd be rolling in the profits. Read on to uncover what you can learn from this stock market phrase…
It’s hard to follow the advice in ‘cut your losers, let your winners run’.
And that’s because the advice relates mainly to investment psychology. ... ››› more
Fear is a strong market mover. It ranks second to greed on the list of investment sins. But don't let fear interfere with your investment decisions. Read on to find out why…
If you can’t fight off fear, you could lose a lot of money.
Three investment fears to avoid at all costs
Whatever you do, don’t let fear drive your investment decisions.
Here are the most common investment fea... ››› more
The number of new vehicles bought in SA last month jumped as fears intensify over price increases. It's thought the weaker rand could be the driving factor. Read on to find out more…
Earlier today, the National Association of Automobile Manufacturers released some good news.
“New vehicle sales rose 7.5% year on year in July,” reports BDLive. This is a marked increase from June, which sa... ››› more
Today marks the 18th day in hospital for ailing former statesman, Nelson Mandela. The longer he stays in hospital, the more fears about whether he'll recover grow. It's this fact that's making investors nervous about the effect his death could have on South Africa. So it comes as no surprise that Planning Minister Trevor Manuel has issued a statement to address fears of a post-Madiba South African... ››› more
What a rough start to the week. Bad news emulating from China about its credit squeeze and the ‘old' news about the Fed plans to stop its stimulus package have unsettled the markets. Investors continue to take their money from emerging markets and run. It's not looking good…
Global markets continue to try to come to terms with the US Federal Reserve’s decision last Wednesday. The Fed plans... ››› 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.