There are plenty of trading myths out there which generally scare potential traders.
Here's one of them…
"Day-trading in the stock market is the most dangerous way to trade!”
Quite simply, day-trading is a style of trading where you'll take one or more positions within one trading day!
So you'll trade anywhere between the open and the close of the trading day.
Many novice trader... ››› more
Bollinger bands are great to use in a range bound market or a low volatility environment. By using other technical indicators such as the average directional index or moving averages, you can check this. Then it's onto putting your Bollinger bands to work. Read on to uncover how to use Bollinger bands in your trading strategy…
Once you’ve identified this range bound environment, you can use ... ››› more
The economic environment in Europe is a mess.
Growth is generally non-existent, unemployment is at record highs and many governments are struggling to stay afloat in an ocean of debt.
This doesn't sound like the best environment for business.
But…
World famous investor Warren Buffett has been buying European stocks this year.
Buffett’s value investing techniques have built him a ... ››› more
Every trader loses money at one stage or another.
Sometimes things happen in the markets that are outside of your control, and are impossible to predict.
However, although you can't control the outcome of every trade, by understanding why things go wrong you control how you deal with your inevitable losers to limit your risk and maximise your reward over the long-term.
Let me explain..... ››› more
Winter is certainly on the way. Waking up when it's still dark to a fresh chill in the air is certainly not my cup of tea! However on the other side of the world spring is just beginning. In the Northern Hemisphere a lot of people will be beginning to take their summer holidays - including many stock market participants…And it's because of this seasonality, that the story of “sell in May and ... ››› more
Whether you believe in global warming or not, is irrelevant. The fact of the matter is, many governments do... And that's what will shape the future of our world. You see, the European Union wants to get 20% of its energy from renewable sources by 2020 in an effort to cut down on pollution.
But how they'll achieve this is important. If they were to rely solely on solar and wind energy they would... ››› more
Getting ill is not only unnecessary but a pain in the proverbial throat. Don't you hate waking up in the morning for work, only to find that you have been hit with the dreaded flu? You've got to deal with nasal congestion, swollen glands aching muscles, headaches, lethargy and so on. Does this sound familiar to you?
Well heres the thing!
An average person gets sick around twice a... ››› more
Apple's new returns to shareholder scheme is looking to give $30 billion of cash back (through dividends and buy backs) per year from the time of the first dividend payment this year through to December 2015. On a $400 billion market cap that's a yield of 7.5% per year! That's nice if you are an income focused investor like many older investors are... But for the Apple investors of old - this not... ››› more
Local and international markets have taken a battering recently. South African resources are down 14% in the last month alone! I'm sure this market pullback has had some effect on your portfolio... I know it has on mine. Even some of my investor friends have become edgy, asking me if they should be selling out of their stocks.
But it’s times like this when I actually start licking my lip... ››› more
Whenever I speak to my father on my cell phone I always hear his voice booming, “Why are you calling me on your cell phone? Don't you know how expensive it is? Stop wasting money and phone me back when you get home!”
Although he's right, when you're out on the road and need to make a call, you've got no choice but to use your cell phone and tally up those hefty bills.
Well I've got news for ... ››› more
The gold price dropped from a high of $1,562 on Friday to a low of $1,350 by Tuesday this week.
Everyone's been shouting about this $212 drop in the gold price but no one really has a clue what's going on…
When speaking to one of my colleagues, Chris Mayer, in the USA on Monday about gold's 'impressive' crash over the weekend Chris told me:
"I never saw it coming. I am as surprised about it a... ››› more
When you think of Kenya, Mauritius or Mozambique I'm sure you think of beautiful beaches and clear blue seas. In fact just a few months ago I was in Mauritius enjoying the sun, sea and sand, and it really is a beautiful place. However, even more startling to me was the huge growth going on in such a small country. The taxi ride from the airport to my hotel revealed a huge array of booming busines... ››› more
Investing your money can be a formidable task.
The money you put in, and those good intentions you have along with it, can be thwarted by the simple lack of experience you have with the markets…
That's why many people decide to place their money with a fund manager. These managers spend most of their time analysing and making important decisions so that you don't have to.
But the proble... ››› more
When the rand declines, does it really affect you?
It's easy to think it has nothing to do with you, but in reality it has everything to do with your wallet.
Consider this….
For every 1 percentage-point drop in the rand, the cost of petrol goes up by as much as 10c per litre. So if the rand goes to R10/$ you could be paying as much as R1.16 more per litre of fuel, every time you fill... ››› more
Africa's official beer consumption is amongst the lowest in the world.
According to a recent report by Bernstein Research, Africans consumed nine liters of beer per person per year in 2011.
This is significantly lower than the developed nations of North America and Western Europe where consumption is near the 70 litre mark!
However these facts don't fully reflect the beer market in Afric... ››› more
Faith, luck and other super-natural phenomenon! So many people depend on these things when trading.
And the fact is its human nature. When you don't know what's going on or you're unsure about something, you search for answers whether they're true or false.
I'm sure there's times when your imagination has run away with you. Times when you’ve seen things which aren’t there. But today I wa... ››› more