Just how a money-market account pays you interest…
And just how certain shares pay you dividends…
Cryptos can generate investors a passive income too!
It's not known as a “crypto dividend” or “crypto interest”…
Prediction: These two digital currencies will lead the crypto resurgence
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Just in: The South African Reserve Bank just lowered interest rates by another 1%, the second time in a month.
This puts the South African repo rate at a historic low!
We can write essays about what the lower interest rate means for business and consumers. But in short - lowering interest rates historically has meant one thing for gold. Its price goes up!
And as you can see in the c... ››› more
Q. “Hi Timon, I see when it comes to Red Hot Storm Trader, you do not trade using the 5 minute time frame. Is there a particular reason why you don't and have you ever thought about trying it out? Thank you in advance for your usual support.”
A. To answer bluntly…
No, I don’t trade it at all…
Believe it or not, I used to trade the 5 minute time frame about 10 y... ››› more
The average investor sells his winners and holds his losers believing they will turn around!
This phenomenon even has a name
It's called the disposition effect.
And they even conducted a study to prove it…
In 1998, two US Finance Professors Brad Barber and Terrance O'Dean conducted a study called The Behaviour of Individual Investors.
They analysed the trading ... ››› more
Q. “Hi Timon, I've been using MetaTrader 4 for the last month, and I still have no idea how to place an entry. Before I would just type the price I wanted into my other platform and now with MT4 I have to choose between 4 different entry orders. Could you please explain when to use each one so I know for the future?”
A. This was a question I had when I changed platforms as well… And I be... ››› more
Ever heard of the Martingale Staking System'?
It is a simple betting system that originated in 18th century France.
It required the gambler to double their bet after every loss so the first win would recover all previous losses and end up with a profit equal to the original stake.
The theory suggests that if you had infinite time and wealth, the probability of eventually winning become... ››› more
Q. “I'm looking to start trading this year, but I want to find the right broker first. What questions should I ask a broker before I trade with them?”
A. I have 10 important questions you need to ask any broker before you decide to trade with them.
Q1. What variety of local and international trading markets do you offer?
Q2. What trading derivatives... ››› more
What stops a lot of beginners placing their first bet is the simple fact they don't understand the betting platform.
Fear not, as I have three simple to follow steps that will allow you to place your first winning bet.
Read on to discover how you could start earning a second income, watching your favourite sporting events.
Tradi... ››› 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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A week of heightened protests has ended and the ANC Cadre are holding the fort, for now. Their confidence masks the growing dissension from all sides, including members of its own party, eventually pressure will come to bear.
Fitch followed S&P in downgrading SA, but again the reaction was relatively muted. Clearly the market had been preparing for this eventuality. Of more concern is that som... ››› more
Last year in MoneyMorning, I wrote about “How unicorns” are the next “Tulip Bubble crisis.”
“Unicorns” are the name given by Silicon Valley to private start-up tech companies that have valuations of $1 billion or more. They're usually categorised as innovative, high growth companies.
But as I explained last year, many institutional investors pile cash into “... ››› more
Put yourself in this situation…
You have R20,000 to invest. You decide to buy a stable growth company and an undervalued share with explosive potential.
In six months' time, the stable growth company is up 50%, while your bargain buy is down 20%.
Now a 50% return in 6 months' from just one stock sounds incredible - That's R5,000 in your pocket for doing nothing. You decide you don't wan... ››› more
When you think of Europe's fastest growing economies, who comes to mind?
Switzerland?, Germany?, maybe Netherlands?
No it's none of them.
The fastest growing economies in Europe consist of countries you don't hear much about in the news. I'm talking about Malta, Luxembourg, Romania and Poland.
These countries' economies are expected to grow more than double the Eurozone's in 2016 and b... ››› more
New traders think that when I talk about risking risk 2% of their portfolio, it means investing 2% of what their portfolio is worth.
But that's not what I mean.
Let's say you have R10,000, and you only want to risk 2% or R200 of that amount to trade CFDs.
Here's how much you'll need to invest in your CFD trade…
First some investing/trading 101 basics
Step #1: Know how much you ... ››› more
Q: "What buy instruction do I give to the broker? This is the first time I'm taking a trade I don't want to confuse the broker or myself" - W
A: I remember the first time I wanted to buy a share on the JSE in 2003, many years ago. The problem was…
I had no clue what to do or what to say to my broker.
Well, if you're a first time trader and you're not sure what to say to your broker, the... ››› more
Over the weekend I was speaking to a friend of mine. He just moved into a new area after switching jobs. While he's checking out the property in the area he's renting a property.
One of the issues he faced was a rental deposit - and this actually affected which property he chose to rent initially.
You see, because of tenants not paying rent, or damaging property many landlords have been fo... ››› more
If you think that you're too broke to start investing your money, then you've been misinformed. It is possible to start growing your wealth with as little as R500 ever single month.
Despite what most people think, you don't have to have millions in the bank to invest your money. There are exciting new platforms that you can use to invest with as little as R100.
Of course, R100 gives you ve... ››› more
According to Stats SA 36,300 new houses was built in South Africa during 2015.
This has been part of a steady recovery since the 2008 crash.
But before you go out and buy the first best rental property you see first heed my warning…
You need to bring the interest rate risk into your equation
Looking at the vast bulk of property prices today it’s clear to me buyers simply aren’t re... ››› more
When you retire, you want to be in a financially secure position.
This means taking the time now to plan and ensure that you stick to specific retirement planning goals so you achieve this end goal.
Read on to find out more…
What you need to do before you hit retirement
You need to take steps now to ensure that retirement isn’t a time when you’re worrying about money. To do th... ››› more
For the July issue of the South African Investor, I took a deeper look into the JSE's Kudu Horn.
If you don't know what that is, I'll give you a brief update. It's simple: Every time there's a new listing on the JSE, the Kudu Horn is blown.
There have been over 80 listings on the JSE over the past 10 years. And while some Initial Public Offerings (IPOS) have helped investors make a fortune... ››› more
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