To trade forex, one of the things you need to get to grips with is the margin. You can't trade without it. So what exactly is the margin? And how important is the margin to your trading? Let's take a closer look at the role the margin plays when you trade forex…
What is the margin?
To put on a forex trade, you need to put down a margin to trade. The margin is the initial amount of money y... ››› more
Investing is all about taking on certain levels of risk in the hope of reward. With investing, risk all comes down to the volatility experienced in the assets you put money into, for example, a share. The big question when it comes down to your portfolio is how much risk should you take on? Let's take a closer look at how to answer this…
How much risk is right for you?
The amount of risk ... ››› more
In an ideal world, you could make a great return on your money with no worries attached. Unfortunately, this isn't the case. With investments, you have to accept the relationship between risk and return. The more risk you take on, the higher the potential gain is. Let's take a closer look at risk when you invest…
What is risk?
When we talk risk with investments, it all boils down to volatil... ››› more
When you trade contracts for difference (CFDs), or any other financial product, it's crucial you manage your losses. No-one enters a trade thinking it's going to turn against them, but it's something you have to be prepared for. Otherwise you're not going to survive very long as a trader. So what can you do to minimise your losses? You can opt for a stop loss or a trailing stop loss. Let's take a ... ››› more
If you want to invest in a resources stock there are a few things you should check out before you jump in. Investing in a resources stock is different to investing in a physical resources themselves. And because of this, they can perform differently. Let's take a closer look at what you should weigh up…
Resources stocks can be risky
Mining and resources stocks can be risky. They’re in... ››› more
When trading a geared product, like spread trading, you must manage your risk. If you choose not to, chances are you're not going to last very long in the trading world. It's important that you think about and apply risk management strategies to your trading. So what could you include in your risk management strategy? Let's take a closer look…
Risk management is vital
Stop losses are of cour... ››› more
Investing in the stock market comes with a host of potential benefits. But it also comes with its disadvantages. So before you risk a cent on any share, you need to ask yourself some questions first. And apply some rules before you start. Let's take a closer look…
The potential risks of investing in the stock market
Investing in the stock market offers you the chance to make inflation beatin... ››› more
You can make big profits when a trend changes from up to down and vice versa. But it's a risky business trying to time these changes. Get your timing wrong and you can lose money. So what's the best trading strategy when it comes to trying to profit from these tops and bottoms? Read on to uncover what you should do…
Do you want to earn an... ››› more
After last week's decent performance, the rand is under pressure once again. This follows the rand hitting three month highs last week. As tensions grow in the Ukraine, investors are turning away from riskier assets like the rand. Let's take a closer look at why the rand is struggling again…
URGENT: Next trade imminent!
On 24th March 2... ››› more
When investors search for shares to invest in, one popular ratio to look at is a company's price earnings (PE) ratio. The PE ratio can be a good indicator of whether a share is cheap or expensive. But the PE ratio doesn't reveal whether a share is good value. The PE ratio has its flaws. Let's take a closer look at some of these…
The earnings side of the PE ratio
To calculate the PE ratio, y... ››› more
If you invest in penny shares, there's a chance you'll let the dream of making massive gains drive your decisions. And in the process you'll throw any type of risk management out of the window. That's one way to ensure you don't make any decent money investing in penny shares. But there is a strategy that can limit your risk. Read on to find out what it's all about…
Don’t invest in penny sha... ››› more
Unit trusts are a great way to invest. You can make money on your investment. And you gain instant diversification, something that investing in individual shares will take you a lot of time and money to replicate. But, of course, there are risks. But what are they? Let's take a closer look at the main risks of putting your money into unit trusts… Investing in unit trusts carries risk
When you... ››› more
"Hi Timon, How many contracts should I buy if I have a portfolio of R20,000, when trading the ALMI?" - L.Y
If you don't know the answer to this question, then don't trade another ALMI until you've read this!
There are many different ways to calculate how many contracts you should buy or sell with any one ALMI trade.
But, let me explain to you what I find the easiest…
H... ››› more
Bonds are a way for governments or companies to borrow money. By investing in bonds, the government or company will pay you interest for holding the bond and at the end of the bond's term, pay you the capital amount. Let's take a closer look at how corporate bonds work and how you can invest in them…
What are corporate bonds and why should you invest in them?
Bonds issued by governments a... ››› more
On the 2nd March 2014, I attended one of the most exclusive events of the year, the Global Success Summit.
This event was graced with renowned speakers such as, Steve Wozniak (co-founder of Apple), Jordan Belfort (the notorious Wolf of Wall Street) and Francois Pienaar to name a few
But one of the speakers grabbed my attention - And spoke my language.
The language of successful trading... ››› more
Most retirement experts make retiring well seem easy: Pick the amount you want to live on when you say goodbye to the corporate world and save enough money to get there. But here's the thing: There are five common retirement risks your retirement strategy has to take into account if you want to make sure your future really is golden…
Four retirement risks your retirement strategy MUST cover
... ››› more
This free tool will help you calculate how many ALMI (Mini-ALSI40) contracts you should trade.
This will help you keep strict money management rules using the percentage rule.
Here it is...
Your FREE ALMI Risk Calculator
So, click here NOW to use your free ALMI risk calculator tool...
Always keep in mind,
"Wisdom Yields Wealth"... ››› more
If you're looking for an investment strategy to maximise on the potential profits of an investment, but without having to pay full whack for it, what can you do? Well you could look for investments with ‘warts'. By honing in on investments with ‘warts' that have a high probability of disappearing, you could get in at the right price. And make handsome profits in the process. Let's take a close... ››› more
If you want to try trading contracts for difference (CFD), you need to find out if it's for you or not. Trading CFDs is risky. It takes up time. And you need to be very disciplined to increase your chances of success. So is CFD trading for you? Read on to discover if trading CFDs is for you…
What is a CFD?
Contracts for difference are over the counter (OTC) derivative products, the team at ... ››› more
The rand is on shaky ground as investors around the world are on edge over tension between Ukraine and Russia. This is putting pressure on emerging markets and their currencies. Last week, the rand put in its best performance for weeks. And shrugged off news about the larger than forecast trade account deficit. Let's take a closer look at what's going on with the local currency…
The rand weake... ››› 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.