How you can diversify yourself to safety with the ‘Rule of Four'
What do you do with your money in a crisis? Do you sell your share portfolio? Do you stick everything in a bank account, in property or in gold?
That's the question that popped up around a campfire I had going with friends over the weekend.
Considering South Africa's junk status, state capture and political unrest that'... ››› more
Ben started to dabble in the Forex market.
He's just bought the Australian dollar versus the American dollar for the third time.
And just pocketed R10,000 from his R5,000 portfolio.
He's on a winning streak.
Ben feels that trading is the quickest key to his financial freedom.
Aaah, the jubilation! The smell of sea sand, while he hears the crashing of the waves.
Retirement here we... ››› more
• Should I close the trade for a R1,836 profit?
• Is it difficult to trade in Crypto-currencies?
• The best stock broker to trade penny shares
Q. Hi Timon, on Tuesday I bought Sibanye Gold for R826. So far, it has made R1,836 profit. Should I close the trade or let it run more? C
Answer by Timon Rossolimos, Red Hot Storm Trader
Asking me this question is ver... ››› more
Investing in penny stocks can be an extremely profitable venture, but with that comes higher risks.
This means it's vital you handle your portfolio and risks to deal with this.
So how can you go about doing this?
Read on to find out…
How to manage your penny stocks portfolio
Of the portion of your portfolio you decide to invest in penny stocks, you should aim to invest in be... ››› more
I call it the “offshore investment conundrum”. Investors have no clue where to invest or what to invest in, leaving their cash exposed to unpredictable economic and political events. Investing in just any old offshore product will cost you time and more importantly, money.
While I admire the ambition of investors to identify opportunities elsewhere, the fact of the matter is, over half of ... ››› more
Imagine a country with massive amounts of natural resources.
The richest economy in its region.
However, there are signs of trouble, including rising inequality and societal unrest.
To combat this the government is turning to populism by taxing the rich, confiscating assets and dramatically increasing the redistribution of funds to the poor.
This is not South Africa in 2017 I am t... ››› 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
Do you know that one of the strongest and largest banks in Europe is in big trouble?
Yes, Deutsche Bank struggles go way back to last year, when the company reported a loss of €6.8 billion.
And just recently, news came out that the bank faces a $14bn charge over mis-selling mortgage securities in the US.
But if you don't own Deutsche Bank's shares, why should you care?
Well, South Af... ››› more
Timon Rossolimos answers all your most important questions on trading for the week. This week's mailbag includes questions on Forex, stop losses, candlesticks, CFD contracts, Options and more.
Enjoy today's Q and A session…
To place a stop loss or not to place a stop loss?
“Is it necessary to place a stop loss if I watch my account closely from 9 ‘till 5?”
Ans... ››› more
Most types of risks for investors are almost impossible control.
Take politics for example - You have no control over what the Government says or does that could affect the markets.
But there's one type of risk an investor can control - The risk of paying too much for a stock.
Let me explain…
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This ... ››› more
Can Forex trading really make money? Is it really possible to make more money from trading than you'll lose? What are the risks you'll have to take on in order to succeed as a Forex Trader? These are the hard questions Timon Rossolimos answers in this five minute Forex Lesson
If you missed the begining of the Five Minute Forex mini course, it's not too late to catch up - register here ... ››› 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
Here's a question I got from Tony last week:
“I am new to Trading and having bought your Red Hot Storm Trader Service I am not sure what my loss would be if a trade went sour - I use your example below:
If you buy 10 Sasol shares at R450 per share and at a gearing of 10 times, you'd only have to pay R4,500 (R450 X 10).
So essentially, you're buying 100 CFDs on Sasol.
You'll have an e... ››› more
I receive a lot of e-mails with trading questions, and lately, I've noticed a couple of themes. It seems that many new traders have questions about stop losses, and even the more experienced stock watcher wants to improve his risk mitigation strategy…
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What would an extra R10,000 – R25,000 – R100,000 do for you?
Discover... ››› more
Last week a property investors told me that: “Property in SA is too big a risk. New laws coming out soon will limit property ownership to two properties and there will be no foreign ownership allowed.”
Is this true? Should you up and sell your property right now, or is there hope left for the South African property sector?
The truth about new property laws – it’s not as bad as yo... ››› more
The other day, while making my morning coffee, a work colleague asked me about an opportunity to earn an 11.5% return on a fixed-term bond investment.
And she wasn't talking about RSA Government Retail Bonds. She was talking about investing in a Participation Bond Fund, specifically the FedGroup Participation Bond Fund.
When you invest in a Participation Bond Fund, money is pooled with oth... ››› more
Penny shares are the black sheep of the investment market. Most investors ignore these shares because they simply don't know how to deal with them.
Penny shares are volatile - They'll be up one day and down the next. Their share prices tend to swing around violently leaving investors that are unprepared for this activity nervous and afraid of what the share price will do next.
But there ar... ››› more
Every week I chat to my cousin in Cape Town. We usually start off speaking about family politics and end up debating money and investing.
Now, since he's been running a successful transport company in the Western Cape, he's been starting to invest a lot more of his cash.
Usually, he makes relatively solid investment decisions, but this week, he made a classic investment blunder.
He dec... ››› more
Two weeks ago, I attended a business conference at Château de Courtomer in France.
From 8:00 am until 4:30, I attended meeting after meeting in different rooms in the castle.
It was productive for business and it was a wonderful opportunity for Trading Tips as I now have new and exciting ventures I'll be working on for you.
Unfortunately, during this trip. I was hit by the biggest hidden... ››› more
Every week I meet with the FSPInvest team. We usually discuss investment strategies, economic situations and the best investment opportunities on the market today.
Well, this week, things went a little a differently. I realised that many investors are turning to Forex trading as away to make money from the markets. But since this is such challenging investment solution, I decided to find out m... ››› more
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