When you first start trading forex, like most traders, you're likely to be thinking about how much money you can make.
In fact, the best thing you can do is think about protecting yourself against losing money. Do this and you have a better chance of being a successful trader.
So what are the most important aspects of risk management?
Read on to find out…
Risk management rule #1: ... ››› more
Whilst trading forex gives you the opportunity to make money from the movements of currencies, there's also the chance of making a loss.
When you trade forex, you're trading a geared instrument and this means your losses can quickly mount up.
This is why risk management is so crucial when you trade forex.
So how can you limit your downside risk?
Read on to find out…
Why stop lo... ››› more
When you're trading the stock market for short-term gains, you need to be smart about the risks you take on.
A successful trading strategy comes down to effectively managing your risks. There are three key things to bear in mind and use in your strategy.
Read on to find out what these are…
Trading strategy principle #1: Keep your losses small
Trading all comes down to making money... ››› more
Forex trading can be lucrative, but like all forms of trading, it's risky. You risk losing money.
To deal with this risk, you can use a number of different things to combat it. Whilst you cannot remove the risks you take on forex trading, you can do things to minimise the risks.
So what can you do to control your risks from trading forex?
Read on to find out…
Five risk management ... ››› more
There are two major benefits of risk management when you trade forex.
Firstly, risk management protects you from losing a large amount of money in one trade.
And secondly, risk management will make you more profitable in the long run.
One key aspect of risk management is position sizing. So how can you make this work for you?
Read on to find out…
Using position sizing as part o... ››› more
If you're new to trading, it's easy to let the excitement of making mouth-watering profits from your new venture stand in the way of dealing with vital aspects of your strategy.
But before you even contemplate putting a trade on, you must realise the importance of risk management and make it a major part of your strategy.
So why is risk management so important when you trade? And how can you... ››› more
There's a common belief in investing that the higher the risks you take on, the greater the potential reward may be.
Long-term performance of stocks and bonds provides evidence to back this up. Historically, stocks have outperformed bonds. This implies greater reward for investors taking on the higher risks of investing in stocks over bonds.
But it may not be as clear cut as this. When it co... ››› more
If you've decided to invest some of your cash offshore, it's important to weigh up the potential risks of countries you're looking at.
So how can you check?
Read on to find out…
Weighing up offshore investment destinations
When investing offshore, it’s important to consider country-specific risks.
FM Global, an international insurance company, has devised a tool to help you d... ››› more
Forex trading gives you the opportunity to make handsome profits from changes in the prices of currencies.
Whilst you can make good gains, if you don't put any thought into risk management, you can quickly lose money.
So why is risk management so important when you trade forex? And what sort of risk management strategies should you consider?
Read on to find out…
Risk management is... ››› more
Since the slump following the financial crisis, shares on the Johannesburg Stock Exchange have continued their overall upward trend.
But investing in the stock market is risky. There's always a chance the stock market could take a turn for the worse.
So what's the best way to prepare?
Read on to find out…
The battle between the stock market bulls and bears
There will always be ... ››› more
When you first begin trading contracts for difference (CFDs), you're likely to be very excited about the profitable journey that lies ahead.
But as soon as you have your first losing trade, this feeling evaporates.
All traders have losses. It comes with the territory. The key is managing your trades in an effective way so losing trades don't wipe you out.
So how can you do it?
Read on ... ››› more
Investing in bonds offers you a number of advantages.
If you hold higher risk investments like stocks, buying bonds lowers your overall investment risk.
If you're looking for a regular income from your investments, bonds tick this box too.
And if you want to invest your money for a specific period of time, bonds are perfect.
So if you want to invest in bonds, how do you do so?
There... ››› more
Unit trusts provide you with an easy way to invest in a number of different assets. You can use them to invest in different types of equities, money market funds and bonds.
If you're looking for a lower risk option to generate an income, unit trusts have the solution.
Let's take a closer look…
Investing in income funds
Income funds are unit trusts that focus on generating an incom... ››› more
Contracts for difference (CFDs), like other financial derivatives, are geared products.
So what is gearing? And what are the advantages and disadvantages of trading geared products?
Read on to find out…
Gearing explained
CFDs are geared products. This means you only put down a small proportion of the actual value you have exposure to.
You achieve gearing (or leverage) through t... ››› more
If you're saving up for a specific goal or don't need access to some of your cash for a while, what are your options when it comes to low-risk investments?
You could opt to put your cash in the bank in a fixed deposit account or you could buy RSA Retail Savings Bonds.
So which is the better option for you?
Read on to find out…
What are RSA Retail Savings Bonds?
RSA Retail Savin... ››› more
You may have heard the expression: You have to speculate to accumulate.
This expression goes hand in hand with trading. Trading involves speculating by putting on trades to accumulate by making a profit.
But with this comes high levels of risk. Taking risks fills many people with dread.
So how can overcome your fear of taking a risk?
Read on to find out…
Risk results in fear
... ››› more
Investing in bonds is a great way of lowering the overall risk of your portfolio.
By lending governments or corporations money, you receive fixed interest payments.
But bonds can seem complex. There's a host of new terms to understand. And the risk differs amongst different types of bonds.
Getting to grips with these details will help you find the best bond unit trusts to invest in that a... ››› more
Investing in bonds may not offer you the level of potential gains of investing in stocks, but they play an important role in your portfolio.
So what are bonds? Why should you invest in them? And how can you invest in bonds?
Read on to find out…
What are bonds?
Bonds are fixed-interest securities. When you buy bonds, you’re lending the issuer money. In return for this loan, you... ››› more
When you buy bonds, you lend the bond issuer money. In return for this ‘loan,' the bond issuer pays you interest until the bond matures.
There are two main types of bonds you can buy: Corporate bonds and government bonds.
So what's the difference between these types of bonds?
Read on to find out…
What are bonds?
Bonds are known as fixed-income securities. This is because for ... ››› more
Options trading is by far the most popular trading tool in the US. As a South African trader you can trade this popular instrument too.
The Johannesburg Stock Exchange's Derivative Market lists options on the single stock futures it lists.
So what exactly is an option? And how much risk do they come with?
Let's take a closer look…
What are options?
In South Africa, options are ... ››› more
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