When you invest in a share, there's always certain risks involved….
Competition, new regulations, the economy, currency…just to name a few.
The problem is, it can be hard for investors to quantify all these potential risks.
Rather than develop a complex, but flawed, analysis of risk... it's more helpful for an investor to think of "risk" in a simpler form…
... ››› more
Normally at a company's end year function, they make a reservation at a restaurant and have drinks and dinner.
Not here at FSP, which is the company I work at.
The team decided to go to Sky Bar at Pineslopes in Fourways.
You can choose between a bunch of activities to do there.
Abseiling, Rock Climbing, Bungee Jumping or you can just chill, drink and eat at the Sky Bar.
At first I s... ››› 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
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
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
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
It's painful to watch your money disintegrate because of government policies that you have no control over. However, despite the political situation, the main reasons investors lose money in shares is that they tend to buy and sell at exactly the wrong time.
And they believe risk taking’s rewarded in the stock market.
After all, that’s the advice brokers pass along to clients. One of ... ››› more
The risks involved in maintaining a successful business are real. If you don't protect yourself from unexpected and destructive events, you could see all your hard work crumble.
It's important to secure the future of your business by making shrewd and informed short-term insurance decisions.
Here are five insurance secrets you can use to protect your business in the face of a deteriorating... ››› more
Over the last three decades, the small-cap sector (which houses ‘penny shares') outperformed nearly every other market by a landslide.
In fact, if you had spread R10,000 across the entire small-cap universe in 1996, you would have turned it into R171,021.60 by 2015.
And since 1929, the average annual return on small-cap stocks has been 11.9%, according to Morningstar Ibbotson data on inter... ››› more
Investing in penny stocks can be a great way to make a killing on the stock market. But investing in the smallest companies on the stock market doesn't come without risks.
So what sort of risks do you face investing in penny stocks?
Read on to find out…
The risks of investing in penny stocks
There are a few different risks that you need to be aware of before you embark... ››› more
Trading the foreign exchange market all comes down to speculating on the moves of currencies.
By trading a currency pair, you hope that one currency will rise in value and the other currency will fall in value.
As the market tends to follow long-term trends, many traders use technical analysis to find trades to their gain. But it comes with risks.
So what are the risks of trading forex?
... ››› more
Investing in penny stocks can be extremely profitable. But with the possibility of great gains comes risk.
To invest in penny stocks you have to comfortable with the risks you take on. If you want the potential of making money on these shares, you have to accept that you may lose money along the way.
Let's take a closer look at the risk side of penny stocks and how to manage it…
The ... ››› more
The Bank of America Merrill Lynch recently published new data that ranks countries according to how risky they are.
The ranking comes from how likely it is that a country will default on its sovereign debt.
South Africa ranks just outside the top ten.
Let's take a closer look at what this means for SA…
The risk of defaulting on sovereign debt
Bank of America Merrill Lynch’s ... ››› more
When you put money to work for your retirement, you face investment risk. This investment risk will depend on what assets you invest in.
It's easy to ignore risk and focus on how much your investments for retirement could return.
For example, if you invest in a unit trusts that's shown good performance over the years, there's no guarantee this will continue.
So what risks face your retire... ››› 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
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…
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
Before you start investing, you should take time to write down your investment goals. These should range from short-term to long-term.
Then you need to decide what financial instruments you're going to use to take you there. These range from cash to geared instruments.
So what sort of risks do different financial instruments come with? And what can you expect in terms of returns?
Read on ... ››› more
IPO stands for initial public offering. This is the first day a company floats on the stock market, in other words, it's the day it lists.
So should you buy shares in an IPO?
Let's take a closer look…
A company’s first day on the stock market
On their first day on the stock market, IPOs can trade at a premium to their offer price. Sometimes these premiums are huge.
As much as... ››› 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.