Once you've sorted out a futures broker to trade through, you're ready to start trading single stock futures. After conducting some research, you've decided on your first trade. So you phone up your broker to put the trade on. Before you can go ahead with your trade, you need to understand the bid price and offer price. And what difference this makes if you're going long or going short. Let's take... ››› more
To become a consistent, successful trader you need to find a strategy that works for you and continually update it. And, of course, you need to employ good money management skills. A strategy that could prove profitable to you is using short-term moving averages. So how does this work? And what do you need to look out for? Let's take a closer look…
Using short-term simple moving averages
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Contracts for difference, or CFDs, are over the counter derivatives. They trade through a bank or company providing CFD trading rather than an exchange. By trading CFDs you agree to exchange the difference between the open price and the close price of the contract with the bank or company providing CFD trading. So why should you think about trading CFDs? Let's take a closer look…
Benefit #1: ... ››› more
Over the years, spread trading has become an increasingly popular way to trade. It provides investors an alternate way to make money than just buying and holding shares. You can use spread trading to complement your portfolio of long-term investments with some short-term positions. Yes, spread trading is risky. But with the risk you take on, there's a potential to make decent profits quickly. Ther... ››› more
Whatever your investment goals are, you're not going to achieve them overnight. And the chances are you'll scare yourself off the idea if you try to leap from nothing to millionaire in one rather large step. The best thing you can do to achieve any goal is to break it down into bite-sized pieces. And this is certainly the case for achieving your investment goals. So how can you achieve them? Read ... ››› more
A trading strategy is essential. And even more so if you're a short-term trader. Trading geared instruments is a risky business. Trading without a strategy just adds to the risk you're taking on. Before you even think about putting a trade on, you need to ensure you have a trading plan first. So what should you include in your trading plan? Read on to find out…
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Not everyone wants to be a long-term investor in shares. Some would rather try the fast paced world of trading. Whilst this high-risk game might not be everyone's cup of tea, if you want the chance to make fantastic returns in a short space of time, trading gives you that opportunity. Let's take a closer look at the trading instruments available to traders…
Why trading could be right for you
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The financial sector is one of the largest sectors in South African economy. It contributes 21.2% to the country`s GDP. And, the sector has certainly felt this year's challenges given its sensitivity to inflation, interest rates and the weak rand. But, these negative economic forces haven't deterred two banks from coming out with stunning numbers.
We saw Nedbank's (JSE: NED) earnings up 16% and... ››› more
"Hi Timon, I read an article by Marc Ashton who disagrees with your article ‘Five reasons you should start day-trading today'! What are your thoughts on these issues?"
This was a question asked by L.Y on the investorsclub.co.za.
I read the article by Marc Ashton, and that's the great thing about free speech…
Everyone is entitled to their opinion. In fact, his article was quite rea... ››› more
Options trading provides you with a great way to trade. And unlike a lot of instrument you can use to trade, some of the trading strategies with options trading come with relatively low risk. But before you can jump in, you need to ensure that you know all the terms for trading options. Once you get to grips with these, the options trading world is your oyster. To discover the terms you need to kn... ››› more
When you trade contracts for difference (CFDs), not only can you profit when the market is rising in value, you can also profit if the market is falling. You just have to decide whether to go long or short with your CFD trade. Read on to uncover how you can use CFDs to profit from a rising or falling market…
Just like other derivative products, such as futures and options, you can go long or s... ››› more
I'm always amazed when I speak to traders and they tell me how difficult the market is.
It's not because I don't believe the market can be tough to trade, but it's because when I ask them what they're doing in the market, they'll tell me they're sitting long of share XYZ or short of share ABC.
My point is, these traders are quick to complain when they lose money in the markets; but they forg... ››› more
There's been some interesting activity in the gold market of late. Despite the lack of tapering - and fundamentals screaming for a higher price - progress to date has been somewhat muted. Yesterday evening the price was $1,237. Read on to find out if there is a shortage in the supply of gold…
Goldman Sachs recently went out on a bit of limb predicting a fall in the gold price to $1,144 per oun... ››› more
Now you might think Eskom's new Medupi and Kusile power plants will put a stop to our blackouts. But I'm afraid the problem is bigger than a simple power shortage.
We're facing a total, systemic failure.
Just last week, Eskom made an emergency announcement stating that we can expect rolling blackouts.
But in fact, in 14 months, the entire power grid will finally collapse!
This situ... ››› more
“Iron ore rallying as cargoes to China reach record”
This was a headline on Bloomberg yesterday.
Now on your first look at this headline, you may think that now's a good time to buy into iron ore miners.
After all, if the industrial metal's price is rallying, then miners should make more profit right?
Well today I'm telling you, this rally in iron ore prices will be short lived. And ... ››› more
As a South African, you know better than any euro or dollar investor just how vital it is to defend yourself against the risk of a collapse in the value of your currency. As a smarter investor, you also know the importance of “anchoring” your portfolio with a 5% to 10% allocation to gold. South Africa's gold mining output's in sharp decline. But do you know just how serious the problems facing... ››› more
Power outages affected large parts of Johannesburg at the beginning of September. This was down to sabotage by City Power workers. But it looks like it could be a major issue across South Africa by 2015. An industry study says that come 2015, Eskom faces a massive shortfall of coal to fuel its power stations. Let's take a closer look at what's going on…
We all know what it’s like to experien... ››› more
We all love a good chocolate from time to time. Its sweet delectable taste… Its rich creamy texture…
What's not to like?
But lately, I've found a different reason to love chocolate.
You see, chocolate - or more accurately, its key ingredient - has the potential to make you a hefty profit.
That's because, right now there's a perfect storm about to send Cocoa prices through the roo... ››› more
Spread trading involves leverage. That means that you ‘borrow' money from your spread trading provider when you put on trades. Leverage magnifies your gains, but it also magnifies your losses. Let's take a closer look at how the margin works when you spread trade…
The leverage in spread trading makes it important to manage your risks, Cris Sholto Heaton explains in MoneyWeek. This is both fo... ››› more
Spread trading can be a very useful extra tool for investors. It allows you to take a position on a huge number of assets, including many that are otherwise difficult to invest in, such as commodities. Let's take a closer look at how spread trading works…
Spread trading lets you trade on prices falling (‘going short’) as well as rising (‘going long’), Cris Sholto Heaton explains in Mon... ››› more
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