The rand has collapsed over the last two weeks. It moved from below R13,90/$ to worse than R15,30/$. That's more than 10% weaker in a fortnight. Obviously, many of you are worried you've lost your chance to get money out of SA at a reasonable exchange rate.
The question on everyone's mind: Should you get out now or wait for a better level?
The only way to answer this question is to look f... ››› more
The ongoing trade war between the US and China escalated last week when President Trump said they would initiate another 10% tariff hike on Chinese imports worth $300 billion effective 1 September 2019.
Since then, we have seen a huge drop - over 5% on the S&P500, Dow Jones, Yuan currency and even the JSE.
Investors are becoming really worried about global stability and it's driving them ... ››› more
We are already in July 2019 and in the last six months, we've seen the SP500 index rise 17% for the first time since 1997.
With the truce agreement between the US and China that took place at the G20 summit, the rumours about the FED cutting interest rates and the index breaking above the psychological 3,000 level - It looks like we are in for a very profitable ride with the SP500.
But, ... ››› more
If you're interested in making money in the US markets, I have an amazing opportunity for you today.
With the G20 coming to an end on a high note, with the US adding 100s of thousands of more jobs and with the Dow Jones hitting all-time highs, I believe this is just the start of a long run up.
In today's article, I'm going to highlight why the Dow Jones is set to fly over 16.69% in the nex... ››› more
Bungee jumping is a terrifying experience.
It requires you to risk your life (literally) on the strength of a piece of rubberised string.
Now the statistics are very clear: Bungee jumping is safe.
But, when you tip toe to the edge of Bloukrans bridge, look over into the abyss and push off into blue sky with nothing but an elastic around your ankles… well you get the picture.
Fina... ››› more
Q. "I received a trade from PickPocket Trader last week to short the rand using CFDs. Could you tell me a formula I can use to know how many CFDs I must sell, in a way that I don't lose more than 2% on my R35,000 portfolio?"
A. The CFD calculation for Forex currency pairs is a little different to the calculation you need for buying stock CFDs.
Here's a formula you can use for currency CFD... ››› more
President Trump's willingness to get around the negotiating table has sparked a risk on rally, with safe havens like Gold, Yen and the Swiss Franc pulling back.
President Trump said he would hold back on new tariffs and China would buy more farm products. He also indicated the US Commerce Department could decide if Huawei should be removed off the list of banned firms and can do so without go... ››› more
The last time gold was at $1,400+ was back in August 2013.
But on Tuesday 25 June 2019 it hit a high of $1,436 to an ounce.
Currently the gold price has pulled back a bit from this sharp rally and sits at $1,408.
But here’s the thing – on 28 May gold sold for $1,276 an ounce. So the shiny metal is up 10.3% since then.
What’s behind this ... ››› more
Q. "I would like to know if it's wise to start trading with capital of R10,000? I am a beginner and have never traded before?"
A. I always recommend a starting portfolio value of at least R5,000, when you start to trade.
Not only will you be able to grow your account larger and at a faster rate, but also because of these four main reasons.
Reason #1: More funds mean more trades... ››› more
On 6 May 2019, I sent a gold prediction article where I mentioned that when the gold price hits the popular 200MA line, buyers go crazy, which they did.
And since then, the gold price has pierced right through the predicted target within just one month.
Take a look at the before and after chart to see what I mean.
It’s also great to know that a few of our members mana... ››› more
Warren Buffett has many great investment quotes, but perhaps my favourite is “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1”. This has never been more applicable than now. The world is about to become a far more uncertain place for investors as a series of political and economic events threaten to derail the global economy.
Number one on the list of threats is the US-Ch... ››› more
The US/China trade war has continued to escalate as President Trump tries to lock in a victory ahead of next year's presidential elections.
Huawei, the Chinese smartphone maker, is the most recent target of his attacks. The company uses Google's Android operating system for its phones and due to US sanctions, it is likely that Google will be prevented from doing business with the company.
... ››› more
Investors have been banking profits and positioning their portfolios for an escalation in the “Trade Wars”. Panic and fear haven't gripped the market gauging by the increase in the Volatility Index (VIX) over the past few days but that could all change with further tit-for-tat tariff increases.
Investors could generate significant returns waiting for the VIX to reach 25 before buying into ... ››› more
Q. “I want to understand trading in a simple way, as I don't understand much about trading. Please can you answer the following questions.
1. What does an entry level mean?
2. What is a stop loss level?
3. What is a take profit level?
4. How do you cancel a trade that hasn't been taken?
5. How do I confirm that I have exited a trade?
I would appreciate your help Timon.
... ››› more
Early in February this year, I sent out a prediction on the Brent crude oil price and why I expected it to hit $76.60.
Right now, the oil price is on par with the prediction as, last week, it rose above the $70 mark.
But something has changed…
In fact, I expect the Brent Crude price to rise even higher than I ever imagined. This is all thanks to Opec, five countries and a promising c... ››› more
Q. "Hi Timon, thank you for showing me what to do when I get an SMS from you. I took my first trade on Thursday and I must say, it's much easier than I thought. My question to you is, when my take profit level hits, how do I make sure I'm out of my trade?"
A. When either your stop loss or your take profit level hits, there are two ways to ensure you are out of your trade.
... ››› more
Q. “I have some Rebosis shares. The price has recently crashed from over R10 a share to around R1.62 at today's price. In your opinion is it worth buying at this level to try and average down, or is it better to sell and take the loss.”
A. This is a bitter pill to swallow but it must be said with your trading.
I personally exit any trades that are moving in the wrong dir... ››› more
Let me ask you a serious question…
How many of you believe you have enough money to last your retirement?
Well when you consider that over 50% of South Africans aren't confident they will be able to draw an income in retirement, I'm going to assume not many of you.
You see, a standard retirement annuity is simply not enough to generate the income you need, for the retirement you want... ››› more
“What is the difference between “Red Hot Storm Trader”, “PickPocket Trader” and “The Winning Streak”?
Majority of our FSPInvest.co.za members have no idea about the differences between our three exclusive trader services.
Today, I'm going to discuss these trader services through this week's Q&A, in one simple table.
By the end, you'll know exactly what they are all about ... ››› more
Last week, I explained the power of income investing.
And how it can boost the overall performance of your portfolio…even in the worst of times.
I also revealed (in short) some of the best ways to start generating an income for your portfolio.
Today I'd like to delve deeper into one of those income investments.
The reason why, is because they offer more income than a normal share... ››› more
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