Did you know…
The US economy is in the deepest recession in living memory.
Also, the US Federal rate has dropped from 2.25%, taking the borrowing interest rate to 0.25%.
And yet, in the last quarter, the Dow Jones and the S&P 500 have baffled the world having the best quarterly rallies since 1998.
In the last three months, each stock market has surged more than 20%.
Now I don... ››› more
Q. “I have been a member of Red Hot Storm Trader for about three years now and I'm a big follower of Trading Tips. During that time, I've managed to create my own trading strategy that I've been testing for the last seven months. In that period, I've banked 23 winners and have taken 15 losers. Do you think I'm ready to go live and trade my account using this strategy?”
A. It sounds... ››› more
Bidcorp's share price is hitting a ceiling after a V-shaped recovery from the March lows. The R280 to R290 is an area of congestion for the share price and a sustained break above R290 is unlikely. The downside risk is a return to the R250 level. We'll look at the chart in a minute.
Today marks BidCorp's financial year end and the past 6 months have been a tough environment with significant r... ››› more
Q. “Hi Timon, I've recently joined Red Hot Storm Trader after following you for the last couple of years. I now feel almost ready to take action with my trading. Do you have a set bunch of questions you answer before you take a trade?”
A. Before I take a trade, I ask and answer the same seven questions each time…
1. Has a trade lined up according to my strategy?
... ››› more
Q. ”You have suggested that you've moved your stop loss on Kumba to close your trade at R363.00 to lock in a gain of 22.81%. The entry price was R350.18 and with the difference between the two is R12.82.
This is only a 3.66% move from where you entered. How do you arrive with a gain of 22.81%?
I look forward your explanation.”
A. To understand how I banked a 22.81% gain, w... ››› more
It's been an absolute roller coaster for the rand this year.
In January it was trading strongly at R14.50 to the US dollar.
In late April, we thought it was the end of the rand as it traded at R19.00 to the dollar.
And now, it's currently trading at R16.55.
I believe there's been two main causes for the rand's volatility namely.
South Africa entering into ... ››› more
Q. “On Tuesday I bought 100 Remgro shares and when I woke up on Wednesday to check the markets, I was holding 69 RMH (Rand Merchant Bank Holding) shares instead. Please can you explain what happened?”
A. Believe it or not, the exact same thing happened to me.
Remgro went ahead with the unbundling process in Rand Merchant Bank Holdings to its shareholders.
Unbundlin... ››› more
Last week I mentioned that the worst was finally over for America and that I expected the Dow Jones to hit new all-time highs.
This was based on three things…
• The boost in confidence as the economy was starting to re-open.
• Two bio-tech companies announced the progress of future vaccines for the coronavirus.
• The federal reserve to inject $600 billion for SME (Small-Medium En... ››› more
“Hi Timon, I'm looking to risk around 4% per losing trade to make 6% per winning trade on average.
According to my backtested strategy, I should make 5 winning trades and 5 losing trades per month.
Could you please tell me what percentage return I should expect per month, given the above trade specifics?”
A. To find out the percentage you expect to gain per month, w... ››› more
It looks like the worst is finally over for America.
There is a boost of confidence and optimism as the economy is slowly starting to re-open.
Data showed that the US consumer confidence moved up in May, as investors are starting to feel more positive as the economic restrictions are coming to an end.
With the new potential coronavirus vaccine on the way, Americans are beginning to fee... ››› more
Q. “Hi Trading Tips readers, Timon here…
I have an important question for you. As you might have noticed in the last week, we have undergone a few important renovations on our main website.
And so, I wanted to ask you…
Did you know that we have a one-page go-to-place where you can learn everything about who we are and what we have to offer you?
Our goal is to hel... ››› more
On Monday (11 May 2020), the Bitcoin Halving event took place for the first time in four years.
This was where the miners reward for Bitcoins per block was cut by half, from 12.5 Bitcoin down to 6.25.
I told you I expected Bitcoin to rally in the next couple of months.
Not only because, historically the Bitcoin price rallies after every Bitcoin Halving event but because there is on... ››› more
“Hi Timon, I'd like to bank an extra income a month while I'm in lock down… I am a 52 year old male and I would like to leave quarantine with a strong foundation with trading and maybe even a decent amount of income.
Before I join would like to ask you just 13 quick questions.
Please can you answer them briefly.”
~ Jim P
NOTE: You'll find the answers below each question…
__... ››› more
I received an email the other day from David Deebs…
I'll leave you with the question he asked which I'm sure will resonate with a lot of my Trading Tips members…
“Timon, I’m still umming and ahhing whether this Red Hot Storm Trader Service is what I’ve been looking for to generate an extra income for my future. I think the final decider will be when I see WHY this... ››› more
In the last few weeks, we've finally seen good news come out for South Africa.
I don't want to go into too much detail, but I'll highlight a few of the main points including:
• More businesses and economic activity has started to resume since moving from Level-5 of the lockdown down to Level-4.
• The government has told South Africa that there will be no more load-shedding from Es... ››› more
There seems to be optimism flowing back into European markets.
Particularly in the UK as, in the last month, we've seen the FTSE 100 recover over 18%.
This is due to a number of reasons including:
• The COVID-19 infection rate is slowing down
• Talks about the ease of strict lockdowns
• The pound strengthening at an alarming rate
• Investor confidence entering the stock markets... ››› more
***What's a circuit Breaker?
Q. Circuit Breakers? This is a new term that I've been seeing on Bloomberg lately. Could you explain what it means and does it apply to the JSE as well?
A. A circuit breaker is a safety device which stops the flow of electricity by switching itself off, if anything goes wrong.
The same applies in the financial world…
A circuit brea... ››› more
Q. Timon I have an issue with my strategy… I follow a simple Moving Average trading system. With the current lockdown, I have a lot more time on my hands to trade in a week.
My problem is that my system sometimes doesn't even line up one trade in a week.
Can you tell me a few tips I can use to help me increase the number of trades I take per week?
A. I understand it can be ra... ››› more
On 3 February 2020, I sent out an article:
WARNING: The deadliest threat to the JSE
At the time the JSE All Share Index was trading at 55,000…
I predicted that the index would drop to 50,405 in a couple of weeks…
Did you miss ANOTHER triple-digit gain this last week?
Those canny Pickpocket Traders didn’t - thi... ››› more
As I write this, over 1.8 billion people are currently in lock down.
This includes us, South Africans, as of 26th of March 2020.
And while most of us are twiddling our thumbs at home, we are probably asking the same questions.
1. What can I do with my time?
2. How long will this thing last?
3. Where is a safe place to invest my money?
I might not have the answer to the first two, ... ››› more
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