The term banking crisis is often overused. Certainly, there are times when it's appropriate, like during the 2008 Global Financial Crisis, however it's usually just a term used to describe a rather minor disruption to the normal functioning of a country's banking sector. Well, that's not the case with China currently.
The country is in the midst of a true banking crisis. How bad is it? Well, th... ››› more
The US consumer price inflation rate (CPI) for June 2022 was released last week, coming in at a shocking 9.1%. By comparison, the number for last year, June 2021, was 4.9%. And back then, this was seen as a huge problem. Remember, the US targets an inflation rate of just 2%.
That's the bad news. The good news is we're seeing definite signs the inflation rate is set to fall.
US gasoline price... ››› more
The US Fed is a main player in the world's financial system.
As the central bank of the world's largest economy, and thus the institution that controls the world's reserve currency, its rate decisions are always closely watched.
However, in the current high inflation environment, it takes on an extra level of significance. I would go as far as to say, that if you are looking to make any type... ››› more
Q. “I've been looking at stock trading lately. I see each share is calculated according to market capitalization. I'm trying to wrap my head around this. Could you explain the difference between market capitalization, shares outstanding and shares floating?”
A. With stock, you are 100% correct in saying it is calculated by market cap.
Each listed (public) company has two types of share.
... ››› more
Inflation is high, prices of everything, except for stocks, are rising.
It's been a tough time investing in 2022 so far.
But still there are great opportunities on the JSE.
In fact, some small cap shares are doing exceedingly well…
Let me explain. In case you missed it: Pickpocket’s Trader X closed out a USDZAR trade for a 155% gain on 27 June and just yesterday he moved his stoplo... ››› more
For younger readers it might be hard to understand what a big deal Japan was before the 1990s. This relatively small country, devastated by WW2, rose like a phoenix from the ashes and became the world's second largest economy, in little over a single generation.
If you were to ask people in 1990 what Japan's future would hold, most would have told you it was set to become the next global superp... ››› more
Over the last few months, I've written quite a few rather bleak articles (to say the least). I've issued warning after warning about the state of the financial markets. So, if you follow my Money Morning column regularly, you may easily believe I'm a permabear. A permabear is someone who believes markets will fall no matter what the conditions on the ground look like.
Given my very negative sla... ››› more
There's no doubt about it…
“Map apps” have revolutionised the way people travel.
In less than a minute, you can open an app on your phone, type an address and voila…
You're ready to go.
It's no wonder why “map apps” like Google, Waze (owned by Google) and
Apple boast hundreds of millions of users - even BILLIONS!
But one day that could change.
You see, a new crypto s... ››› more
Q. “Hi Timon, I have a R250,000 portfolio and I am using the special 2% risk rule per trade as you have taught us. Based on your last trade with Shoprite with the entry being R242 and your stop loss being R232.00 does this mean I should buy xxx CFD contracts in this trade?” Hi Pete,
The number of contracts purely depends on the how much money you deposit…
So if you have a portfolio of R2... ››› more
The next time you travel to Europe, it might be very affordable.
You may actually be able to travel to the hotel of your choice, eat at any restaurant and enjoy the tourist attractions without hurting your pocket.
I'm in Greece right now for a few months and I've got myself a little place in the heart of Athens and I must say, all furniture, appliances, TV and other accessories are super che... ››› more
In our QA mailbox this past week...
Q. “I am with Pickpocket Trader and before I take a trade, I would like to know how to calculate the number of international CFDs I need to buy to risk 3% of my R55,000 portfolio. Let's use the example from the most recent trade sent out on 11 February 2022”.
A. You'll need four metrics to calculate the number of international CFDs you'll need to buy.
... ››› more
Since last year, emerging currencies have been falling.
Scrap that… CRASHING…
We aren't sure why exactly, but I think it's all down to what is happening with the US.
You see, the FED is expecting to raise their interest rates this year.
This will help dampen the inflation rate.
As this is good for the GDP and the economy, it will lead to US dollar strength and weakness among o... ››› more
Small cap shares, or penny stocks, were by far 2021's best performing sector.
My Red Hot Penny Shares closed portfolio provided us with an average gain of 72.82% on 20 stocks for 2021, with a win rate of 80%.
In comparison, the Alt-X index was up 30% for the year, whilst the All Share index is up 19%. The Small Cap Index was the top performer of the lot with 42% for 2021 to date.
I expect anot... ››› more
Every year we start off with our biggest, boldest and best predictions for the coming 12 months.
How will the world around us change? What will stock markets do? And where do the biggest opportunities exist?
Five predictions to start off the year
Prediction #1 - The pandemic will end in 2022
It’s the prediction no one has been willing to make. Just as we think things are taking... ››› more
I sometimes imagine the stock market as a constant humming. Not the hubbub hum of an open outcry trading floor, nor the electrical buzz and click of servers and machines, but the whine of millions of voices guiding billions of dollars, rand and rupees into bets on global business profits, economic scarcity and the future direction of mankind. It's the droning roar of the engine that powers the wor... ››› more
In Ernest Hemingway's 1926 novel “The Sun Also Rises” two characters are discussing bankruptcy:
“How did you go bankrupt?” Bill asked.
“Two ways” Mike said, “gradually and then suddenly”.
The “slowly at first, and then all at once” concept is wonderfully described in Malcom Gladwell's debut book The Tipping Point. Gladwell defines this idea as “the moment of critica... ››› more
The rand has really taken a beating this year.
In July I wrote an article, From Lockdown 4 to Jumanji - Here's why I'm selling the rand. I predicted that the rand would fall from R14.30 to R15.58.
This was due to local reasons such as the looting that took place, the slow vaccination roll-out as well as a bearish chart pattern.
And to catch you up, you... ››› more
On October 20, the ProShares Bitcoin Strategy ETF (NYSE: BITO) opened for trading.
It's the first crypto-linked exchange-traded fund (ETF) in the US market. And it had an immaculate debut - with $1 billion in volume on the first day.
That makes BITO's debut the second-most actively traded ETF launch in history!
Off the back of the launch, bitcoin rallied over 60%.
Even better, the ... ››› more
“I'm a member of Pickpocket Trader. On 9 September I bought the USD/ZAR (SA rand against the US dollar) at R14.15. Then by 20 September I see it hit my take profit price at R14.45.
Now in trading terms does that mean, I banked 30 cents or is there another term?”
You can find the full Article here:
... ››› more
Dear reader,
In today's article:
• Confessions of a lazy trader
• How to trade rand CFDs at a fraction of the price
• Why buy the Crypto Correction
Confessions of a lazy trader
Q. “I’m generally a lazy trader when it comes to calculations. I just want to take the trade without pulling out a calculator and pressing buttons to work out how many CFDs I’ll need ... ››› more
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