When market uncertainty is prevalent (like it is right now in South Africa), investing in this asset helps fund managers combat the triple portfolio threat of risk, volatility and losses.
And what's more important than making money?
Not losing it!
So how exactly does it do this?
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A Guaranteed Income Booster You simply Can't Igno... ››› more
Nothing could prepare investors for the volatility that we've seen in the markets in recent months. It's been interesting to watch the economy dodge junk status, the JSE tank under Brexit and investors scramble around trying their best to find investment opportunities.
The good news is, just because the financial markets are going crazy, doesn't meant there are no opportunities for your to pro... ››› more
Today, I'm going to show you a simple strategy that'll allow you to potentially double your portfolio's gains (or more).
It's also a great way to protect your investments in a market downturn.
And, if the markets go bad, it can add another level of protection to your portfolio.
And the best part… When increased volatility makes the market tough to invest in, this strategy really comes ... ››› more
Stop losses are a great strategy to use. They prevent you from suffering a catastrophic loss with one or more shares.
The key to using stop losses is to stick to them. Over the long run, you should benefit from cutting the losers out of your portfolio.
But when stock market volatility hits and a number of your shares hit their stop losses, it can be disheartening.
But don't let it…
... ››› more
The market has been a volatile place over the past few weeks. When the market is behaving like this, it can be difficult to know what to do next.
Your decisions will depend on whether you're a trader or an investor.
Let's take a closer look…
How long-term investors should deal with stock market volatility
Investors tend to invest for long-term returns from the stock market, ignori... ››› more
Investing in shares is all about making money. Ideally, you want the stock market to soar, making you richer along the way.
But as the financial crisis of 2008 showed, the stock market can fall and fall hard.
That's why it's vital you have a mechanism to control your losses when investing in shares.
You need to decide how much you're willing to lose each time you invest in shares. Then yo... ››› more
The markets have certainly been on a volatile ride over the past week or so. It's not surprising many investors are worried about their portfolios.
Financial headlines don't help, fuelling panic.
So what should you do? Should you sell? Or should you hold on?
Read on to find out…
Have to handle stock market volatility
When the stock market is up and down so ferociously, it’s h... ››› more
Stop losses are a great way of knowing when it's time to admit you're wrong about a stock you've put money into.
But how do you know what level to set your stop loss at? And can you use stop losses to protect your gains too?
Read on to find out…
When to use stop losses
Unless you have nerves of steel and are an extreme value investor like Warren Buffett, stop losses make perfect s... ››› more
Bitcoin has amazing potential. It has the potential to revolutionise so many aspects of the finance world.
But there is one problem with Bitcoin. And that's the volatility of its price.
Let's take a closer look…
The price of Bitcoin continues to bounce about
Since its launch, the Bitcoin price has been on a roller coaster ride.
Just have a look at the chart below. This shows th... ››› more
While I was cycling at the gym yesterday, Irvan, one of my Red Hot Storm Trader subscriber's introduced himself to me.
We chatted about how he started trading and his passion for trading the markets.
As I was about to leave, he asked a very good question,
"How do I choose what stocks to buy?"
I answered back with two words, “Healthy and Blue”.
I'm sure right now, you have t... ››› more
When you find a new share or other investment opportunity to put your money into, it's easy to concentrate on the potential profits you can make.
Many investors give little thought to the risks involved.
Investors got a stark reminder last month when stock markets around the world pulled back. This showed many investors that the stock market can be very volatile.
So why exactly is volatil... ››› more
When the stock market takes a sharp dip, it's a natural response to want to sell your investments. Fear drives panic.
So what should you do when the market is volatile?
Read on to find out how to deal with it…
What you could do when the stock market dips
You have four basic options during a stock market correction. You can:
Buy;
Sell;
Go short; or
Step ... ››› more
Volatility in the stock markets has been on the increase over the past couple of weeks.
The large swings in global stock markets, including the Johannesburg Stock Exchange, are testament to that.
So what does volatility tell you about the stock markets? And does it give an insight into what's ahead?
Let's take a closer look…
What does volatility in the stock markets mean?
Vola... ››› more
I remember my childhood days like they were yesterday: Summer meant long road trips, cold ice cream, camping trips, park rides, and lots of outdoor games.
These days, summer means irregular volatility, thinner liquidity, and higher margins for me. (And cold ice cream, still got to have ice cream.)
Liquidity tends to choke up in the summer, because this is the time of year when stock traders... ››› more
The Volatility Index, or the VIX, is a sentiment indicator. The index measures investor sentiment about current volatility in the market. A measure of anything above 30 shows high volatility. A measure below 20 shows low volatility. So how does it measure up with the way the market performs? And how should you read it? Let's take a closer look…
The VIX hit a high during the financial crisis
... ››› more
The stock market is volatile. Share prices bob up and down from highs to lows. It's this volatility that makes the stock market risky. But it's also this risk you undertake when you invest that has the potential to make you money. So what's the best way to deal with stock market volatility? Read on to find out…
Strategy #1: Time
One of the best ways to cope with volatility is time in the mar... ››› more
When you buy shares, you're taking on risk. It's risky because if the company goes bust you're last in the queue to get your money back, so technically you could lose your investment. But with this risk comes the higher chance of decent gains. But that's not the only risk you'll encounter, there's also volatility. So what is volatility? And what does in mean for your investment? Read on to find ou... ››› more
In an ideal world, you could make a great return on your money with no worries attached. Unfortunately, this isn't the case. With investments, you have to accept the relationship between risk and return. The more risk you take on, the higher the potential gain is. Let's take a closer look at risk when you invest…
What is risk?
When we talk risk with investments, it all boils down to volatil... ››› more
Warren Buffett is famous for his astounding stock market investment success over the years. He's the world's fourth richest person, with a net worth of over $52 billion. Every year, in his letter to the shareholders of Berkshire Hathaway, he provides snippets of insight into his investing success. Here are four tips that you can take from his most recent letter to help boost the success of your st... ››› more
There is nothing a short term break-out trader hates more than, a sideways market that doesn't move much.
When the market is directionless, there are so few trading opportunities to make big and quick gains.
Well, for the last five years, the market has been flat and boring and profitable trades have been very scarce.
But now the SAVI index is telling traders that there's a ‘profit pa... ››› more
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