Newest Newbie - help needed

[#1]

R10k limits you to a buy to hold strategy only - you can't move in and out with only 10K because the comms, slippage and holding costs will eat your profits and magnify your losses. Take Simon's advise for sure!

[AS_1]

Hi guys, also a newby at this, can I build op some trade capital in the beginning by trading let say the in the top 40 company's just for dividens. Try and buy them let say +- twee weeks before LDT and sell them of after the price has recoverd +- twee weeks after LDT.Can this system works to genegrate over the short time som trading funds?

[richardw]

Nope, because the price drops after divs. Any tricks that could have been thought of, were probably thought of 100 years ago!

[AS_1]

Does the prices not normaly recover to the normal price after a week or two, three to let say the price I paid for the stock twee weeks before LDT.

[SimonPB]

yes .. mostly .. barry uses this stratgy as I understand .. but longer time period ..

[Blik]

Not always - maybe use Telkom as a proxy on your thoughts here. It may take a share a while to recover if at all. Look at the reasons why the company is paying a dividend and look at its dividend history. There has been talk on this forum that Telkom issues a super high dividend yeild to prop the price up before the VOD unbundle. If that is the case, then there is no real reason for the price to recover to predivi prices any time soon.

[#7]

10 k on a derivative worth 10:1 could be more than enough, used 14 K on EXX with gearing 10x up 27.4 % underlining x 10 gearing = 274 % 28 days

[#8]

come on hennie, you know better than that! I can get even better gearing and returns on a lottery ticket - the point is that R10k won't enable me to take any losses, which a trader absolutely has to be able to do

[#9]

Yes you can ! but are you thats the question ?? Lotto HAHA nice I like that

[SimonPB]

tkg is way a special case ..

[#11]

Dcee, like I posted in your other question; Best advise I have learnt from these guys,

Whats your exist stratergy?

So what ever you decide make sure you know when and how you are getting out and stick to it. If you want to make 20% per year thats it. You could be lucky and get a share that jumps 30% but ask fr advise from the forum about keeping selling etc.

If you cannot afford to loose the funds, invest for the longterm (5 years plus) and the market should treat you well, provided you make small corrections along the way. Corrections could be adding to your portfolio as time passes and more funds are available, or selling out of that sector/stock you chose due to poorer performance that you expected or a change in stratergy etc. (exit stratergy).



Trading takes time and lots of emotional detachment. Ask Eddie66 about emotional trades. He lost over 150k in one day due to emotion over riding logic.

If you choose to learn trading, ask for advise and take it seriously. These guys are not here to see you leave as soon as possible. From what I have figured they are all tough talk but true traders and investors are a small community and its not in their interests to tank a newbie.

They might send you on a quest to learn somethings for yourself but if they spoon feed you everything you will not learn anything.

Lastly stay away from high risk trades (SSF, CF, GAPS etc) until you have many months/years experience.

Attend all the free courses that OST offers.

[#12]

Apparently Eddy66 went long on AGL today, as you can see -3%

[#13]

Yeah that's what ALL the books and articles say that I've read so far - especially on the emotional side. I have definitely learned more than all these books and articles taught me from one post and getting some many replies - so thanks again for everybody's contribution, I'm definitely taking note. Like I said before I will definitely ask more stupid questions soon but work is interfering with my life at the moment so time is a bit of a problem... ;-)

[South_Easter]

Divide Your 10K into 5 chunks of 2. Presently we are in a broad bear market so assume that prices can go down and by quite a lot. Take a stab (first 2K) at a medium cap share that you like, that has a good track record and that is recession resistant. Keep the rest as dry powder and wait. If the price drops meaningfully below your first entry point then take another stab. Average your new entry cost and repeat. In summary in a bear market you want to accumulate as many shares as you can for your buck. In a bear market good shares tend to be worth more than bad money. Once you have accumulated stick with your holding and wait. Ultimately your success will depend on your choice of share and the bargain you got it at. Using the above strategy ensures that you are in the market, so you wont be left out, and you have plenty of ammunition if prices drop. Use a Satrix fun if you want a spread of shares.

[Russ]

Isn't it possible that a new bull market has started?

[louisg]

Perhaps, maybe. We'll find out in a year or two's time.

[#17]

To South Easter, so your first 2k will cost you around 5% in transaction fees (around R100). Your next 2k will cost you the same. All in all, once you have committed your 10k, you will have spent around R600 in transaction fees (6%) and your sale will cost you another 1%. Then OST will charge you your monthly fees, so you can expect to pay another R700 odd per year. Your investment will need to outperform 13% in Y1 just to break even and a further 7% in Y2. Since you will be cost averaging, this is extremely unlikely. If you want to cost average, rather use standard banks AutoShare Invest scheme, it is far more cost effective.