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Online Share Trading

Engage and learn about markets and trading online

advice

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dhara
Not applicable
wats the quickest way to accumulate money from a small capital when u r dealing with shares is it dividends or is there something else
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21 REPLIES 21
CrownA
Super Contributor
Quickest is the SSF but you can lose more than you put in, so I think warrants. Not many warrants anymore except on the blue chips anyway. Play the big ones of the TOP40, eg. AGL, BIL, SOL, GFI,SBK,etc.
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Wumpus
Frequent Contributor
...of course, you'll try warrants. "Sometimes you can make 50%, 60% in a single day!", you think to yourself. I'll be different and let logic govern my actions. Yet, you'll lose all your money... Learning the same lessons the hard way, like the vast majority of us. Then you'll either go away for ever or you'll come back and learn from your mistakes.
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cfm
Super Contributor
The quickest way with a small capital is robbing a bank, but there are some negatives with that. Other than that. Be prepared to loose you capital. Twice. And by the third time, you will know the answer to your question.
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theyoungster
Super Contributor
just like a job investment takes work,,dont just blindly throw your money into company and hope it rises, do research, look at charts..investigate...ask peoples opinions if you unsure,,and dont let these people scare you about warrants..if you investigate the underlying do proper research and trade warrants with delta's over 0.50 to be safe...them you should be safe...i've certianly made more out of warrants than i've lost...
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Not applicable
Be very very careful of warrants. *In theory* they might be less risky than SSF's, but that's only if you wipe out your trade.
Warrants WILL kill you with time decay if the underlying is not trending over the period of your trade.
Other than that, if you actually do end up making money, then SSF's and warrants will give you similar returns.
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Not applicable
there is something else.......u can day trade and show capital gains 23% per day consistently...its hard work but it can be done....that equates to about 8000% per annum.....I will do an experiment today and try and record this to show how you can do this by scalp trading....
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Preston
Super Contributor
ALternative use a geared product to do day trading..It is not the R40 per share that i am after but rather R2 and if done proper can bring you between R2000 to R4000 a day. It has less stress and you can sleep well at night.
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louisg
Super Contributor
A dividend strategy is probably the slowest but is more certain and easier. Day trading is the quickest way but is a lot less certain and by far the most difficult. It all depends on your time horizon and objectives. If you need to double your money in a year, learning to trade would be your route. However, if you are looking to invest towards a long term objective, a dividend strategy will certainly be a strategy to implement.But BEWARE, you have to be exstreemly patient, I mean really patient, and stick to your guns.
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Not applicable
Chartist, what do you mean by scalp trading????
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Not applicable
scalp trading takes advantage of situations in which the market has overshot itself...when fear is at its highest (or greed) or if stops have triggred.....the best kind of scalp is when a level has been breached....scalps yield 30 - 50 pts at a time..i.e. 200 - 500 zar....sometimes you are lucky and they run ........
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Not applicable
for scalp trading you need to make sure your greed level is really turned down low (I usually pretend I am playing a computer game...picking off idiots as I buy from them or sell to them)...you need a quick finger ....scalps are easier if you use bollinger bands...its a fact (it really is) that prices stay withing bollinger bands 95% of the time...the 5% of the time you catch them outside thats money for Jam...
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MAGICIAN
Frequent Contributor
Preston - don't want to sound stupid but what is a geared product?
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SimonPB
Valued Contributor
AVS, I have been reading up on managing risk re futures. The bottom line seems to be that it is a certainity that if you always bet the farm, one day you will loose it. In other words one will bust out one day. The other issue is the risk/reward, leverage ideally increases risk and reward at the same rate so they remain in balance. Except that one can be wiped out, which actually skews leverage towards the risk side .
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john_1
Super Contributor
Chartist it is also the point most likly to bring the big guns into the futures market (the arbitage players) as they are looking to lock in a minimum of 30 points between fair value and the futres. excessive greed and fear by definition means a move away from fair value.
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barry_1
Super Contributor
Does not matter how old u r how long u have been trading,there is always something u can learn,thanks Chartist,i'm going to try outside bollinger band trading,sounds a reasonable presumption,should work.
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Preston
Super Contributor
Installments
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Not applicable
I will show this in my video....when the big boys coem in with the 100 contract bids its time to take the opposite side of the trade....they are usually trying to wipe out the discounts (either) way between the futures and cash markets (there is usually a contango of about 350 pts)...point is they are forced sellers...they dont do this cause they want to...by the time they have woken up the market has resumed the trend...
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Not applicable
just sounds as if someone has been losing money to me...he should read fooled by randomness....
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Not applicable
anything which amplifies the movement of the underlying...with all geared products/derivatives all you are doing is lending money to trade with...I know the banks will use all kinds of fancy more palatable terms but what you are doing is betting with money you don't have...
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