alsi

[nala]

Hi all . There are few traders that trade the Alsi directly with the JSE. Can anyone shed light on this ? Is there any advantage trading it via a stockbroker like SBK . What capital do I require to be able to trade directly . What are the cost?

[SimonPB]

you always have to go via a broker, they enable access tot he JSE/Safex exchanges ..

[#3]

Simon, I read an article some time ago in one of the financial magazines about elite traders that do, in fact, trade directly on the JSE - they are their own brokers, as far as I can tell. The guys deal in millions, with their own direct feeds. They use swordfish, or some other commercial OTC trading software.

[SimonPB]

sure, they set themselves up as a broker, as such they are then their own broker .. expensive operation as you need compliance etc. even if just a one person show

[#5]

would be interesting to see an interview on these guys. They operate in a whole different league to us ...

[SimonPB]

ya, they don't do interviews .. no reason for them to put themselves out there

[Rams]

If you starting out on ALSI trading , brokerage fees is the least of your worries....worry more about capital preservation....if you start trading ALSI , concentrate more on still being here in 6 months .....

[#8]

Ive spoken to quite a couple of these guys, whether algo traders or hedge fund managers, what I can tell you is that they are really not that mysterious.

All they do is have a couple of strategies, trade them daily, keep their losses small and keep their brokerage small.

You know how there are those "trading fundamentals", be disciplined, only trade your strategy, dont get emotional, etc....well there are people that catch on quite quickly and they simply do it, while most retailers struggle with this ideas for years.

The reason why retailers struggle with it has a lot more to do with capital, retailers want to earn R 20k a day on ALSI but trade with 3 contracts. Large funds do earn R20k a day but they trade with 300 contracts. Ie what we want is the biggest downfall, personally I believe its the most common reason why we break all the other fundamental rules.

[Rams]

Ah, that interesting and point made, but consider this....300 contracts is about R12 million......at 10% per annum! I could get about R5000 per day....if my figures correct, i would rather stick my 12 million in 10% fund...

[#10]

each person has their own circumstances and risk tolerance, Buffet didnt become rich by putting the money into another fund.
We all just trade our own financial plans.

If I had a fund of R 100 million then I see no reason not trade 300 contracts, it all just comes down to portfolio allocation.

[#11]

out of curiosity the R12 some change fees for alsi is that the full brokers commission or is that split between jse and the broker?

[SimonPB]

split between Safex/clearing and broker

[#13]

thanks simon

[#14]

thanks simon

[nala]

Thanks all for your input. So what is the edge that these guys have dealing directly with the JSE that we do not have with say SBK s Easy Trader ? - besides brokerage cost.

[nala]

Thanks all for your input. So what is the edge that these guys have dealing directly with the JSE that we do not have with say SBK s Easy Trader ? - besides brokerage cost.

[nala]

Thanks all for your input. So what is the edge that these guys have dealing directly with the JSE that we do not have with say SBK s Easy Trader ? - besides brokerage cost.

[#18]

their brokers dont get to see their movements.
They also typically use coded algorithms to enter their orders, you cant code anything and enter it through easytrader.