Have a buy signal - positive divergence on MACD + crossover, so I'm going long ... but that's just my view. Thanks Chartist for the idea re entry levels - ran a back test of it for all my signals on gold over the past 6 months and it increased my profit by about 35%!
Don't try and time the market. Decide on your strategy and stick to it (keep it broad). We are in the bear part of a 34 year trading range and commodities are on the up. This means, Simmers (a speculation), Goldfields (a bluechip), etc. Lay in. ie decide what you want to buy every month and buy it. Even if it's only R5000 worth of shares at a time. Remember that the more tax you pay the better you feel! This is because you have more money in your bank account even after paying the tax. But use a tax specialist so that you don't pay more tax than you have to. Ignore suggestions such as "you can save tax by buying this car" and rather look at the long term consequences on your cash flow. (Never buy a new car - one that is at least a year old is best) Put 75% of your investable cash into shares and 25% into cash or the Gold ETF. Buy a Kruger Rand and keep it near you but not somewhere anyone knows about. It's great to feel and look at an ounce of gold as it has real value and is not a fiat currency. Make up your own mind, regardless of what you read on this forum. Only about 1% of SEQ's clients use this forum, but perhaps we are the really interested and interesting :) ones. Read everything you can about investing before you start. Don't worry if you buy shares and they are down the next day. Use stop losses if you want and set them as trailing stop losses at 25% for blue chips and 35% for speculations. You won't always be right. be careful of "past success messages are an indicator of future success." eg look at all the top 40 companies that aren't in the index anymore. The top 40 index always has the top 40 companies at a particular time and gets updated every 3 to 6 months. If you can afford it buy some of the commentary. I buy the commentary from Zeal, www.zealllc.com, and I recommend it. Read their free commentary on Saturday mornings and read http://www.zealllc.com/2004/survive.htm.
Hi, guy, this is very clear written streetwise advise. Thx. Made me feel a bit better w r t the nose dives on some of my shares recently. Taking the new SARS approach (from 1/10/2007) on taxing share profits into account I decided to take a non speculative minimum holding term of 3 years - unless, of course, negative signals force me to sign out on any particular holding.
Huaron's advice is excellent. I'd like to add a few things tho. Always keep a steady supply of Smarties on your desk (marshmallow fish will do in a pinch), when you find the perfect shade of red lipstick buy two cos they will discontinue it, and be wary of people who like dogs.