"Global markets at resistance" was the main heading for my recent issue of Stock Market Outlook, a trading newsletter I write for a club membership database on a weekly basis.
This weekly investment newsletter and trader's update focuses on the global indices, global commodities and then local stocks in South Africa as well as the Resources index and FINDI index.
I spoke about trading KUMBA Iron Ore last week Monday when it opened at 23200 and ended up at 26600 yesterday. Only 8 days to achieve over 10% return! That's no playing around! It's also not geared either. My medium term target for Kumba is 32000.
I was long of S&P 500, Wall Street and DAX last week to close near the highs of the top of the channels on these indices.
This week, the focus was off the stock markets and onto gold again. After sitting on $1000 it rallied back to my target of $1150within a very short space of time.
Now I wait for the global markets to settle at or near their support levels on the channel. Once this happens which should be by early next week I will be taking short term trades in the stock market again.
As the dollar weakens, commodities will rise. It is a patient game waiting for the dollar to turn, find resistance in its decline and then continue its downward movement. It is the opportunity to take longs on commodities again and stocks that mine those commodities.
It's fascinating but there's always something to learn.
Short term trading is't all its cracked up to be. People have a romantic disbelief about how exciting it is. The reality is that trading is mostly boring and repetitive.
It's a great hobby for retired persons and people who have wads of money. It is NOT for someone trying to replace their job.
Some people however, can find the happy medium of having a job and being patient while waiting for the trades to come. Building confidence in their trades but also mental discipline. Lastly growing their portfolio size over time like a professional golfer.
Support levels on the S&P 500 are 1093 in the short term. For the DOW it be 10100. The DAX is around 5400. KUMBA support is 24900 but could extend to 24400 odd intraday before closing on a hammer candle formation as example.
Watch the dollar. Keep an eye on the Baltic Dry Index. Copper is also a good early indicator as prices start to edge up.
Have a great trade,
Warrick
Financial & Investment Workshops, ebooks & financial freedom @ NEWSWEEK
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Showing posts with label Full Service Broker. Show all posts
Showing posts with label Full Service Broker. Show all posts
Thursday, November 19, 2009
Sunday, June 1, 2008
Choosing a Broker
Choosing a Broker
Depending on the type of investing that you plan to do, you may need to hire a broker to handle your investments for you. Brokers work for brokerage houses and have the ability to buy and sell stock on the stock exchange. You may wonder if you really need a broker. The answer is yes. If you intend to buy or sell stocks on the stock exchange, you must have a broker.
Stockbrokers are required to pass at least 4 different exams in order to obtain their equity license. These exams are very difficult, and most brokers have a background in business or finance, with a Bachelors or Masters Degree. To be able to trade on behalf of clients in derivatives requires another 3 exams to be qualified.
It is very important to understand the difference between a broker and a stock market analyst. An analyst literally analyzes the stock market, and predicts what it will or will not do, or how specific stocks will perform. A stock broker is only there to follow your instructions to either buy or sell stock… not to analyze stocks.
Brokers earn their money from commissions on sales in most cases. When you instruct your broker to buy or sell a stock, they earn a set percentage of the transaction. Many brokers charge a flat ‘per transaction’ fee.
There are two types of brokers: Full service brokers and discount brokers. Full service brokers can usually offer more types of investments, may provide you with investment advice, and is usually paid in commissions.
Discount brokers typically do not offer any advice and do no research – they just do as you ask them to do, without all of the bells and whistles.
So, the biggest decision you must make when it come to brokers is whether you want a full service broker or a discount broker.
If you are new to investing, you may need to go with a full service broker to ensure that you are making wise investments. They can offer you the skill that you lack at this point. However, if you are already knowledgeable about the stock market, all you really need is a discount broker to make your trades for you. These can be online brokers as well and there are many local and internationally based companies you could sign up with in order to trade different stock markets.
References:
Afrifocus Securities
Online brokering accounts available
Trader’s Bookstore
Top Ten Selling books for beginners and advanced investors & online traders
Brought to by http://www.newsweek.co.za/ Investment Workshops, Cashflow 101 Club, books & more
Depending on the type of investing that you plan to do, you may need to hire a broker to handle your investments for you. Brokers work for brokerage houses and have the ability to buy and sell stock on the stock exchange. You may wonder if you really need a broker. The answer is yes. If you intend to buy or sell stocks on the stock exchange, you must have a broker.
Stockbrokers are required to pass at least 4 different exams in order to obtain their equity license. These exams are very difficult, and most brokers have a background in business or finance, with a Bachelors or Masters Degree. To be able to trade on behalf of clients in derivatives requires another 3 exams to be qualified.
It is very important to understand the difference between a broker and a stock market analyst. An analyst literally analyzes the stock market, and predicts what it will or will not do, or how specific stocks will perform. A stock broker is only there to follow your instructions to either buy or sell stock… not to analyze stocks.
Brokers earn their money from commissions on sales in most cases. When you instruct your broker to buy or sell a stock, they earn a set percentage of the transaction. Many brokers charge a flat ‘per transaction’ fee.
There are two types of brokers: Full service brokers and discount brokers. Full service brokers can usually offer more types of investments, may provide you with investment advice, and is usually paid in commissions.
Discount brokers typically do not offer any advice and do no research – they just do as you ask them to do, without all of the bells and whistles.
So, the biggest decision you must make when it come to brokers is whether you want a full service broker or a discount broker.
If you are new to investing, you may need to go with a full service broker to ensure that you are making wise investments. They can offer you the skill that you lack at this point. However, if you are already knowledgeable about the stock market, all you really need is a discount broker to make your trades for you. These can be online brokers as well and there are many local and internationally based companies you could sign up with in order to trade different stock markets.
References:
Afrifocus Securities
Online brokering accounts available
Trader’s Bookstore
Top Ten Selling books for beginners and advanced investors & online traders
Brought to by http://www.newsweek.co.za/ Investment Workshops, Cashflow 101 Club, books & more
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