Focus For 2009 & Ahead!

Welcome to 2009! Great to have you on board for the trip.

This year I plan to focus on bringing you many more posts and indepth insight into my trading style, personality, concerns and stresses as well as triumphs and tribulations!

I am lookign to focus on the following instruments in 2009:

• ALSI40 - South African top 40 index using Spread tradin instrument
• Certain shares within the top 40 of the South African local market with a focus on the RESI sector (Resources, mining)
• Forex trading - looking at EU/$ over 4 hours and daily chart

So, if you have any questions on any of these give me a shout! I have noticed that the JSE-All Share index has made higher lows as well as break up through the 89 day moving average. This could be a signifcant event for our local market in the short term as it suggests a possible bullish rally after a short test of the 89 simple moving average ("SMA").

This event could trigger a bullish rally for the first quarter of 2009. Which means I could be finding myself in the equity market again on my first choice stock watch list. I did unfortunately miss some very profitable entries over the December period while taking a break... But such is trading. Besides, for the equity market I prefer to buy and hold so my timing needs to be in tune with the economy to a certain extent fundamentally speaking.

For the long term investments I certainly consider the economic cycle as well as global fundamentals before making a decision to enter a trade. On the short term trading side of my business, I focus less on the fundamentals and more on the technical analysis.

My aim tin 2009 is to describe my findings, experiences and outlook on the markets as a whole and then pin point certain trades I take and then elaborate on why I took them!

Come join me on a branch of the Trading Money Tree!

Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za

Determine Your Risk Tolerance

Determine Your Risk Tolerance

Each individual has a risk tolerance that should not be ignored. Any good stock broker or financial planner knows this, and they should make the effort to help you determine what your risk tolerance is. Then, they should work with you to find investments that do not exceed your risk tolerance.

Determining one’s risk tolerance involves several different things. First, you need to know how much money you have to invest, and what your investment and financial goals are.

For instance, if you plan to retire in ten years, and you’ve not saved a single penny towards that end, you need to have a high risk tolerance – because you will need to do some aggressive – risky – investing in order to reach your financial goal.

On the other side of the coin, if you are in your early twenties and you want to start investing for your retirement, your risk tolerance will be low. You can afford to watch your money grow slowly over time.

Realize of course, that your need for a high risk tolerance or your need for a low risk tolerance really has no bearing on how you feel about risk. Again, there is a lot in determining your tolerance.

For instance, if you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do?

Would you sell out or would you let your money ride? If you have a low tolerance for risk, you would want to sell out… if you have a high tolerance, you would let your money ride and see what happens. This is not based on what your financial goals are. This tolerance is based on how you feel about your money!

Again, a good financial planner or stock broker should help you determine the level of risk that you are comfortable with, and help you choose your investments accordingly. There is a Mentorship Programme for both equities and future’s trading offered along with very valuable workshops. These types of risk analysis will be able to assist you in your practical investment aims as well as the potential for generating income accordingly.

Your risk tolerance should be based on what your financial goals are and how you feel about the possibility of losing your money. It’s all tied in together.

Brought to by http://www.newsweek.co.za/ Investment Workshops, Cashflow 101 Club, books & more


Financial & Investment Workshops, ebooks & financial freedom @ http://www.newsweek.co.za