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25 METRICS and 10 BENEFITS of a Trading JournalTrading Journals are essential. It's your game plan to what you could potentially see in the future as a trader. In the above image are the 25 metrics every Trading Journal should have... And below are 10 benefits for having a trading journal... 1. KEEP TRACK A trading journal helps to keep track of your trades, including the reasons for making the trade, the results of the trade, and any lessons learned. 2. CUT OUR BAD HABITS It can help to identify and eliminate bad habits and biases in your trading. 3. POWERS DISCIPLINE A trading journal can help to improve your discipline, which is essential for long-term success in trading. 4. CONSISTENCY It can help you to develop a consistent and effective trading strategy. 5. FEEDBACK FOR REFINEMENT A trading journal can provide valuable feedback that can be used to refine and improve your trading. 6. FOCUS ATTAINED It can help you to stay focused and avoid making impulsive decisions. 7. TRACKS SUCCESS A trading journal can provide a valuable record of your progress as a trader, which can be useful for reviewing and analyzing your performance. 8. CONFIDENCE BOOSTER It can help to increase your confidence and reduce stress by providing a clear and objective record of your trading activities. 9. STAY ORGANISED A trading journal can help you to stay organized and avoid missing important details or opportunities. 10. LEARN AND IDENTIFY NEW POSSIBILITIES It can be a valuable tool for identifying and learning from your mistakes, which is essential for long-term success in trading. Why else do you think a trading journal is essential? Let me know and follow for more daily trading tips from information I've gathered over the last 20 years as a financial trader. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
The Money Multiplier of TradingThere is one tool with trading, which you can accelerate your portfolio, compared to with investing. I’m talking about Gearing (or leverage). To wrap our head around this concept, here’s a more relatable life example. When you buy a house for R1,000,000, it is very similar to trading derivatives. Initially, the homeowner most probably won’t have the full R1,000,000 to buy the house with just one purchase. Instead, they’ll sign a bond agreement, make a 10% deposit (R100,000), borrow the rest from the bank and be exposed to the full purchase price of the home. This is a similar concept for when you trade with gearing. Gearing is a tool which allows you to pay a small amount of money (deposit) in order to gain control and be exposed to a larger sum of money. You’ll simply buy a contract of the underlying share, use borrowed money to trade with and be exposed to the full share’s value. Let’s simplify this with a more relatable life example: How gearing works with CFDs Let’s say you want to buy 1,000 shares of Jimbo’s Group Ltd at R50 per share as you believe the share price is going to go up to R60 in the next three months. You’ll need to pay the entire R50,000 to own the full value of the 1,000 shares (R50 X 1,000 shares). In three months’ time, if the share price hits R60 you’ll then be exposed to R60,000 (1,000 shares X R60 per share). Note: I’ve excluded trading costs for simplicity purposes throughout this section If you sold all your shares, you’ll be up R10,000 profit (R60,000 – R50,000). The problem is you had to pay the full R50,000 to be exposed to those 1,000 shares. When you trade a geared instrument like CFDs, you won’t ever have to worry about paying the full value of a share again. A CFD is an unlisted over-the-counter financial derivative contract between two parties to exchange the price difference of the opening and closing price of the underlying asset. Let’s break that down into an easy-to-understand definition. A CFD (Contract For Difference) is an Unlisted (You don’t trade through an exchange) Over The Counter (Via a private dealer or market maker) Financial derivative contract (Value from the underlying market) Between two parties (The buyer and seller) to Exchange the Price difference of the opening and closing price of the Underlying asset (Instrument the CFD price is based on) Let’s use an example of a company called Jimbo’s Group Ltd, who offers the function to trade CFDs. The initial margin (deposit) requirement is 10% of the share’s value. This means, you’ll pay R5.00 per CFD instead of R50, and you’ll be exposed to the full value of the share. To calculate the gearing (or leverage ratio) you’ll simply divide what you’ll be exposed to over the initial margin deposit. Here’s the gearing calculation on a per CFD basis: Gearing = (Exposure per share ÷ Initial deposit per CFD) = (R50 per share ÷ R5.00 per CFD) = 10 times gearing This means two things… #1. For every one Jimbo’s Group Ltd CFD you buy for R5.00 per CFD, you’ll be exposed to 10 times more (the full value of the share). #2. For every one cent the share rises or falls, you’ll gain or lose 10 cents. To have the exposure of the full 1,000 shares of Jimbo’s Group Ltd, you’ll simply need to buy 1,000 CFDs. This will require a deposit of R5,000 (1,000 CFDs X R5.00 per CFD). With a 10% margin deposit (R5,000), you’d have the exact same exposure as you’d have with a conventional R50,000 shares’ investment. Here is the calculation you can use to work out the exposure of the trade. Overall trade exposure = (Total initial margin X Gearing) = (R5,000 X 10 times) = R50,000 With an initial deposit of R5,000 and with a gearing of 10 times, you’ll be exposed to the full R50,000 worth of shares. In three months’ if the share price reaches R60, your new overall trade exposure will be R60,000 worth of shares (1,000 shares X R60 per share). If you sold all of your positions, you’d bank a R10,000 gain (R60,000 – R50,000). But remember, you only deposited R5,000 into your trade and not the full R50,000. This is the beauty of trading geared derivative instruments. Hope that helps for those who don't really grasp Gearing... Trade well, live free. Timon MATI Trader
JSE:AGLEducation
by Timonrosso
4 Sacrifices every trader makesFirst of all, trading is not a short-term proposition to get rich. Anyone who says otherwise, needs to spend some time thinking about doing before speaking inside a jail cell. No… Trading is a lifestyle that you’ll need to adapt and integrate into yours and your family’s financial future. Whenever you start something new, especially for a financial gain, you’ll need to make some form of sacrifices. In today’s article we’ll discuss the four sacrifices every successful trader will make. SACRIFICE #1: Time The money is not going to just fall into your lap. You’re going to need to put in the time to work through the process of successful trading. As a new trader you’ll need to read as many books, websites and forums on how to trade. This will prepare you for what trading is all about. Then you’ll need to take time to learn which: • Markets you wish to trade • Method you’ll use to get in and out of your trade. • Money you’ll risk to grow your portfolio • Mind you’ll need to adapt to avoid any unnecessary emotions from taking over and interfering with the process. Then finally you’ll need the time to back-test, forward-test and actually trade on a daily or a weekly basis. This time can range from 5 minutes a week, which is what I follow with the MATI Trader System, to 5 hours a day if you’re more of an aggressive intraday based trader. No matter what career you pursue, you’ll need to sacrifice the necessary time to learn the ins and outs of it. SACRIFICE #2: Money Another inevitable sacrifice you’ll need to make is to take money out of your savings to trade. I say savings because you should never risk any money you can’t afford to risk or any money that you use on a monthly basis to finance your life. Once a month as you get paid, deposit just 5% of your savings into your trading account. This way you’ll be able to grow your portfolio at a faster and a more sustainable. The other side of money you’ll risk is of course, with every trade you take. Most successful traders out there risk around 1%, 2% to 3% per trade, in order to make a 2%, 4% or even a 6% gain on your portfolio. SACRIFICE #3: Thrill You’ll need to sacrifice the THRILL of trading and exchange it for FOCUS. Trading should be seen as a business rather than playing the lottery once a week. As much as I have loved trading the MATI Trader System for the last 18 years, I’ve also taken it very seriously. Before you commit any money into the markets, you’ll need to have a solid watch list, trading system and money management rules to follow methodically. This way you’ll have a mechanical approach to trading without the thrill, when you bank a profit or without the devastation, anger and disappointment. Remember that a winning portfolio is not about taking a few trades but the 100s of trades over time. Make sure you have the focus for when you trade in the week and sacrifice the thrill for on the weekends when the markets are closed. SACRIFICE #4: Space The final sacrifice you’ll need to make is to make space. Make sure your trading desk is clear of any distracting books, devices and objects that have no aid to your trading. A cleaner and clearer trading desk will prevent a number of distractions for when you trade which could result in unnecessary stress, anxiety and worry. Also you’ll most likely need to make space for just one more monitor. By having two monitors, you can use one for your trading platform to buy, sell and modify trades. The other monitor will then be used for your charting platform to analyse, assess and seek more trading opportunities. Are they actually sacrifices? Coming to the end of the article, I’ve just realised something. These four ‘sacrifices’ you’ll make as a professional trader – Are they sacrifices or are they just opportunities you can take for trading to be smooth sailing?
JSE:J200Education
by Timonrosso
IMplats long after a extended sideways move Target R259.69Cup and Handle has formed on Implats. The price has broken out and is meandering sideways before the next move up. Platinum companies as well as the precious metal is setting itself for great upside as investors and instiutions are piling their funds into the metal as a form of safe haven... We are going old school right now where the old ways work better than investing in unstable Cryptos... More bullish signs 7 > 21 > 200 Target R259.69 Bullish
JSE:IMPLong
by Timonrosso
A Santa Claus Rally for the JSE in 2022? What is expected from a Santa Claus Rally? The Santa Claus rally, is essentially where we see stock prices locally and globally rise and close off positively by the end of December. And so, we can expect a rally in December which we can all profit from… Why December? We aren’t 100% sure but we have some speculations on why the market tends to rally… #1: Investment managers cut down on their taxes This is the time when you’ll see investors and investment managers, selling their stocks to lock in tax reductions before the end of the year. Once they sell their positions, they then buy other stocks and markets that they believe will rally in the next year. The buying of these stocks, leads to a rise in stock prices which pushes the stock market indices up. Theory #2: Investors enjoy their bonuses by buying into investments Investors also like to spend their bonuses on investments like stocks… And when they buy, demand picks up. And this leads to higher stock market prices. Speculation is one thing. But nothing confirms a Santa Claus Rally more than proof in the charts… The JSE has gone up 14 out of 19 Decembers! What you see, is the monthly JSE-ALSI stock market chart since 2003… Looking at the chart you can see how each December (Vertical blue line) performed from 2003 up ‘till 2021 Year Gain/Loss Year Gain/Loss 2003 : 7.39% 2004 : 1.28% 2005 : 6.84% 2006 : 3.90% 2007 : -4.99% 2008 : 0.51% 2009 : 2.62% 2010 : 6.69% 2011 : -3.26% 2012 : 2.72% 2013 : 3.27% 2014 : -0.53% 2015 : -1.15% 2016 : 0.48% 2017 : -1.33% 2018 : 4.63% 2019 : 3.51% 2020 : 3.83% 2021 : 4.66% So, there’ve been 14 out of 19 Decembers (74% win rate) that have shown positive gains. And in total, the JSE has accumulated 41.07% gains in all of those Decembers. This means, you have a higher chance of profiting from buying this Christmas than selling. And right now, this December the JSE ALSI 40 is already up an insane 14.48% gain. And I am seeing no signs of a slow down yet… I guess a Santa Claus rally is more likely than not, but we have had three to four winning years in a row... Things are looking good for now but the month is young... Do you think we will have a JSE Santa Claus Rally? Let me know. Trade well, live free. Timon MATI Trader
TVC:SA40Education
by Timonrosso
1
Why I LOVE Trading View - Best I've seen in 20 yearsWhether you're new to trading or you’re an advanced chartist – we all have the same expectations when it comes to choosing a charting platform. It must be online, fast, safe, customizable and user friendly. And you know what – it should be free! With the high competition of charting platforms available world-wide, each company must ensure they have free, live streaming, cutting edge, secure and easy to use platforms to offer their customers and clients at the very least – top-notch service. I’ve used many charting platforms since 2003. From London School of Investments, Amibroker, MetaStock, ProTrader, Cycle Trends, IG Markets, Oanda, MetaTrader, Sword Fish… You name it. But there is ONE free charting platform, which has become my absolute favourite over the years, Trading View... TradingView (est. 2012) is a world leading, cutting-edge FREE online visualisation financial charting platform for beginners up to the most advanced professional traders, with over 10 million subscribers. The platform has direct access to unlimited live streaming data from stocks, futures, bonds, indices, Forex, commodities, ETFs and even crypto-currencies. It allows you to customise your watch lists, back test your strategies, share, publish or enjoy live and active trading ideas, signals and tutorials through the platform or directly to your Twitter and Stock Twits feed. With TradingView you’ll be able to enjoy this free charting phenomena across either your web browser, Android or Apple iOS devices. It's incredible to have such a thorough and advanced charting platform. It's even more amazing for new traders under 5 years of experience to have this cutting-edge technology platform to learn how to trade and enjoy the trading process... Trade well, live free. Timon MATI Trader
TVC:SA40Education
by Timonrosso
Losses are Just the Costs of TradingLosses are nothing! Come on. Don't you pay for food, electricity, taxes. Don't you run your company with expenses and costs? Don't you spend every now and then on a vacation, time away and even unpaid leave? This is life and it should be NO different with trading. Trading losses are nothing but costs that come with achieving future success. But... and it's a big but. Just like you can control whether to spend your ticket on Economy or First Class. Just like you can choose to go to a 3-star hotel or a 5 star. Just like you can choose between a chicken dish or a lobster. So to must you manage your risk with trading. The learning fees, and the losses you take with trading can all be controlled at a point with obviously your volume, the markets you choose and where you place your stop loss... Every trade needs to be taken into consideration with high risk management skills. Don't be scared of trading losses- it comes with the territory as with life. What do you think? Does this help? Trade well, live free. Timon MATI Trader Financial trader since 2003
JSE:J200Education
by Timonrosso
2
Prosus also long to R1,445.20 and correlates to Naspers ideaCup and Handle also has formed on Prosus with the Moving averages looking strong with 7>21>200 Target R1,445.20. There is a strong correlation with Naspers which is showing almost identical charts. The RSI has also broken above the Negative divergence and is in the upward momentum territory >50. The only concern as I often mention are the gaps in the charts which shows high volatility and potential for Gaps close. The bias however is bullish.
JSE:PRXLong
by Timonrosso
2
The BEST Trading IndicatorWith the ever increasing number of indicators, it makes sense that beginner traders’ wish to cut the steep learning curve by trying to find which indicator is the best and the most profitable to choose from. It’s overwhelming to start trading with so many jargon terms like, the MACD, RSI, Stochastics, ADX, Bollinger Bands and so on… Luckily, you won’t ever have to worry about any of these indicators. Here’s why… The quest to find the perfect trading indicator There is a big misconception when it comes to learning how to trade. Most new people start by going onto Google to search for the ‘best trading strategy’ or the ‘best trading indicator’ to speed up their success. Everybody wants to find that perfect trading indicator that will help them profit 80% to 100% of the time. Yet, at most, there are only 5% of traders’ out there who are able to make a consistent income with trading. I have two main reasons on this matter, which I’ve gathered since 2003. Reason 1: All indicators are history With local and international markets such as the stock market, Forex and even with crypto-currencies, there are billions of rands traded every day. With the ongoing economic, socio and political events taking place, every transaction from either a company, private individual or even a bot is entirely unique and UNEXPECTED. So which indicator is the best to choose from? Well before you go and do research on each indicator there is to trade with, let me spare you the time and tell you this… Every technical indicator and oscillator out there, is based on one thing. HISTORICAL DATA. When you add an indicator onto a chart, it can only show one of three things which are either the: Current momentum. Current trend direction or the. Demand and supply based on buying and selling volume. Not one indicator has any form of predictive qualities. Even with the dawn of Artificial Intelligence and Quantum Computing, there will most likely never be that one indicator that will be able to predict the future with accuracy and certainty every time. However, let’s say there is that one Quantum Computer that is able to take every news event, internal and external factor into account. The information assembled and collected, will still be based on past data. By now you may be feeling like your life has been a lie with all the marketing fluff out there with the 100% win-rate and get rich quick scams, but I assure you there is one legit way to succeed from trading. Reason 2: Each element is essential It doesn’t take just one trading strategy to bank a consistent income. It doesn’t take just a few rules to follow and, It doesn’t take a whole lot of money to fund your account to make it as a trader. No, in actual fact it takes four equally important elements namely: MARKETS: You need to find the best markets that are out there to trade and when to trade them. METHOD: You need to create or adopt a proven trading strategy that will fit your personality. (Price action with a few patterns is all that's needed to spot probability trades). MONEY: You need to have just a couple of money management rules, to follow every time you take a trade. MIND: You need to find a way to develop trading self-confidence as well as a strong mindset throughout your career. This is where so many different trading companies, publications and even education institutions seem to miss the mark. They either specialise ONLY in psychology, trading analysis or just on money management. Unfortunately, this is one hobby or lifestyle where being an expert in ONE field will not guarantee your success.
JSE:J200Education
by Timonrosso
2