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WARNING! This will reflect on your tradingThe world thrives on drama, gossip and most people just want it to end by the way they think... I can't blame them because most people are struggling to live their lives where they are working from pay check to pay check. Where they are hoping their boss will give them a half day off. Where they are constantly feeding the fat cats of the world and paying taxes from their salaries. But then trading comes along, where you can have some degree of control of your finances and investments. Where you can risk what you wish and play the rules with growing a portfolio,... BUT if you bring in your emotional aggression and tendencies, it will reflect on your trading... Instead, you should work on yourself more. Don't be angry over unnecessary things Don't make a mountain out of a mole hill Don't risk anything you can't afford to lose Don't get angry over a small loss - you are in the trading den to make money NOT to be right Take 10 DEEP breaths in and out before you make any impulsive decisions or take any abrasive action. Focus on change and the whole world, your mind and your trading results will change with you... Let me know if this helps by commenting below or at least liking this post. Trade well, live free, Timon MATI Trader
JSE:J200Education
by Timonrosso
MOST DANGEROUS TRADING TRAIT!Most people talk about Fear and Greed being the barometers to failure... I think there is an underlying trait that is far superior which leads to ultimate account catastrophe. EGO. They just want to be right or they will have a hissy fit. They refuse to take a loss... They refuse to accept that the market is moving against you. They find ways to disagree with the market which gets them committing moe. They move their stop loss away further away - which means they risk more. Rinse and repeat - GONE. Cut out your ego or the markets will cut you out. Simple. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
END Procrastination Today with 7 TipsOne of the biggest issue a trader has is none other than procrastination. • They doubt their trades – so they don’t take them. • They skip a trading day – so they miss opportunities. • They don’t monitor their results on a weekly or bi-monthly basis- so they can’ track their performance. Initially, I thought it was because of a lack of confidence. But to be honest, I think it’s something a lot more transparent. LIFE! You have a life to live, income to earn, food to put on the table, things to do with your family and loved ones and the general duties of life. So it’s all down to priorities at the end of the day. Because my life has been dedicated to trading since 2003, it’s why I don’t procrastinate – take a day off or anything of the sorts. So I’m going to give you some pointers on how to stop procrastination or at least reduce it… TIP #1: CHOOSE YOUR TRADING DAYS If you really don’t have the energy (not the time, everyone has time), then just choose two or three days to trade. And find the best time to locate to your trading. Maybe it’s first thing in the morning when you’re having coffee or breakfast. Maybe it’s when you come home after work and before you get onto the social media world. Maybe it’s an hour before bed or Netflix. Adopt it into your life in a way that it is comfortable and manageable for the future. TIP #2: SET SMALLER TASKS Break larger tasks into smaller, more manageable chunks. This will make it easier to start working on a task and to make progress. Instead of looking at EVERY market in one day, to drive you crazy. Choose a sector market and only focus on that watchlist… E.g. Local stocks one day, Forex another day and international markets another day. TIP #3: TRACK RESULTS ON A SPECIFIC DAY Choose a day in the week, where you’ll jot in your trades that you added, adjusted or closed. Create a schedule and stick to it. Having a structured plan can help you stay on track and avoid getting side-tracked by less important tasks. TIP #4: SET A TIMER If you have only 1 hour to trade, set the timer. You’ll find with a timer, you’ll be more focused determined and less distracted with anything else. TIP #5: REMOVE DISTRACTIONS Stop the distractions from your workspace. This may include turning off notifications on your phone or computer, finding a quiet place to work, or using noise-cancelling headphones. TIP #6: SELF-TALK YOURSELF Use positive self-talk to motivate yourself to do it. Psychology is an important element to your trading. Instead of telling yourself that you can't do something or that it will be too hard, try telling yourself that you are capable and that you can do it. TIP #7: REWARD YOURSELF Reward yourself for making progress of following with your trading actions. This could be as simple as taking a short break or treat yourself to something you enjoy. These are just a few ideas on how you can end your procrastination from your trading endeavours… There will be no change in your life without action, so always keep the prize in mind and you should have all the determination in the world to GO FOR IT. If you enjoyed this feel free to LIKE and follow for more daily tips. Trade well, live free. Timon MATI Trader
Editors' picks
JSE:J200Education
by Timonrosso
19
EXPLAINED: Short Selling in 3 ways and with an exampleWhat is Short Selling? This is where you sell (go short) an underlying market at a high price, anticipate a drop in price where you’ll buy it back at a lower price for a profit. How short selling works… To understand this concept, I’m going to break it down into three explanations. • One line • Step by Step • Visual Explanation #1: One line Short selling is the practice of selling a financial market (such as a share, crypto currency, index etc…) that you don’t own with the intention of buying the same market back later on at a lower price for a profit. Explanation #2: Step-by-Step 1. You sell a number of shares, which you don’t own, at a higher price. NOTE: You borrow the shares from a broker or lender. 2. After time passes, the market then comes down in price. 3. You then decide to buy back the shares and close your position for a profit. NOTE: When you buy the position back, you automatically return the borrowed shares to the broker/lender and pay them a fee. 4. You will pocket the difference between the price from where you sold the shares and the price where you bought them back. The Broker gets the shares back you get the profit – bada bing bada boom – DONE. Let me know what other term you would like explained. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
EXPLAINED DIXIE (US Dollar Currency Index) What, why where, how?The US Dollar has been in the limelight and not in a good way. In fact, he US dollar has not been dimmer since 22 September 2022 where it was trading at 114.42. Currently it’s at 103.90 (9.19%) down… But what does it all mean? Why is the Dixie such a popular index to understand, and trade. You see it in the news every time you turn on Bloomberg and you see it in the publications. So we might as well understand it for the next time they mention the Dixie. IN this short article I’m going to answer the 6 most important questions, to help you understand the Dixie is, how it’s calculated and how to trade it… 1. WHAT IT IS? The U.S. Dollar Index – DIXIE - (USDX) was first intrpduced in March 1973 and is a measure of the value of the U.S. dollar relative to a basket of foreign currencies. 2. HOW IT’S CALCULATED The USDX is calculated by the Federal Reserve Bank of New York and is based on the exchange rates of six major currencies: the euro (EUR) – Accounts for 57.6% - ,Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK), and Swiss franc (CHF) . 3. ECONOMY GAUZE The DIXIE is used as a barometer for the value of the US dollar to base it on the potential strength of weakness of the U.S Economy. 4. TRADED BASED ON The USDX is traded on financial markets, and its value moves based on certain macro aspects such as: Changes in exchange rates, economic conditions, and global market trends. 5. USE Investors and financial institutions uses the USDX is often to hedge against currency risk, as well as to speculate on changes in the value of the U.S. dollar. 6. HIGHER VERSUS LOWER VALUE If the Dixie goes up this means the US Dollar is gaining strength against the other currencies. The more it goes up the more it appreciates which indicates a stronger US dollar – Stronger economy – more confidence in the US dollar. If the Dixie drops, it means the US dollar is getting weaker against the other currencies in the basket for the index. As it drops more, it depreciated which tells us the US dollar is getting weaker which means – a weaker economy and less confidence in the US dollar. If this was interesting let me know in the comments or hit the like button and let me know what else you would like to learn about in bite size information. Trade well, live free. Timon MATI Trader
TVC:DXYEducation
by Timonrosso
BEFORE YOU TRADE - Look - Calculate - RememberI don’t care if you’re new or old to the trading business. This will apply to you, regardless. In this short but vital article, we’ll go through 3 of “Before you do this – You need to do that”. #1: BEFORE YOU TRADE – LOOK Trading is a strategy game. You don’t just thumb suck a trade and guess where the market will head. No, you have your criteria on: • The markets you’ll analyse • The time frames you’ll use • The criteria you’ll follow • The entry, exit and risk levels you’ll apply Before you take a trade, you need to first look and find synergy between your strategy and the market you’re looking at. #2: BEFORE YOU SPEND – CALCULATE Trading is a risk game. You don’t just put in all your money in a trade because it feels good or looks too good to not risk. You are not in the game to be right… You are in the game to play calculated risks with your winners as well as your losers. I have a 2% risk rule per trade, in order to bank a 4% gain. This is the best strategy that works for my 19 year old, 4 step strategy, 62.5% win rate MATI Trader System. Whether the trade looks incredibly attractive and is almost a given, it doesn’t matter. Calculate your risks, follow your rules and calculate before your spend. #3: BEFORE YOU GET EMOTIONAL – REMEMBER Trading is a mind game. It can play with your emotions at times. • A loss can ruin your week. • A win can make you feel like a megalomaniac for a day. • Your birthday can make you think you’ll profit that day. • Your previous loss can cause you to doubt your trading strategy. • Your previous winner can scare you. “You need to remember that the financial markets don’t know you, care for you and remember that trading is a forever business.” Next time when you feel those emotions taking over, just remember that sentence… Did you find this useful, follow for more daily trading tips... Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
1
WARNING! This will reflect on your tradingThe world thrives on drama, gossip and most people just want it to end by the way they think.... I can't blame them because most people are struggling to live their lives where they are working from pay check to pay check. Where they are hoping their boss will give them a half day off. Where they are constantly feeding the fat cats of the world and paying taxes from their salaries. But then trading comes along, where you can have some degree of control of your finances and investments. Where you can risk what you wish and play the rules with growing a portfolio,... BUT if you bring in your emotional aggression and tendencies, it will reflect on your trading... Instead, you should work on yourself more. Don't be angry over unnecessary things Don't make a mountain out of a mole hill Don't risk anything you can't afford to lose Don't get angry over a small loss - you are in the trading den to make money NOT to be right Take 10 DEEP breaths in and out before you make any impulsive decisions or take any abrasive action. Focus on change and the whole world, your mind and your trading results will change with you... Let me know if this helps. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
1
9 SIGNS You're Trading Well! Trading well is a marathon and not a quick race. It doesn’t matter how much money you banked in a week, winners you took or how much money you have in your account. What does matter is one word “Persistence”. And with persistence comes, 10 signs that you’re doing well with trading. Let’s get to them… Sign #1: You have the passion to LEARN how to trade When you learn to trade, it’s not only a strategy game but also a self-introspection journey. You get to understand who you are as a trader in a way that you learn: • What time you wish to trade • What markets you’d like to look at • The instrument you want to buy/sell • The broker that best suits your needs If you have the passion to learn what fits your personality when trading, it’s a good sign you’ll do super… Sign #2: You have a solid daily trading routine There is no right or wrong way to go about your trading. Once again, it’s what you feel comfortable with on a daily or weekly basis. Maybe it is reading MATI Trader first thing in the morning, then going through your watchlist and seeing which trades are lining up. Afterwards you set your trading levels and take your trade. Whatever your trading routine is, make sure you have a checklist to follow. Sign #3: You have strict rules to follow Rules are the only way to find consistent opportunities within the chaos. I have three rules with trading. 1. Never risk more than 2% per trade (no matter the portfolio account). 2. Never risk any money you can’t afford to lose 3. Never hold more than 5 trades at any one time. If you have rules to follow, you’re doing well… Sign #4: You have tunnel vision There are no two traders that are the same. This means, when you know who you are, you’ll know to ONLY follow your rules, strategy and vibe. If someone tries to change your mind, put your blinkers on and remember the proven strategy you KNOW works. Don’t listen to others and don’t care about where other traders are in their career. Sign #5: You have a track record Whether you’re still demo-trading or live-trading, it doesn’t matter. All you need to make sure is that you have an excel sheet or written pad with all of your trades you have taken or backtested. This is will remind you and give you proof of what works and will make you a consistent income during your trading. Sign #6: You have the time to trade You’ll need to choose the time, that suits you best to analyse and trade the markets. It can be first thing in the morning, during your break in the afternoon or even 2am when you wake up and can’t go back to sleep. Sign #7: You can psychologically handle it Trading is mostly mindset. How you deal with your winners, losers and with your trading longevity. If you are prepared to mentally handle everything trading comes with – you’re well on your way to a bright trading future. Sign #8: You have a dream As much as trading is fun during the process, we all have a future idea on where trading will take us. Some want to travel around the world and not have to worry about budgeting. Others want to just spend their time during retirement keeping their brain active and seeing trading as a forever-challenge. Me, I love to trade, teach how to trade and create financial freedom for my future and for generations to come. What is your dream? Sign #9: You have your trading system The game-plan… Do you know where to enter, exit and place your risk levels every time? If so, GOOD. You have a trading system. This is all part of trading well. If you enjoyed this article feel free to LIKE and Follow for more daily trading tips articles. This is information I've gathered since 2003. Trade well, live free. Timon MATI Trader
NASDAQ:NDXEducation
by Timonrosso
12 Car Companies LISTED on Stock Exchanges It’s the era of the electric vehicles. It’s their time to shine and it looks like many car companies are becoming a favourite investment out there for many investors… In this short article, I’m going to highlight some of the many car brands that are listed on the stock exchange. Toyota Motor Corporation (NYSE: TM) Toyota is a Japanese car manufacturer that is listed on the Tokyo Stock Exchange. It is one of the largest and most successful car companies in the world, with a strong reputation for innovation and quality. General Motors Company (NYSE: GM) General Motors (GM) is an American car manufacturer that is listed on the New York Stock Exchange. It is one of the largest car companies in the world, with a portfolio of well-known brands including Chevrolet, Buick, and Cadillac. Volkswagen AG (OTC: VOW3) Volkswagen Group is a German car manufacturer that is listed on the Frankfurt Stock Exchange. It is one of the largest car companies in the world and owns a number of well-known brands including Volkswagen, Audi, Lamborghini and Porsche. Tesla, Inc. (NASDAQ: TSLA) Tesla is an American electric car manufacturer that is listed on the NASDAQ stock exchange. It has disrupted the traditional automotive industry with its focus on electric vehicles and has become one of the most valuable car companies in the world. Ford Motor Company (NYSE: F) Ford is an American car manufacturer that is listed on the New York Stock Exchange. It is one of the oldest and most iconic car companies in the world, with a long history of innovation and a strong portfolio of brands including Ford, Lincoln, and Mercury. Some other companies include: Daimler AG (OTC: DDAIF) BMW AG (OTC: BMWYY) Honda Motor Co., Ltd. (NYSE: HMC) Nissan Motor Co., Ltd. (OTC: NSANY) Subaru Corporation (OTC: FUJHY) Mazda Motor Corporation (OTC: MZDAF) Tata Motors Limited (NYSE: TTM) Can you think of anymore car companies listed on the stock exchange? Let me so I can include them in my watch list… Trade well, live free. Timon MATI Trader
NASDAQ:TSLAEducation
by Timonrosso
7 SIGNS You're Trading Well So, you’re probably wondering how you’re doing as a trader. • Are you rich? • Is your portfolio shooting up? • How many winners did you bank this week? If you think those are the questions to ask – Then YOU’RE WRONG! As I’ve mentioned many times before. Trading well is a marathon and not a quick race. It doesn’t matter how much money you banked in a week, winners you took or how much money you have in your account. What does matter is one word “Persistence”. And with persistence comes, 10 signs that you’re doing well with trading. Let’s get to them… Sign #1: You have the passion to LEARN how to trade When you learn to trade, it’s not only a strategy game but also a self-introspection journey. You get to understand who you are as a trader in a way that you learn: • What time you wish to trade • What markets you’d like to look at • The instrument you want to buy/sell • The broker that best suits your needs If you have the passion to learn what fits your personality when trading, it’s a good sign you’ll do super… Sign #2: You have a solid daily trading routine There is no right or wrong way to go about your trading. Once again, it’s what you feel comfortable with on a daily or weekly basis. Maybe it is reading MATI Trader first thing in the morning, then going through your watchlist and seeing which trades are lining up. Afterwards you set your trading levels and take your trade. Whatever your trading routine is, make sure you have a checklist to follow. Sign #3: You have strict rules to follow Rules are the only way to find consistent opportunities within the chaos. I have three rules with trading. 1. Never risk more than 2% per trade (no matter the portfolio account). 2. Never risk any money you can’t afford to lose 3. Never hold more than 5 trades at any one time. If you have rules to follow, you’re doing well… Sign #4: You have tunnel vision There are no two traders that are the same. This means, when you know who you are, you’ll know to ONLY follow your rules, strategy and vibe. If someone tries to change your mind, put your blinkers on and remember the proven strategy you KNOW works. Don’t listen to others and don’t care about where other traders are in their career. Sign #5: You have a track record Whether you’re still demo-trading or live-trading, it doesn’t matter. All you need to make sure is that you have an excel sheet or written pad with all of your trades you have taken or backtested. This is will remind you and give you proof of what works and will make you a consistent income during your trading. Sign #6: You have the time to trade You’ll need to choose the time, that suits you best to analyse and trade the markets. It can be first thing in the morning, during your break in the afternoon or even 2am when you wake up and can’t go back to sleep. Sign #7: You can psychologically handle it Trading is mostly mindset. How you deal with your winners, losers and with your trading longevity. If you are prepared to mentally handle everything trading comes with – you’re well on your way to a bright trading future. This is all part of trading well. If you enjoyed this article feel free to LIKE and Follow for more daily trading tips articles. This is information I've gathered since 2003. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
1
REVEALED: THE DOW JONES 30 What, Facts and Make-upAll index traders trade it... But do we know anything about The Dow Jones? I'm going to break down what it is, some interesting facts about the Index and what companies makes up the index. Save it because it's all you need for the Dow Jones. WHAT IS THE DOW JONES? The Dow Jones 30, or DJIA or "The Dow" is a stock market index that reflects the performance of 30 large, publicly traded companies listed on the New York Stock Exchange and the NASDAQ. INTERESTING FACTS! 1. The index was created by Charles Dow, editor of the Wall Street Journal, in 1896. 2. The DJIA is calculated by taking the sum of the prices of the stocks of the 30 companies included in the index, and then dividing that sum by a divisor, which is adjusted periodically to account for stock splits and other corporate actions. 3. The DJIA is considered a "price-weighted" index, meaning that the stocks with higher prices have a greater impact on the index's value. 4. The DJIA is one of the oldest and most widely followed stock market indices in the world, and it is often used as a barometer of the overall performance of the U.S. stock market. The DJIA is composed of a mix of blue-chip and cyclical stocks, which means that it tends to be more stable than some other stock market indices, but it can also be affected by economic and market cycles. The DJIA is often abbreviated as "the Dow" and is quoted in points, rather than dollars. For example, a DJIA value of 32,920 means that the index is at 32,920 points. WHAT IS MADE UP OF THE DOW JONES? 3M American Express Apple Boeing Caterpillar Chevron Cisco Systems The Coca-Cola Company DuPont Exxon Mobil Goldman Sachs The Home Depot IBM Intel Johnson & Johnson JPMorgan Chase McDonald's Merck Microsoft Nike Pfizer Procter & Gamble Travelers UnitedHealth Group United Technologies Verizon Communications Visa Walmart The Walt Disney Company Exxon Mobil What Index would you like to know about next? I'll write about it and post it here. Trade well, live free. Timon MATI Trader
DJ:DJIEducation
by Timonrosso
EXPLAINED: Gearing and how it worksThere 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. If you want any other technical trading or fundamental term explained, please comment below. I'm happy to help. Trade well, live free Timon MATI Trader Feel free to follow my socials below.
JSE:J200Education
by Timonrosso
P:E Ratio EXPLAINED Fully with examplesWhat is the PE ratio? The price-to-earnings ratio or P/E is a financial ratio used to evaluate a company’s share. How is it calculated? Current market’s price / Earnings Per Share (EPS). Share price / EPS What does it show you? It shows you whether a company’s stock (based on its earnings) is: Overvalued or Undervalued. Also, it gives an indication on how many years it will take for the earnings of the company to equal to the share price. What does a HIGH PE show • A very high PE could mean the share may be overvalued. • Investors are paying more for each rand or dollar of earnings. • It will take longer for the investors to recoup their investments. What does a LOW PE show • Share may be undervalued. • This could signal a buying signal for investors. • Or it could signal danger as to why investors aren’t buying the share price up. What are the advantages of a PE? 1. Gives an indication on how long it will take to make up for the investment. 2. Can signal buying opportunities in some shares. 3. Can give you an example of what one company’s PE ratio is in comparison to other shares in its sector. What are the disadvantages of a PE? 1. Does not take into account of the company’s growth or future earnings potentials (You’ll need the PEG ratio). 2. Doesn’t include the company’s dividends 3. Doesn’t take into account of the other financial indicators. Note: You need to use other ratios and financial indicators to base a decision. PE isn’t good enough. The PEG Ratio is more reliable as it takes into account the growth rate of the PE over the years. Example of an Overvalued PE ratio: Company TIMX Share price R200 EPS (Earnings Per Share): R10 P:E Ratio = 20 (R200 / R10) This means investors are willing to pay R20 for every R1 of the company’s earnings. Or they are willing to pay 20 times more than what the EPS is. This is unstable as what the company is priced at versus what the investors have priced the company at could result in a bubble. And so it can get to the point where investors start selling their stock which will cause a drop in price. Also, the P:E ratio states it will take 20 years for the investors to get their money’s worth. However, if the prospects are good and the company is showing strong future growth, this could be a reason why investors are paying a PREMIUM for their stock. Example of an Undervalued PE ratio: Company TIMX Share price R100 EPS (Earnings over the share price): R25 P:E Ratio = 4 (R100 / R25) This means investors are not willing to pay a higher price for the company’s earning. In this case, they are only paying 8 times more than what the EPS is. This could indicate that the company is going through financial difficulties and is NOT expected to grow. BIG BUT! However, it’s not easy to calculate what a HIGH or LOW PE ratio is for just any company. This is because you need to compare it to their competitors and peers.
JSE:J200Education
by Timonrosso
Compounding Trading EXPLAINED with an exampleListen up. If you want to grow your portfolio exponentially, you’ll need to understand this concept. It’s called ‘compounding’. In short, Compounding is a strategy where you allocate your money with your original and current portfolio in order to reinvest it and grow it into an even larger portfolio. Let’s cut to the chase with an example. Meet Jack and Jill. Jack and Jill both deposit R100,000 into their trading accounts and they decide to follow each other’s trades exactly. At the end of the first year, their portfolio performances were identical. As they enter their second trading year, Jack decides to do one thing different to Jill. He decides to withdraw all his profits so that he can enjoy a lavish holiday. Jill on the other hand, decides to reinvest her profits. This way, in the next year, she’ll be able to grow her account even more. They trade this way for the next 10 years. Let’s compare how their portfolios differ. Simple trading versus Compounding trading in action It is clear that Jill is a lot wealthier than Jack where, she has been able to grow her account from R100,000 up to R2,164,657 in just 10 years. Jack on the other hand is right back to where he started, but with 10 memorable holidays. Which position would you like to be in? Every year, Jack takes on the simple interest trading approach. This is where he continues to earn returns on his original portfolio value only. At the end of each year, he takes out the R36,000 in profits, that he earned, and uses the money to go on a holiday. Even after 10 years, Jack continues to bank a fixed R36,000 each year leaving his trading portfolio back to his starting account of just R100,000. Jill on the other hand, takes the compounding interest trading approach. This is where she continues to re-invest her earnings into her portfolio each year, in order to grow it even larger than the previous year. After 10 years of trading, Jill’s R2 million trading account continues to snowball and compound each year. The science of compounding is an extremely effective wealth building strategy. Do you have a trading or investing question, let me know and I'll be happy to help where I can. Trade well, live free. Timon Financial trader since 2003
JSE:J200Education
by Timonrosso
STOP being a Revenge Loser in 3 WaysSo you’re down $200 for the day… Your poor heart strings have been pulled and your ego has been shot down… In 23 minutes, the stock market will close, which will leave you devastated with a losing trade! You decide to pump up your chest, make an animal grunt sound and try to make up for this loss… And so, you take the ‘not-so-perfect trade’, because the market now ‘owes you one’. You lose again… This time it’s not $200, it’s a $450 knock. Well done! You’ve just fallen into the most common Revenge-Trading-Trap… And you’ve just become what I call a “Revenge-Loser”… Let’s make sure that never happens again, shall we? Here are three solutions to help... Solution #1: Let bygones be bygones Trade losses come with the territory… Take them, own them but make sure they are not so big that you feel the need to cry about it… Drop your risk from 5% down to 2% or even 1% per trade… Until you get to the point, where you can easily just let your losses slide. Solution #2: Grab a cold one This is my favourite… When you feel the need to jump on the next trade, without a good setup – the next tip is guaranteed to help. Step away from your computer and grab a drink, watch Netflix go make Ice-cream… Whatever you need to do, to stop trading for the day – DO IT… The markets will be here for you tomorrow and for whenever you’re ready to trade again… Solution #3: Follow a successful trader If you feel you: DON’T want to struggle taking a trade. DON’T have a trustworthy trading strategy DON’T have the right experience to know when to buy or sell DON’T have the time-less money management rules to execute your trades well… It’s for these reasons and more, I’ve decided to send my personal BUY and SELL weekly trade alerts, tips, videos and market updates for you… When I send out a trade, you know what I’m buying or selling for the day, week and month… And when I profit you profit… It’s really a win-win… If you have any trading questions I'm here to help. I've been in the markets since 2003. Trade well, live free. Timon MATI Trader
NASDAQ:NDXEducation
by Timonrosso
1
Steinhoff hit my price target and I am very worried for it now!We saw a major drop of 44% with Steinhoff to just 90cents and Its market capitalisation lost as much as R3bn in the fall from R6.9b yesterday Steinhoff is in troubled waters with a debt of R185 billion. There is a deal where if Shareholders will agree, they will end up owning 20% of the company. The Creditors will own the rest. The problem is the company will no longer be listed on the stock exchange. From my experience when a company goes from listed to private it means a few things. 1. Liquidity issues Volume will be low where you might not be able to exit a position with a rightful buyer or sell 2. lack of transparency This leads to uncertainty for the business as shares holders won't have the transparent information like they would with a public company. 3. Valuation With a company listed privately, this can lead to investors pricing in the business rather than shareholders. This can result in slower performance in the price of the share. 4. Market perception The fact that a company has been delisted can be seen as a negative development by some investors, who may view it as a sign of financial distress or poor management. This can affect the market's perception of the company and its shares, which can in turn affect the value of your investment. I would not touch Steinhoff with even my pocket money for sweets at this stage. Trade well, live free. Timon MATI Trader
SShort
by Timonrosso
3
6 Reasons why the gold price will drop with interest rate hikes The FOMC announced another 50bps (0.50%) Interest Rate increase to 4.50% which has lead to short term downside for gold as an initial reaction. The question for many remains. Why does gold drop when interest rates rise? There are a number of reasons, but here are the top 5… #1: Investors look elsewhere Higher interest rates can make other investments, such as fixed investment assets and bonds, more attractive to investors. Gold investors will then sell their gold holdings and take advantage of higher interest rate yielding assets. This can lead to investors moving their money out of gold, which can lead to a drop in price. #2: Stronger U.S Dollar A higher U.S dollar can lead to gold being more expensive for investors who use other currencies to buy it. This can lead to a drop in demand for gold, which brings the price lower. #3: Higher borrowing costs When interest rates rise, this increases the costs of borrowing for business and consumers. They now need to pay more to borrow money to fund their operations. This can hamper the economic activity and drop the demand for buying stocks, precious metals and other investments. #4: Higher yields on gold-mining companies bonds Fixed investment gold bonds may seem more attractive than holding and investing in gold itself. This leads to a drop in gold mining stocks which essentially helps with the drop in gold. #5: More supply less demand With the factors I mentioned above, with investors leaving gold this increases the supply of the metal and decreases the demand. This leads to a drop in the gold price. #6: Uncertainty floods the markets When interest rates go up, this leads to uncertainty in financial markets (where gold is no exception). Investors feel the uncertainty and become worried for the economy. This can lead to a decrease in demand for gold and a drop in its price. These are all speculations in theory with why the gold price may drop with an increase in interest rates. We notice that the markets don’t always play according… Since the May 2022 Gold has moved in a sideways consolidation pattern. And this means, we can see the price continue in the range. Until we actually see a break up or down, the analysis in the medium term is sideways. We’ll be watching this carefully. Follow for more trading and fundamentals tips and analyses from the info I've learnt over the last 20 years as a trader. Trade well, live free. Timon MATI Trader Higher interest rates can also lead to higher yields on gold-mining companies' bonds, which can make these bonds more attractive to investors. This can lead to a decrease in demand for gold-mining stocks and a drop in the price of gold. Higher interest rates can also increase the opportunity cost of holding gold, as the metal does not generate any income or interest. This can make investors less likely to hold onto gold as a long-term investment. Gold is often seen as a hedge against inflation, and higher interest rates can signal that the central bank is trying to keep inflation in check. This can reduce the perceived need for gold as a hedge and lead to a drop in its price.
COMEX:GC1!Education
by Timonrosso
1
5 Reasons why Interest Rate hikes causes markets to fall - FOMC We had the CPI come our better than expected (7.1%) versus 7.3% expected. This means finally inflation is decelerating at an accelerating rate which is good for the markets. However, today with the FOMC they are expecting a 50 bps hike or 0.5% rise. Just a reminder in simple terms Interest rates is the amount of money (expressed as a %) that a lender charges a borrower for the use of their money. The interest rate is the percentage of the money you borrowed that you have to pay back as a fee. Now there are a few reasons why interest rate hikes can cause global markets to fall including. 1. Better places to invest in Investors take their money out of stocks and financial assets and into banks where the potential return is higher. 2. Strong economy When interest rates rise it tells is the economy is improving and getting stronger. This can lead to higher inflation expectations. 3. Expensive for businesses When interest rates rise, it makes the borrowing more expensive for businesses. This is based on the borrowing of buildings, assets and equipment. They now need to pay a higher rate to finance their debt. 4. Better for bonds and fixed investments Again, investors want a better ROI. They will take money out of the financial markets and more into bonds and other fixed-income investments. 5. Higher US Dollar Higher Interest rates often lead to a stronger dollar. U.S Exports become less competitive which hurts many multi-national companies. and less attractive for U.S stocks. Hope that helps. Save this so you have an idea on how Interest Rates move the markets. Follow for more daily tips. Thanks for the support. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
Future of Customer Services with Trading the marketsThe Future of Customer Services with Trading The new era of trading all depends on two things… The experience for trading and the superior customer service, that comes along with it… Consumers depend on it and companies reap the rewards by adapting to excellent customer service to prevent them from failing. In this article, we’ll focus on 7 trends that will shape customer service in the future. This applies for not only trading but with most businesses. Let’s get to them… Trend #1: Social Media Live Chat Human assistants will help answer their customer questions, with a live online chat software or by downloading an application. Think of Skype, Zoom, Facebook or via their personal website. As more people adapt to online communication, the more companies will utilise these opportunities. After all, it’s all about meeting the customers where they are most likely to be. WITH TRADING – There are already live online communication options where human operators can help with trading platform, charting, business features and offers. Trend #2: Virtual Chatbot A virtual chatbot is a pre-programmed response with an artificial intelligence software. You most likely know them as virtual assistants. This way is a cheaper, faster and more consistent approach to help answer customers questions without the need of a human operator. With virtual chatbots there’ll be no restricted or waiting times. Also with machine learning, means the bots will get better, they’ll be more researched and will provide better answers over time. WITH TRADING – You’ll be able to ask for financial markets information, prices, charts, how to guides and trading platform queries. Trend #3: RIP Phone Calls & Faxes Companies will strive to cut costs and cut out old fashion ways. This includes mobile-data related phone calls taking a back seat as well fax machines. WITH TRADING – You’ll notice that with most global Forex and trading companies, they have taken out the options of phoning and faxing them. This shouldn’t worry you as they are adapting to the new ways of trading. Trend #4: 24-Hour Support With Apps Instead of calling or messaging companies via mobile communication, companies are adapting to more text and voice messaging apps. I’m talking about WhatsApp and Facetime. It’s cheaper, faster and more accessible from anywhere in the world. This will bring about 24 hour support, for their customers. WITH TRADING – I’m sure you’ll be able to send a quick message to your broker via WhatsApp or another app to place or close a trade or facilitate other transactions. Trend #5: Video Email Email has been the most widely used tool for customer service. In the future, we’ll be taken to the next level where email will allow for video emails. This way we’ll have a higher level of engagement and with a more personal and natural touch. WITH TRADING – You’ll be able to ask your trading related query with an illustration rather than explaining via text. And when you receive your answer, it will be shown with an easy to understand and visualise demo explanation. Trend #6: Remote Working & Flexible Times COVID-19 was the catalyst that helped push the remote working environment for employees. As customer service and contact agents are confined more to their homes, they will be working with more flexible times. WITH TRADING – Instead of an employee having to work in an office setting, they will be more flexible with their times. Eventually, we’ll see questions answered by them at all hours of the day. Trend #7: Multi-language Support Customers are connecting with more companies, located all over the world. It is critical to offer customer service support in multiple languages. The more languages are offered, the bigger the reach for potential customers. WITH TRADING – Forex and crypto-currency is a global phenomenon, taking over the world. It is inevitable for these kinds of companies to offer their services in different languages. Final words With us being able to expose, report and send our reviews about our experiences, means one thing… Businesses will continue to strive to serve and improve their customer support and services. And that’s why, it is and should always be a priority for companies to improve. Is customer services improving with trading? Let me know in the comments... Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
9 Top Trading Movies of All time!If one of your goals is to learn how to trade well and profitably during the festive season... Then you’ve definitely seen the opportunity within the calm. Why not enjoy a trading movie marathon within the next couple of weeks? In this TradingView article I’m going to recommend 9 of the top trading movies of all time, which you can enjoy… Movie #1: Wolf of Wall Street In this thrilling and erotic movie you’ll learn how Jordan Belfort went from being an entry-job broker into a man who made a fortune of over $200 million dollars. He achieved this through a widespread of corruption on Wall Street and in the corporate banking world. Movie #2: Rogue Trader Find out how Nick Leeson thrived from the Asian market to make risky trades and break the oldest bank in England. Movie #3: Margin call Another movie which shows the falling of a Lehman Brothers-like bank during the financial crash and how they do everything they can to avoid becoming bankrupt… The movie is filled with capitalism, greed and financial fraud. Movie #4: Boiler Room In this action packed movie you’ll see how 20 millionaires were made overnight through illegal, greed & corruption stock market practices. Movie #5: Wall Street 1987 In this movie you’ll see a money and greed driven stock broker who will do anything to get rich, including practising insider trading with the help of his hero (Gordan Gekko). Movie #6: The Big Short Another movie with smart but arrogant pricks who were able to make millions of dollars by betting against the entire housing market… Movie #7: Arbitrage In this movie you’ll see one crisis after another as a troubled hedge fund giant is desperate to sell his trading empire who eventually turns to an unlikely person for help. Movie #8: Inside Job In this movie you’ll see how unaccounted and reckless actions of Wall Street lead to the global financial crash of 2008. Movie #9: Wallstreet 2: Money Never Sleeps In this movie you’ll see how unaccounted and reckless actions of Wall Street lead to the global financial crash of 2008. Which one is your favourite and can you think of anymore you'd add to the list? Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
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
5 Questions to Ask before you take your next TradeThis is a reference guide with five questions you need to ask, the next time a trade lines up and you need to take a trade. Ask and answer these questions out loudly to help you execute your trade easily the next time. Question 1: Do I have a strategy or plan? First, you need make sure you have a proven and profitable strategy. Or else how else will you take a trade? Whether you’re following: • Your own proven trading strategy • My 20 year highly successful MATI Trader System • The 9 year popular Red Hot Storm Trader service You first need to establish you have a strategy and system to follow each time. Once you have one of the above, move onto the next question. Question 2: Has a trade lined up? Next, you’ll need to know if a trade has lined up according to a proven and tested trading strategy. Whether your trading system is a swing, indicator, mean reversion, Gartley, moving average, volume or a price action system like the MATI Trader System. you'll need to have the green light to know when a trade has lined up and whether it’s ready for the go. Question 3: Do I know where to place my trading levels? Once a trade has lined up, you'll need to know or calculate exactly where to enter, place your entry, stop loss (for risk) and take profit (for reward) levels. These three levels are essential for entering your trade. This way you'll have a systematic approach with every trading position you take. Question 4: Do I know how much to put into my trade? Next is position sizing. Trading is one big risk to reward game. You'll need to choose an exact percentage of your portfolio that you're willing to risk to gain with each trade. With high probability trades, I never risk more than 2% of my portfolio. With medium probability trades, I drop that risk to 1.5% of my portfolio per trade. At this point, you also need to know how many CFDs you’ll need to buy/sell to make sure your risk is low. Question 5: Am I ready to press the button? Finally, you'll need to do final checks. This is where you’ll confirm with the strategy, check all your trading price levels and position sizes to confirm the that you’re ready to push the button to get you into your trade. Once all is ready, you just need to do just one more thing. Push that BUY or SELL button. Those are the only questions you'll ever need to enter a trade. Unless I'm wrong, let me know what other question is missing from the list. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
1
3 Trading Lessons from the Wolf Of WallstreetIn short, we learn how Jordan Belfort made a fortune selling Penny Stocks and top blue-chip stocks. He was also able to turn from an entry-job broker into a man who made over $200 million dollars through widespread corruption on Wall Street and in the corporate banking world. Spoiler Alert – It ended with Jordan showing his path to redemption through motivational speaking and teaching people how to sell through his programme called “The Straight Line System”. And now Jordan charges over $100,000, to give advice to top companies and high net worth individuals. While I was watching this legend of a movie, it reminded me of a live event of his I attended. It was on 2 March 2014, where he taught us marketing, entrepreneurship and how to attract & sell products to an audience from A to B. As he was explaining his approach, it caught my attention and taught me a few timeless principles with trading on the financial markets. Here are the three top trading lessons I learnt from the ‘Wolf Of Wall Street’. Lesson #1: MUST Jordan Belfort says… “Winners use words that say “Must” and “Will”. His three common tenets to his ‘Straight Line system’ are: 1. We MUST control the sale and stay within the boundaries of the ‘Straight Line System’. 2. We MUST establish an instant rapport. 3. We MUST use that rapport to gather intelligence. It’s all about commitment… And that’s the big mistake I see most traders make. They have the strategy, the plan and the steps to enter their trades and yet, when all is lined up, they procrastinate. They use words like “should”, “could” and “would”. “I SHOULD get into the trade, but I think the news is going to come out with worse than expected results.” “I COULD get into the trade, but it’s my birthday and I don’t want to lose money today.” “I WOULD get into the trade, but I feel it’s not going to work out.” They continue to hesitate and make excuses to delay the most important actions at the right time. If you want to make it in this game and become a winning trader, you got to follow your strategy and do what needs to be done when you’re supposed to. If you don’t COMMIT, you’ll never show your full potential. Throw out the word “should” and day the following: “I MUST do what needs to be done and I WILL do it as soon as I need to.” Lesson #2: Figure of authority When Jordan Belfort started the company Stratton Oakmont, he became successful in a short amount of time. It wasn’t just the name. It wasn’t just the skills. And it wasn’t just his team… No, this is because he used his winning formula and executed his plan with pure confidence… When I attended Jordan’s event, he pretty much summed up three points that helped him follow through with his ideas and strategies every time. 1. Be enthusiastic as hell 2. Sharp as a tack 3. Be an expert Trading is all about execution with confidence. Whether you’re following your own strategy – You run the show. You have to show your ‘enthusiasm’ with passion and commitment. You have to be ‘sharp as a tack’ as you are the one who needs to be unbiased and find the trades that line up accordingly. You have to show ‘figure of authority’ because you’re the boss and the one who makes the calls… Lesson #3: The first four seconds Jordan says, you get a mere four seconds to influence your prospects decision about you and your product or service. If you possess the qualities where you’re ‘sharp’, ‘enthusiastic’ and an ‘expert’ – next is the execution. You only have four seconds to execute your plan. Any longer and the excuses and procrastination will start to creep up again… When I see one of my five patterns line up and establish on a financial market, I start setting up the trade IMMEDIATELY. I don’t look at the news, I don’t ask for a second opinion and I certainly don’t find reasons to not take the trade. I give it four seconds, and go straight to the risk tool to calculate my stop loss and take profit levels. AND I EXECUTE! If you enjoyed this article and would like to see more follow and LIKE the article, so I know I'm in the right direction to what you wish to learn. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
1