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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
3 Sins of a Revenge Trader!Listen, there are only two types of market environments… FAVOURABLE – Where the price movements yield high probability trade setups… UNFAVOURABLE – Where the movements in the market do NOT offer high profitable trade setups… For example… With my breakout MATI Trader System, I need a market that has broken out of a sideways range in order to ride and profit from it… If the market stays in the sideways range, and I want to revenge trade… Whether I buy or sell, I will LOSE every time… That’s why you need to remove the emotions and personal opinions from your analysis COMPLETELY. The markets have no idea who we are and they don’t care whether we won or lost… WAKE UP! There is no catch-up If that revenge is flowing through every inch of your body, and you think you can play catch up – WATCH OUT. Most revenge losers, will just try to reverse their trading positions and swing the other way… This is JUST as dangerous for your portfolio… You’re committing three sins when you try to revenge trade… SIN #1: You’re going against your proven trading strategy You’re tempted to trade on impulse rather than following your logical and winning trading system. SIN #2: You’re over-trading This is when you take more trades, to try to feel better about your loss you made… SIN #3: You’re trying to play catch-up This is where you’ll take try to make up for your losses, by just taking trades by chance You’ll need to stop the revenge trading before it becomes a habit… Trade well, live free, Timon MATI Trader PS: Next article I'll share my solutions to Revenge Trading
JSE:J200Education
by Timonrosso
4 Problems when you Hold a Delisted ShareAs we are expecting Steinhoff to delist soon. What if you continue holding shares in the company? 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. Do you have a fundamental analysis question? Let me know in the comments and I'll answer in simple terms. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
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
What a Leopard can teach you about Successful trading I’m from South Africa. I’ve observed the movements and ways of life of wildlife at different game reserves, resorts and zoos. Penwarm, Kruger National Park, Londolozi and Sabi Sand Game Reserve to name a few. And I’ve seen how leopards work when they catch their prey. This methodology is very similar to how we as trader should act in the financial markets. They lurk behind the bushes in a crouch position. They can wait all day for just the right moment to pounce on its prey and bring the hunt back to its family. Even though they know they can outrun their prey, they still wait for the perfect moment to pounce. Either they’ll wait for the animal in a vulnerable position, injured or the perfect time where they will have a higher probability of catching it.. Patience my friend. That’s the most important element to grow your portfolio. You don’t make money taking a trade. You make profits while holding, waiting and letting the market play out. Here are five reasons why Patience is key for your trading success. #1: Stops you from making impulsive decisions Once you’re in your trade, holding and leaving it alone can help you avoid making impulsive decisions that are based on emotions rather than careful analysis. #2: Helps you spot high probability trades You need to have the patience to wait for the right opportunities to arise, rather than jumping into a trade just because you're feeling anxious. #3: Hold onto winners Trading is NOT about banking small profits. Because you do that and your losses will outweigh your winners. Your Risk to Reward should ALWAYS be above 1.5 at the minimum. This way you’ll hold onto your positions for longer periods of time, which can increase the potential for profits. #4: Takes away fixation When you enter into a trade, you may feel the instinct to watch it and observe ALL day. This will spark up your cortisol levels and will distract you from your higher priorities you have in a day. Once you’ve taken the trade, leave it alone to do its thing. You have your winning trading strategy in place. #5: Wait for the prey Like a leopard, successful traders need to be patient and wait for the right opportunities to arise, rather than acting impulsively or making rash decisions. This is why having a clear and proven plan can also teach us the importance of running it which is essential for success in the financial markets… If you enjoyed this article follow for more Daily tips. I enjoy sharing information I've gained since 2003. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
1
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
5 Laws of Trading SuccessTo trade successfully in the financial markets, it's important to consider five key factors: The markets you choose to trade in. The method you use to enter and exit trades The money you use for risk management The mind-set you bring to the process. The miscellaneous rules and tools you use to increase your win rate and manage your drawdowns. MARKETS First, when it comes to the markets you choose to trade in, it's important to select ones that align with your knowledge, skills, and interests. This will help you make informed decisions and trade with confidence. METHODS Second, when it comes to methods, it's important to have a well-defined strategy in place for when to enter and exit trades. This can include using technical analysis to identify trends and patterns, or fundamental analysis to assess the underlying health of a company or economy. MONEY Third, when it comes to money, it's important to have a risk management strategy in place to protect your capital. This can include setting stop-loss orders to limit potential losses, or using position sizing to manage the amount of risk you take on per trade. MIND Finally, when it comes to the mind-set you bring to trading, it's important to maintain a sense of confidence and discipline. This can help you stay focused and make sound decisions, even when faced with volatility or uncertainty in the markets. Overall, trading successfully in the financial markets requires a combination of selecting the right markets, using effective methods, managing money wisely, and maintaining the right mind-set. MISCELLANEOUS These are the extra tips, rules and tools you use to improve your trading strategy’s win rate, lower the drawdown and find way to optimise your system’s success. From having a time stop loss, ideas to adjust your stop loss, when NOT to trade, when trades are low, medium and high probability. This is what gives you the extra edge in the markets… If there another Law I’m missing? These are just the 5 I’ve gathered over the last 20 years as a financial trader and strategist. Trade well, live free. Timon Rossolimos MATI Trader
JSE:J200Education
by Timonrosso
10 Steps to Start Trading WellTo start anything in life, no matter what it is or how long it may seem, you need to take the first step. With trading it’s the same, with one little difference. You have the opportunity to learn the costly mistakes, tips and the strategies that have worked for other successful traders. This way you can, take the shortcut to kick start your trading career, make it easier and more enjoyable. Here are ten quick steps you can take to start your trading on the right path. STEP 1: Choose the market/s you’d like to trade (Shares, Forex, Commodities, Indices or Crypto-currencies). STEP 2: Choose a broker or market maker you’ll trade with (Make sure they offer CFDs or Spread Betting trading). STEP 3: Learn how the trading and charting platform works (Call your broker who’ll be happy to help with the above first steps). STEP 4: Make sure you have a proven and a profitable trading strategy (Every strategy needs to have its own entry, exit levels and risk management rules). STEP 5: Back-test your trading strategy (Back test 20 trades and then forward test 20 trades on your paper account). STEP 6: Deposit money into account (You can start trading with less than R1,000 to test the markets in real-time). STEP 7: Take every trade according to the strategy (This way you can develop your track record). STEP 8: Track your trading performance to ensure your portfolio is on the up (Win rate, average winner, average loser, no. of winners, losers and other metrics). STEP 9: Read more trading books and watch YouTube videos to learn extra tips (Each tip can help boost your winners, cut losers and increase your win rate). STEP 10: Keep your head in the game (You’ll need passion, integration and determination to maintain your trading career). It’s your turn Print and laminate these steps, so you know how to start trading – the right way. Trade well, live free. Timon MATI Trader
NASDAQ:NDXEducation
by Timonrosso
1
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
HOW BLOCKCHAIN WORKS - EASY POEMBlockchain, oh so grand, A digital ledger in demand, Decentralized and secure, like a band A new way to assure and keep the bond. Transactions are fair, And free from despair, A chain of blocks, Connecting folks, All across the land, Blockchain, oh so grand. This poem describes blockchain as a decentralized, secure digital ledger that is used to manage transactions. It explains that the technology uses a chain of blocks to connect people and ensure that transactions are fair and transparent.
Education
by Timonrosso
How Bollinger Bands work and their best parametersJust a reminder... A Bollinger Band resembles a moving cylinder with three lines. A top, middle and bottom line. These three lines are plotted on any chart and you’ll see the price of the markets moving in-between these levels. When the price crossed above the middle line, the trend is up. When price moves and stays below the middle line, the trend is down. There are three parts to the Bollinger Bands. Upper, Middle and Lower Bollinger Band. Here are my parameters… The length (20) , shows you the Moving Average of the Middle Bollinger Band. Which in this case is 20 MA and is shown in the chart as the orange line… The Source tells us we are using closing prices in the chart… That means, when the JSE All Share Index closes for the day – that is the closing price that will be used for the BB. StdDev is 2… Bollinger Bands are envelopes that base a Standard Deviation above and below a simple moving average of the price. Because the distance of the bands is based on standard deviation, that’s why we are able to see a symmetrical envelope around the price… Most Bollinger Bands parameters are set to 20MA and 2 Standard Deviations on most charting platforms. But now you know what to set it to, to maximise your usage... If you have any questions about indicators feel free to ask. I've been in the markets since 2003 and enjoy sharing information... Trade well, live free. Timon MATI Trader
TVC:SA40Education
by Timonrosso
3
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