Educational and learning materialTechnical AnalysisTrader insights

Investor Education Series – Technical Analysis: Reversal Patterns – Double Tops and Bottoms

“Two tops that approximately the same price level” is only half the explanation.  Prices must decline below and close below the low point established between the two tops (the middle reversal point) before a double top has been activated.  In a double bottom, prices must close above thehigh pointin between the two bottoms to establish

Educational and learning materialTechnical AnalysisTrader insightsUncategorized

Investor Education Series – Technical Analysis: Reversal Patterns – Head & Shoulders

Technical analysis patterns can be deivided into two types, reversal and continuation patterns. Reversal patterns indicate that the primary trend is likely to change direction, from an up trend to a down trend or vice versa. Continuation patterns indicate a trend is likely to continue, but the pattern gives valuable measuring objective.  Head & Shoulders

Educational and learning materialTechnical AnalysisTrader insights

Investor Education Series: Introduction to Technical Analysis

Technical analysis is basically the study of prices to make better investments, with charts being the primary tool. (Technical Analysis from A to Z – Steven B Achelis). The roots stem from the Dow Theory developed by Charles Dow in the early 1900s. Technical analysis is the process of analysing a share’s historical prices to

Educational and learning material

Investor Education Series: Using P/E Ratios to Evaluate Shares or Markets

P/E ratios are used extensively as a quick evaluation tool. It is probably the most used tool to value shares or markets as cheap or expensive. When analysts refer to a R100 share as cheaper that a R10 share on TV, what they mean is that the P/E ratio is lower, not the price of

Educational and learning materialSA markets and economy

Investor Education Series: Evaluating the market – The International Economy

Evaluating the market – The International Economy South Africa has a very open economy and is therefore affected by global events. Open economy means that imports and exports constitute a large percentage of our GDP. The equity market is particularly sensitive to global events because of the effect on our currency and economy. Global Economic

Educational and learning material

The story of TSO – Trading Shares Online

Meet Tso Radebe, 35 years old and one of the smart, young executives. Tso was promoted to senior manager 3 years ago and his latest bonus left him with a handsome amount to invest. He always took a keen interest in the economy and stockmarket. He studied the Learning Centre on Sanlam iTrade as well

Educational and learning material

Evaluating the Market – The Domestic Economy

A brief overview of those indicators that regularly influence the JSE Analysing economic indicators can help investors to evaluate the general equity market trend better as well as to identify the best sectors to invest in. Here are some of the most important indicators we see regularly and the likely market reaction they provoke: Evaluating

US markets and economy

Obama’s win and the Fiscal Cliff tug-of-war!

What exactly is the Fiscal Cliff? In late February 2012, Ben Bernanke, chairman of the U.S. Federal Reserve, was the first person to use the term “fiscal cliff” for this crisis. He described “a massive fiscal cliff of large spending cuts and tax increases” on January 1, 2013. During a lame duck session in December 2010,

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Are Equities now more risky than Bonds?

Since the onset of the financial crisis in 2008, investors became more afraid of the return “of” their money than the return “on” their money. They flocked in droves out of equities into the safe havens of cash and bonds, mostly US Treasury Bonds. Graph 1 below shows the cumulative net inflows into Bonds exceeded