Trading is a skill that you perfect (well… not really, but we keep trying) over the years and it’s great to know that you’re not really alone in the journey – we are here to help you! It’s in this spirit that we provide you with regular #tradingterminology lessons through our social media platforms, explaining
In technical analysis, Head & Shoulder (H & S) patterns are usually quite reliable reversal patterns. Fortunately they do sometimes fail. We did not warn anybody when the neckline was broken on the 7th of July. The target for the H & S was for another 8% drop to 46,400. However, we felt that the
Despite crippling strikes, Zuma election victory and ratings downgrades, the JSE keeps on powering along at some pace. Since 24 June 2013 the JSE is up a whopping 37% excluding dividends which could add another 3%. In this time there were only 2 corrections of 5% or bigger, a 6.5% correction in November/December and a
As I wrote in my previous blog post, iTrade Fantasy League Announcement, share prices on the JSE have run far ahead of earnings expectations. The JSE All Share Index increased by more than 30%, from 38,000 on 24 June 2013 to 50,000 in May 2014. This was much more than earnings (profit) growth with the
Gerhard Lampen, the head of Sanlam iTrade, consults regularly with the Director of Investments for Sanlam Private Investments, Alwyn van der Merwe, regarding the timing of investing the R1m of the Fantasy League Portfolio. There are major risks for us if the portfolio makes a loss by the end of the investment period, November –
28 August 2013 The JSE had quite a spectacular run over the last two months. The Allshare Index gained 14% since 24 June to 26 August and slipped 2% over the last two days. The major engine this time was the Resources sector. The Resi Index shot up 22% from 5 July to 26 August.
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
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