27 Nov 2012 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 as the links to online courses. He also played around with a virtual portfolio on Sanlam iTrade for a few months acquainting him with investment principles and gaining practical experience. The excitement got him hooked and he has now opened a trading account, ready for real trading. This is the story of his first transaction.
Tso’s first stop is the general information page, packed with real-time market information and live newsfeeds from I-Net Bridge. Sanlam iTrade also provides live JSE SENS news. This means that he gets all company announcements at the same time as the rest of the investment community, even the brokers directly connected to the JSE. Listed companies are obliged to release all company results and sensitive announcements on SENS first to prevent unfair trading. He also looks at the latest JSE Index prices and the day’s major up and down movers.
Sanlam iTrade has a unique tool, called MAPS, that makes it easy to view large amounts of data on one page. All the shares in the JSE Top 40 Index or the Midcap 60 are displayed on one page. The shares are represented in blocks sized according to their market capitalizations. Price movements are shown in shades of green for up and shades of red for down. The brighter colours are easy to spot, indicating big price movements. Detailed price information and direct links to a share’s important data and chart is also available with one click of the mouse. Without having to scroll through a whole table of share price movements, investors are able to see in one glance at the MAP where the big movements in the market are occurring.
Next Tso goes to the major price movers of the day as well as over the last 3 months and notices that Gold shares are on the rise. He then browses through the different research reports his online broker provides. There is some positive news about the prospects of gold. Sanlam iTrade’s Blog mentions that Gold has good prospects as the US nears the Fiscal Cliff. They also make a compelling case to rather invest in the Gold ETF rather than Gold shares. He can also follow the conversation on Sanlam iTrade’s Facebook page and ask questions.
Now Tso wants to do some technical analysis. He first goes to the Learning Centre to study some of the tutorials on technical analysis. He then goes to the comprehensive charting facility that is also included in his monthly fee. He looks at Bar and Candlestick charts of all the major Gold shares and compares their performance with the Newgold ETF. Newgold far outperformed Gold shares.
Sanlam iTrade also provides access to Profile Media’s comprehensive fundamental data on all listed shares. This magnificent functionality is updated daily and is included in his small monthly fee. Tso first goes to the Consensus Broker Forecasts where the views of up to ten top research brokers are summarized. The consensus view on Gold shares are mostly “Sell” or “Hold”. He can also study up to 10 years of financial reports on any listed share.
Tso goes to the trading page and enters the code for Newgold, GLD. He can now see live share prices directly from the JSE. Having made his decision, he definitely does not want to miss the share because of a few cents so he enters his order at “Market”, meaning he will trade at the best offer price currently available. His buy order is processed immediately into the JSE without having to wait on the telephone and without the possibility of a typing error by the dealer. Seconds later, he can see his order is matched and moments later he receives a SMS confirmation of the trade, followed by an e-mail broker’s note the next day.
Tso can also protect his new purchase from sudden price declines with a stop-loss order when he is not watching the market. Quite helpful if he is on an overseas trip when the market falls. Tso has now started to build and manage his own portfolio. Over the next few years he will learn a lot about the market and share in its ups and downs. He will learn to protect his portfolio with put warrants and short single stock futures. He will share in the excitement of the JSE and have the potential to experience the rewards of successful investment and trading decisions.
Tso smiles, pleased with himself and pours himself a Johnny Black while thinking that he must tell his friends about this exciting and rewarding new hobby. Maybe we can even start an investor club and pool our ideas and resources. Now that is an idea!