Equity trading strategies pdf - PSG - Tutorial 2 - Choosing your first shares
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Knowing how to manage your money especially on forex trading gold forex markets is, possibly, the very first discipline to learn strategies equity pdf trading entering the markets. Here you can find valuable information on the basic terms equity trading strategies pdf illustration of how to best manage your capital.
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Practice your trading skills and play trading game using free virtual eqhity, chatting with your friends. Bug fixes and stratsgies improvements. What is the level of inflation in all those different markets? What is the current trend - up or down?
Most western economies use interest rates as a mechanism to control the level of inflation. What is the current trend with interest rates - up or down? The trading strategies pdf equity step is to look at the relationship between all the major currencies. Is the US Dollar becoming stronger or weaker?
What are the implications or a stronger or weaker US Dollar? What are the implications or a stronger or weaker Rand? Precious metalsis the next step in your top-down method, and here you want to look at what is happening with the gold priceas well as the platinum price? Is there an opportunity there? Taking all of the above into consideration, you need to decide how do these factors affect or impact on the local South African market?
What is the current trend on this market? Is it moving up or down? If you think that inflation world-wide is under control and that interest rates will either stay at current levels td ameritrade stock options trading pdf equity strategies move lower, then what industries would benefit from a lower interest rate environment? Alternatively, you see that the gold price is starting to move higher and that the Rand is weakening against the US Dollar; you may consider looking at the mining and resource industries.
Divide the South African economy into the three broad industries, namely: If you anticipate a lower interest rate environment, what specific sectors would benefit from that? You may consider the banking sector, as the banks would gw trading system borrowing more money as people take advantage of lower finance charges.
You may also consider looking at the consumer sector i. If you anticipate that the gold price is looking favourable, then you would zoom in on the equity trading strategies pdf mining sector, for example. Within the banking sector, you would like at specific equity trading strategies pdf. For example, banking shares such as Standard Bank equity trading strategies pdf Firstbank, while in the retailing sector you would look at Shoprite, PicknPay and Clicks. The same would apply three black crows mq4 the gold mining sector, where you would look at Anglogold, Harmony and GFields for example.
The final step is to see if these initial shares would meet your criteria in the share selection check list that you would use as a equity trading strategies pdf benchmark for shares that you think would offer potential. In other words, this is your fundamental and technical reasons why. The Top-down method for finding interesting-looking shares is a very useful method as it is a reliable and safe method.
Start forming the habit of formulating an opinion for yourself on all those markets. Is it up or down? To get on pfd of all this information, you will need to read the daily financial press to be aware of what is happening in the world markets. We suggest that besides the information which you can get from equity trading strategies pdf PSG Securities Ltd best online broker to trade options other good sources of financial information include:.
Remember, that you want to formulate an opinion and then decide on a specific plan of action.
You may be wrong equity trading strategies pdf, but always learn why and then correct pd actions. This method uses the financial press, such as the Business Day and Business Report. Other financial press that you convert options to stock also consider strtegies would be the weekly publications such as the Financial Mail and Fin Week.
Skim through the gw trading system, for example, and look at the headlines for 'bad news. Would any of these companies be recovery situations? A word of caution though: Be selective when choosing equity trading strategies pdf resources you use. PSG Securities Ltd websiteas well as many other local financial websites, including www. Alternatively, focus on the sectors and individual shares of personal interest to you i.
For example, if you are an engineer, then focus on the engineering sector. If you are a medical doctor, then strategies equity pdf trading on the healthcare and pharmaceutical sectors. With whom do you bank with and who are you insurers? There are reasons why you like them.
Once again, you have to do a lot of reading strategirs smart reading! This fundamental analysis method means the keeping of a financial diary, equity trading strategies pdf which you would record the financial year-ends of all the companies that may interest you.
It is suggested that a bi-annual book like the JSE Digest from Profile Media would be useful in providing this information.
You would then anticipate what their financial results would be by first looking at their past five year performances and then estimate what the results would be like within the current economic climate. Would it be "good" or "better than expected"?
If you anticipate good results and you believe that the market in general has not picked up on this yet, then you would get in strategids before the "crowd". Remember, the financial results are usually only printed equity trading strategies pdf the financial press two to three months after their financial year end.
This gives you that short window of opportunity to make some money fast! Alternatively, we suggest pdf equity trading strategies you use the forexite data download facilities available on the PSG Securities Ltd website such as the Value and Quality Filter, which saves a lot of time. The Filters help to narrow down the choice by using 12 fundamental search criteria.
The Company Analysis is a one page research document on equiyy financial and industrial share, as well as some selected resource and mining companies, which provides all the pertinent strategis information an investor would require to making well-informed investment decisions.
The technical analysis method of prospecting for shares involves the "scrolling" through of charts using various technical analysis indicators to find shares that are "oversold" or presenting a buying opportunity.
This could be equity trading strategies pdf time consuming! The Wen Professional Plus charting software will help eauity track the market, as well as the shares that stock options rtt may be interested in.
You would select the Hi-Liter criteria and equiry a list strategie shares, equity trading strategies pdf for equity trading strategies pdf that will meet your specific technical criteria.
A list of results will then be produced, which will need further analysis and visual confirmation. Using the four methods as discussed above, you may come up with a list of interesting-looking shares for further investigation. You may have decided on some shares using the Top-Down Method, some from reading the financial press, some using the fundamental analysis method and some using the technical analysis method.
It is this group of shares that you are now going to add into your own watch list. You can either add shares to this Default watch list or create a trwding watch list Step 2. Click on the "ADD" button Step forex position management to create a new watch list.
Next, you strategies pdf trading equity need to add the shares to your watch list where you will need to know the share codes. If you do not know the share codes, select the "T" in the top-right hand corner to take you to atrategies Code Finder.
After entering the share code, click the "ADD" button Step 4. The watch list stock options w-8ben which shares are moving up or down, compared to the previous day. Between your three watch lists, you will see where the market activity is. Once you have formulated an opinion on strategids general economy i. As mentioned earlier, the Value Investor is a very powerful tool for equity trading strategies pdf to enable them to make informed decisions.Top 3 Technical Analysis Indicators (Ultimate Guide)
The watch list changes to show the relative financial ratios. You can then select the individual columns to "rank" equity trading strategies pdf criteria in either ascending or descending order.
This enables the investor to then focus on the best possible options. For example, you may only be interested in those shares that are undervalued and profitable and have manageable financial risk, while also paying a healthy strategies pdf trading equity. The watch list, for example, has then been ranked in ascending order based on the PEG ratio. Step 1 was to narrow down the choice and create an initial watch list or three of interesting—looking shares.
By now you have narrowed your down your equity trading strategies pdf of shares and have included them into your own watch list on the PSG Securities Ltd website. Now you need to do some share market analysis and this is where the homework comes in! Share analysis consists of the two schools of thought, namely: Dividends must be declared approved by a company's Board of Directors each forex trading si guadagna they are paid.
For listed companies, there are five important dates to remember regarding dividends. Sttrategies analysis addresses the question of "What share to tradinng. It is concerned primarily with analysing the future profitability of the company.
Step two will focus on the fundamental analysis part of share market analysis. When we talk about macro fundamentals, we mean how does trade options service company operate within the economy? If the economy is doing well, then the industry should be doing well. Option trading without risk the industry is doing well, then the individual sectors should also be doing well and hence the companies and the share price.
In other words, you want to see growth in the economy. Share Info Pages From your watch list Step 1select the share code Step 2 of the company that you want to analyse equity trading strategies pdf. Here you will find all the information that will help you strategies equity pdf trading a better, informed decision. You will see today's statistics and how the share has performed compared to the previous day's close. You will see the bids and offers for the share, as well as the intra-day chart.
Now you need to zoom-in on the individual companies in your own watch list. Ideally you would get hold of their latest annual financial statements, which includes the Balance Sheet, the Equity trading strategies pdf Statement, as well as the Cash flow Statement.
The quickest way to get hold of these documents is to visit the individual company's website, find equkty Investor Pef, and then download the latest financial rtading in PDF format. Next, it is about understanding ratio analysis. Pef most important financial ratios to analyse is not EPS growth, but rather the following:.
From the Company Analysis page, you will have a better idea of the nature of business, a comment on the latest financial results, as well as the company's prospects equity trading strategies pdf forward and a recommendation.
This is useful in that it helps the pdv get to know the company better, as well as fine-tune their watch lists further by goptions trading signals unfavourable shares. At this stage, you just want to have strategies equity pdf trading "preliminary fundamental checklist", which will help you decide whether the gw trading system in your own watch list merits further analysis.
Step 2 should equity trading strategies pdf provided you with a list of Fundamental Analysis checks which by completing this 'checklist' will ensure that you are able to identify and separate good undervalued shares from overvalued and under performing shares!
Apply the Fundamental Analysis Checks equjty the shares in your initial watch list. Technical Analysis serves to determine "when to buy or when to sell" shares. It is concerned with the use of graphs to study historical price and volume patterns in order to predict the future course of share prices.
It determines the ' optimum time to buy and sell trqding ' as opposed to the "intrinsic value' of shares. Technical Analysis discounts fundamental factors and these fundamentals are stratwgies in the price and volume. Equity trading strategies pdf is determined by supply and demand, while volume is determined by commitment to supply and demand. Price and volume form trends and these trends form patterns.
The analyst's job is to identify these patterns for future buying and selling opportunities. The key assumption upon which technical analysis is based is that the sum of everything that everyone knows or feels about a share, sector or market is reflected pdf equity trading strategies the price and volume.
Prices move when there is a change in the feeling or when new knowledge becomes available. Technical analysis is the study of the share's price ozforex app volume chart to search for historical patterns which may help to predict the future price patterns.
Share prices move in a series of peaks and troughs. The direction of those peaks and troughs determine the direction or "trend" of the market.
There are three kinds of trend, namely:. While there are three trends, there are only two kinds of market. The share market apa hukum main forex always either in a trending market i.
Equity trading strategies pdf third of the time the market is moving sideways in what is called a consolidation period. The Primary or Main Cycle generally lasts between 1 and 2 years and is strategies equity pdf trading reflection of investors' attitudes toward the unfolding fundamentals in the business cycle. The Secondary or Intermediate Cycle is countercyclical trends within the confines of the primary cycle trend.
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These secondary cycles are more commonly known as 'corrections' within an uptrend and as 'rallies' within a downtrend. They last anywhere from 3-weeks to as long as 6-months or more. The Stratgeies or Short-term Cycle, which last from 1 to 3 or 4-weeks, interrupts small business employee stock options course equity trading strategies pdf the secondary cycle, just as the secondary cycle trend interrupts the primary cycle trend.
These minor cycles or daily fluctuations are usually influenced by random news events and are far more difficult to identify than their secondary or primary counterparts. Generally speaking, the longer the time span of the trend, the easier it is to identify. Over the years, technicians have devised a number of different ways of tfading representing market data on charts.
The most popular charts are the closing line chart and the bar chart. The interpretation of the bar chart is based on chart formations and the relationship between price and volume. These charts are used mainly for jobbing or short-term speculating. They also highlight chart patterns, which are of a much shorter-term nature e. Use a day moving average to help you establish whether you have a tradijg market i. Equity trading strategies pdf the price be above the day moving average, the trend is binary share options or bullish and should the price be below pdf strategies equity trading moving average, we have a bearish or downwards trend.
Use another two different shorter-term moving average time periods; the longer period for the trend, while the shorter period as a trigger.
Once you have established whether the current market is gw trading system 'trending' or ' trading market ' trading strategies pdf equity where the market is now gw trading system to the primary, secondary cycles and short-term daily fluctuations, then you consider getting your timing right.
Moving averages are very basic tools and they are your starting point when it comes to technical indicators. Relative Strength analysis is often used to compare a share or pdff performance with a market index. It is also useful in developing equity trading strategies pdf i. Step 3 would have provided you with a more in-depth understanding of how to use technical analysis indicators to assist qeuity to buy and sell shares at the right time! Compile graphs using the equitj analysis indicators you have learned to the equity trading strategies pdf in your watchlist.
What is portfolio management? Portfolio management is important as it means getting the maximum from one's share investments. Remember, you main goal is to maximise wealth by maximising returns i. It can be expected that these strategie be extended to tie in with certain overseas markets.
Portfolio strategy - You need to decide if you are an investor or a trader?
If you are more the trading strategies pdf equity type investor or have a longer-term outlook, then you may consider the buy and hold strategy to investing on the gw trading system market. Buy and hold strategy - The objective is to develop your investment portfolio and only make adjustments when absolutely necessary.
This strategy is often the most sensible and least risky strategy to choose. The medium to long term buy and hold strategy will almost always outpace inflation. If you are more the aggressive-type investor or have a much shorter term outlook, then you may equity trading strategies pdf the swing trading strategy or even shorter jobbing strategy.
Swing trading strategy - This is a more leisurely version of jobbing, where the objective is to climb in at the bottom and jump off at the top. Timing is the critical success factor. Jobbing absa forex trading platform - Jobbing is enjoyed by bold speculators who seek excitement. It is a process of jumping in and out of shares and taking advantage of very small price movements. Jobbing requires an active ear to the ground, an in-depth knowledge of the share market and takes up more time.
Here you have to be careful from a tax point of view as you may be classified as trading pdf equity strategies share dealer and be taxed accordingly. People equity trading strategies pdf in the share market because of the potential for high returns, but this comes at a price. This price is equity trading strategies pdf higher risk associated with share market investments compared with, for how professional forex traders trade a fixed deposit with a bank.
To reduce risk, one basic principle of portfolio management is diversification. Diversification means to spread your capital among different shares and industries. By doing this, one reduces the risk of losing money if things should go wrong with a particular share or shares.
Portfolio structuring is similar to diversification, but instead of spreading holdings across market sectors, you diversify your portfolio in terms of quality and time frame. The classic traditional portfolio consists of a well-balanced selection of equity trading strategies pdf chip" shares that are held strahegies.
This tends to minimize risk, but does not allow for exceptional returns.
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Portfolio structuring attempts to improve the return france forex trading a portfolio, without increasing equity trading strategies pdf risk.
The biggest enemy in the share market is human emotion i. The biggest challenge to you, as an investor, is to remain objective. One way to eliminate human emotion is to apply a stop loss strategy.
Description:You have opened your first PSG Wealth share trading account but as a novice returns (i.e. portfolio strategies such as buy & hold, swing trading or jobbing), . Many South African shares, such as SAB Miller, Old Mutual, Anglo American and .. Centre, and then download the latest financial statements in PDF format.