What are option premiums? Everything DIY traders need to know
In the world of DIY trading, options trading has become very popular as platforms like Clarity, by Investec, have made it easy to access to speculate on the price movements of options using Contracts for Difference (CFDs).
How SARB interest rate changes affect JSE stock valuations
Most people watch the latest decision on interest rates by the South African Reserve Bank (SARB) intently, because any change impacts our spending power and affects the economy and financial markets.
While most people are most interested in the impact that interest rates have on debt repayments, DIY investors should also pay special attention to changes in movements up or down, as they have a profound impact on the prices of stocks listed on the Johannesburg Stock Exchange (JSE).
What were the biggest market drops on the JSE?
When deciding what to do with your investments and trading positions, it is important to understand the difference between a crash, reversal and correction as they represent vastly different scenarios with different implications for your strategy.
10 Common mistakes retail traders make and how to avoid them
DIY trading and investing has exploded in popularity thanks to easy access to local and global stocks markets via online platforms like Clarity, with its low trading fees, intuitive interface, and a wealth of available market information.
While this has empowered a new generation of retail investors and traders, those that rush in to get their share of the markets can often make costly mistakes that can quickly erode capital.
It is important that traders and investors fully understand the rules and risks of trading to avoid common mistakes, especially when using leverage through margin trading or Contracts for Difference (CFD).
What are fixed income ETFs?
DIY investors looking to diversify their portfolios with a liquid asset that generates regular income from their investments have three main options – invest in cash, buy dividend-paying stocks, or invest in bonds.
A bond is a debt instrument that a company can sell to raise money without diluting ownership over the business, which generates income for investors from the interest payments over a set period, with the principal amount typically repaid at maturity.
Explaining economic indicators and their impact on stock markets
Multiple forces impact equity markets and influence the movement of stock prices, with the key economic indicators among the more important factors that do-it-yourself (DIY) traders and investors should consider when analysing markets and formulating their strategies.
What are dividend-paying ETFs?
Do-it-yourself (DIY) investors who want a little more than just a share of the markets can invest in individual stocks or exchange-traded funds (ETFs) that pay dividends to potentially earn regular income. Dividends are attractive as investors can use this income to reinvest in the market or use the cash payout for other expenses. The […]
The pros and cons of lump sum investing versus dollar cost averaging
DIY investors may face an important decision at certain points during their investment journey – what to do with a financial windfall, whether that’s a bonus, inheritance, a large SARS refund, or the sale of a company or asset. Investing these funds into the stock market is a good way to increase the value of […]
What is the difference between ETFs & mutual funds?
Collective investments like Exchange Traded Funds (ETFs) or mutual funds (or unit trusts, as they’re commonly known in South Africa) offer DIY investors several benefits when including them in portfolios. ETFs and mutual funds simplify the diversification process, offering cost-effective and easy access to a broad range of assets, sectors and geographies. This baked-in diversification […]
How to get AI exposure in public markets
According to IDC data, AI spending will exceed $631 billion by 2028, which will create multiple avenues for investors to gain exposure to this hyper-growth market beyond simply investing in companies that develop AI hardware and software.