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EXPLAINED: Calculation for CFD Brokerage with Anheuser ExampleHow do I calculate the brokerage I'll pay on a local CFD trade? You’ll need to calculate the brokerage you’ll pay to enter your trade and the brokerage you’ll need to pay to exit your trade. We’ll first need to lay out all the necessary information to calculate what brokerages you’ll pay… For this example, we’re going to use a trade example with Anheuser Busch InBev. And we’ll use the brokerage of 0.30% leg in (entry) and 0.30% leg out (exit) to pay. Here are all the specifics needed for this trade: Portfolio value: R40,000 Trade: JSE:ANH Type: Long (buy) Brokerage rate in: 0.30% Brokerage rate out: 0.30% Entry: R1,184.00 Stop loss: R1,143.00 Take profit: R1,215.00 Calculation #1: Calculating your ENTRY brokerage with CFDs Step #1: Know what your max portfolio risk is per trade Max % risk = (Portfolio value X 2%) = (R40,000 X 2%) = R800 Step #2: Find out the rands risked in trade Rands risked = (Entry – Stop loss) = (R1,184.00 – R1,143) = R41.00 Step #3: Calculate the number of CFD contracts to trade No. CFDs = (Max % risk ÷ Rands risked) = (R800 ÷ R41.00) = 19.51 SIDE NOTE: We always round down the number of CFDs, so that we risk less than what we choose to risk instead of more. Therefore, we will buy 19 CFDs in this specific trade. Step #4: Calculate your ENTRY exposure for the CFD trade Entry exposure = (Entry price X No. CFDs) = (R1,184 X 19 CFDs) = R22,496 Brokerage in = (Entry exposure X Broker rate in) = (R22,496 X 0.30%) = R67.48 This means, you’ll need to pay a brokerage of R67.48 in order to buy (go long) 9 Anheuser CFDs. Now we can move onto the next brokerage leg. Calculation #2: Calculating your EXIT brokerage with CFDs Step #1: Work out your EXIT exposure for the CFD trade Exit exposure = (Exit price X No. CFDs) = (R1,215 X 19 CFDs) = R23,085 Step #2: Calculate your brokerage leg out Brokerage out = (Exit exposure X Broker rate out) = (R23,085 X 0.30%) = R69.25 Step #3: Calculate the total brokerage for the CFD trade Total brokerage = (brokerage leg in + Brokerage leg out) = (R67.48+ R69.25) = R136.73 This means, if the trade hit your take profit level you would have ended up paying a total brokerage of R136.73 for your Anheuser CFD long trade.
JSE:ANHEducation
by Timonrosso
JSE ALSI Setting itself for upside? Maybe we don't sell in May?!JSE ALSI 40 - Cup and Handle seems to be forming on the ALSI 40, We need to wait for a breakout to the upside. Price >200MA RSI>50 Target 79,178 I prefer banking money when markets go up than down. So this might be the saviour for May with the JSE ALSI! SMC: We have a Sell Side LIquidity area below the new Handle. This is where Smart Money has come and swept through selling (Long traders stop losses) and (Short traders entries). They have bought into these orders, which is pushing the price up. Super bullish signs from the big boys.
JSE:J200Long
by Timonrosso
2
Richemont shooting up since share distribution to R4,142 Rising Wedge has formed on Daily. Normally you expect the price to break down as it's generally a bearish pattern. However, as the trend is up, the wedge is up and the gap is up - signals strong upside. The price has broken up, and we could get a bit of downside before the next move up. 7>21>200 RSI>70 Target R4,142 FUNDAMENTALS: It seems like since the share distribution 1:10, investors are seeing the share as a valuable one to hold in long term portfolios, which is why they're buying the share up. R3,400 is more attractive than a R340.00 share clearly. We'll have to see how this one plays out
JSE:CFRLong
by Timonrosso
Maximise your trading success with market analysisWhen it comes to trading, one of the most important skills to develop is market analysis. When you know how to read the market and make informed decisions, it can be the difference between spotting high, medium and low probability trades. Here are some ideas to analyse the market and maximise your chance of success. Start with the Main Indices The first step in market analysis is to take a look at the main indices. These indices, such as the JSE ALSI, SP500, Nasdaq, FTSE100, and others, are a good indication of the overall market direction. Once you have seen the indices, you’ll get a sense of how the market is moving as a whole, and what kinds of opportunities might be available. Identify the major Trends Once you’ve looked at the main indices, it’s time to: Identify any market trends (Market environment) If the market is showing a strong uptrend (trend, momentum, moving averages analysis) Then it’s best to ONLY look for longs or buys. On the other hand, if your indicators suggest that the market has confirmed a downtrend, it’s best to look for sells or shorts. Look for Breakouts Sometimes the market doesn’t confirm an up or down trend. If you see the market is moving in a sideways manner, there’s still an opportunity to profit. In this case, it’s a good idea to write down the levels of breakouts you’d expect. If the market breaks up, you’ll expect longs, and if it breaks down, you’ll look for shorts. This way you’ll prepare for both outcomes And you’ll be able to capitalize on whichever direction the market takes. Final Thoughts Market analysis is a critical skill for any trader to master. When you start with the main indices, to identify trends, and looking for breakouts, you’ll be able to make informed decisions about your trades and get a good idea of where they’re more likely to head.
TVC:SA40Education
by Timonrosso
JSE ALSI setting itself for downside to 67,985 due to the bad RInverse Cup and Handle has formed on the JSE ALSI 40. We need the price to break below the brim level and all hell will break loose. MA 21>7 RSI < 50 Target 67,985 FUNDAMENTALS. The rand is majorly in trouble, R19.80 to the US Dollar and R23.90 to the pound. Is this because of load shedding. Is this because people are leaving the country due to the inefficiencies of the government. Is this because of the world markets coming down? Or is it a combination of all. Whatever it is, we are seeing downside to come.
JSE:J200Short
by Timonrosso
4 Ways to STOP Impulse TradingHow do I STOP Impulse Trading? Just a reminder. An impulse trader is one who makes quick, irrational decisions to take a trade (long or short) for some form of immediate satisfaction it may bring in the short run. Impulse trading might occasionally work. But it's risky and can damage your trading confidence and psychology in the long run. That’s because when you win, you’ll take more impulse trades that go against your strategy. But then the winning streak will end and the losing streak will come. And that’s where you’ll blow your portfolio eventually. So, to help you overcome impulse trading, I suggest these three solutions: Solution #1: Take a break When you feel the urge to make an impulsive trade, step away from your computer for an hour. Use the time to go cook a meal, go for a walk, or do something else that helps you relax. Then when you’re feeling more relaxed and in tune, you can come back to trade the markets with a refreshed, rational mindset to see what has or is lining up. Solution #2: Reflect on your trading history Review your trading track record. It is your game plan. It shows you the potential of what is to come. And it allows you to look at your past data and trend of your portfolio. Consider the gains and losses you've experienced and remind yourself of why it is super important to stick to your trading strategy. This alone should help you resist impulsive trades. Solution #3: Set specific conditions for impulse trading If you still struggle to control your impulsive trading instincts, then this might be the best idea. Open a separate trading account with disposable funds. This way, you can indulge and take your impulse trades without jeopardizing your primary trading strategy and account. Maybe it’s a R10,000 or even a R50,000 account. Or if you just want to trade for trading sake it, it might be a R5,000 account. Whatever it is. When you feel impulsive, trade using your impulse trading account. And then when it comes to your main account, you’ll be able to follow your specific trading strategy according to your track record. Remember, trading should be approached and seen like running a business, not like playing a slot machine. Keep this in mind, and this should help save your portfolio.
TVC:SA40Education
by Timonrosso
1
Afrimat showing a strong bounce up to R60.00Cup and Handle formed on Afrimat following the downtrend that's been extended since 2022. We then had a break above the Brim Level showing demand and buying was in play. MAs -Mixed RSI>50 But there are higher lows. Target R60.00 SMC: SSL - Order Block This Sell Side Liquidity order Block is most apparent BELOW the entire formation. We can see sweeping of sells over the last month, and the buying into it has cause the price to rocket. Afrimat is looking strong for upside.
JSE:AFTLong
by Timonrosso
Shoprite showing strong downside to come to R177.11Head and Shoulders has formed on Shoprite and the price has broken below the neckline. 200>21>7 - Bearish RSI<50 Target R177.11 CONCERNS: I don't like shorting strong companies generally especially when the JSE ALSI 40 is on a strong uptrend. Revenue growth is up 17.20% Net income Growth is up 14.70% Average annual Revenue growth (15yr) up 11.08% Net Margin is 3% but ROE is -24.97%. So it's unusual to see downside for this retail giant. But anyways, charts are charts and we have a plan in place.
JSE:SHPShort
by Timonrosso
MONDI looking great on paper to R330.00W Formation is forming clearly on the daily. We need the price to close above and for the price to open above the breakout level. There are mixed signs with indicators (but this is normal during a change in trend) 7>21 - Bullish Price<200 - Bearish We need the price to move above 200MA to ensure upside to come. RSI>50 - Bullish R330.00 SMC: Below the W Formation, we see strong Sell Side Liquidity Order Blocks. This is where Smart Money has swept the selling from dumb money, bought into it and hence the price has pushed up.
JSE:MNPLong
by Timonrosso
Sasol setting itself for great upside to R339.45W Formation is forming on Sasol. We are seeing the downtrend slow down in momentum, and it looks like the price wants to break up and out of the down trend. This is a bit premature for a breakout trader, but it's still good to watch and prepare for. We have other indicators that still show downside (but potentially changing trend) 200<21<7 - Bearish RSI <50 Target R339.45 Wait for breakout first then it's full steam ahead to the upside.
JSE:SOLLong
by Timonrosso
LESSON of the day: Wait for Strong and Confirmed BreakoutsMany people like to predict breakouts. If there is one thing you learn today it's this. Always WAIT for a strong and confirmed breakout. There is a reason why the price hasn't breached the neckline (resistance). And that's because the fight is still on between the bulls and the bears. Now that Glencore has broken down not only has it slanted the Cup and Handle pattern but also. 1. There is a Break- away gap - Bearish. 2. The price is below 200MA - Bearish 3. 7=21MA and looks to cross down. Sure the price can turn up and close the gap, but the risk is too high! So follow your strategy and wait for a confirmed breakout. These lessons are important to learn before they become costly.
JSE:GLN
by Timonrosso
TARGET REACHED: Life Health struck our target 1 at R21.34 W Formation formed, we then had some high volatility around the price. Luckily, the stop loss would have been below the pattern. The indicators were all showing bullish signs. 7>21>200 RSI>50 Target struck at R21.34 ABOUT THE COMPANY Life Healthcare Group Holdings Limited was founded in 1983 and is headquartered in Johannesburg, South Africa. Life Healthcare is one of the largest private healthcare providers in South Africa, operating 66 hospitals and healthcare facilities across the country. The company employs over 19,000 people and serves over 4 million patients per year. Life Healthcare provides a wide range of medical services, including acute hospital care, mental health services, renal dialysis, and oncology care. Life Healthcare has a partnership with the South African National Blood Service to support blood donation drives and increase awareness about the importance of blood donation.
JSE:LHCLong
by Timonrosso
Anglo American PLatinum setting for upside potential to R1,644Potential Cup and Handle is forming on the daily. We are seeing higher lows form and the supply side is dwindling. Once we get a break above the brim level, it'll be all systems go. 7>21 Price <200 - Bearish RSI>50 -bullish Target R1,644.61 SMC: Sell Side Liquidity order block has formed below the formation. Each time the price touches, it runs up. That's because Smart Money comes in sweeps the selling from (Shorters) and long traders who gets stopped. They buy into the orders, which push the price up. This gives bullish bias.
JSE:AMSLong
by Timonrosso
TARGET REACHED: Sappi struck through the first price of R40.60Symmetrical Triangle formed on Sappi, the price broke below the apex and the price chose the bias of down. We had other indicators showing bearishness such us. 200>21>7 - Bearish RSI<50- Bearish Target reached at R40.60 The trend is still down and we will need the next formation to form before we decide what to do next. I'll keep you updated. ABOUT Sappi Limited was founded in 1936 and is headquartered in Johannesburg, South Africa. Sappi's name is derived from its original name, South African Pulp and Paper Industries Limited. (Also think of SAP from a tree I guess). The company was founded in South Africa in 1936 as a state-owned enterprise and was later privatized in the 1990s. The name Sappi was adopted in 1997 when the company underwent a rebranding exercise as part of its global expansion strategy. The company is listed on the Johannesburg Stock Exchange (JSE) and the New York Stock Exchange (NYSE) under the ticker symbol "SPP". Sappi is a leading global producer of dissolving wood pulp, paper pulp, and paper-based solutions. The company has operations in North America, Europe, and Southern Africa, with customers in over 150 countries. Sappi produces a range of products, including graphic papers, packaging and speciality papers, and pulp. In 2020, Sappi launched a new product range called Sappi Verve, which is a compostable barrier paper designed for use in food packaging.
JSE:SAPShort
by Timonrosso