Umbhali Oqavile

  If you have traded LEVERAGED DERIVATIVES and blew you account, it was your fault and a combination of other factors. Derivatives, weapons of mass destruction If you trade derivatives, if the market moves against you then you are going to lose, period. Derivatives are exotic financial instruments that track underlying assets. Share derivatives, or contract for derivatives (CFDs) as they are widely known, track the underlying shares. So, if you trade these you do not have the luxury of keeping your valueless shares if the market moves against you. The broker will close the trade and debit the value of the shares you lost. If you buy and OWN shares, and the share price drops, you will always own your shares even though their value will have dropped.  You can trade actual shares, if you sell lower you will just lose the difference between the buy price and sell price, the opposite of making a profit from your trades. Are derivatives bad? Not really, if you understand them. Familiarise

How many experienced Traders or Investors do you have in your circle of friends? People who use their experience and knowledge to help you grow in the path you have chosen. Basically, I am asking if you have the necessary support to achieve your market aspirations? Not that you will not make it on your own; they might make the learning curve short &  less steep for you. In hard times, you may have someone who have walked the journey before giving you an ear, and probably a tried and tested solution. We know Warren Buffett and all other great traders and investors' values, but we do not have the privilege to talk to them. You may know that you must buy low sell higher, or do dollar cost averaging or buying when there is blood on the street. But how do you keep on buying when it is your own blood in those streets? I never knew that I needed support until I had it, it made my life easy. We are in the business of making money, we are not just winging it hoping that we will make it.

Some charts of interests this week. Nothing much, just the same boring, profitable technical analysis that revolves around the price has reached this level blah blah blah. Stories are cute, but ngifuna imali mina hhay izitori . Alviva (AVV) I have held this stock since it broke above the 200 day exponential moving average in October 2020; there was a bit of a pull back, hitting my stop loss . But I went back in when it closed above the level again, a move that so far has given me  a net 39% return (after the initial ~10% loss). The stock is currently trading near a potential resistance level. If it breaks above R13.40, there is a possibility that it can test R20 and probably move further up to reach the previous high of R24.00 Invicta (IVT) Second time is a charm, right? Another stock that I bought when it broke above the 200EMA, the trade move as anticipated before (briefly) going nowhere. I needed cash to buy something that is moving, so I covered my position. IVT has managed to sta

I have been keeping an eye on the gold price. As I mentioned before, patience is needed to have positive results in trading. Today gold reached the level I was waiting for, however the signal is not confirmed yet. I am waiting for the price to close above the 200EMA, then I will buy gold. I am targeting the previous high at $2100/ounce. At this level, the risk to reward is justified. Always practice risk management when trading derivatives; to minimise risk, it is better to buy a gold price tracking ETF or ETN.