Umbhali Oqavile

  Few interesting charts to kick off the trading week.  Anglo American Platinum (AMS) The stock is back near R1500/share, an area of value. Although the stock is trading below its 200EMA, it may find support here, especially if there is still commodity appetite in the markets. BHP Group PLC (BHP) Another mining giant falling on its knees. The stock broke below the 200EMA, and the head-and-shoulder neckline, a not so attractive confluence. R365-ish is the next potential support. DRD Gold (DRD) In my defense, gold attempted a short-lived trend reversal, and I dived in to buy the dip. As you can see, it ended in tears. I am now bearing on gold, and most mining stocks after I exited my Sibanye position. Pan African Resources (PAN) Let us wrap up the horrible resources stocks with PAN. Another failed trade. You do not need any more convincing that at the moment gold stocks are a no go zone. Sure, most of these companies have loads of cash, they will afford to pay dividends. But, do you want

I have been following cryptocurrencies for a while now, and I own a few coins through VALR . VALR is one of the South Africa's cryptocurrency brokers. Since Bitcoin broke down I have been generally bearish on crypto. However, I had a buy signal for Litecoin and XRP; I have since exited the Litecoin position, with a tiny loss. Let us look at what to expect from the cryptocurrency space. Bitcoin: $BTC moved up from the near $30 000 support level back to the near $40 000 resistance level. Note that the 200EMA is now facing downward and the 50EMA is approaching it. If we see a death-cross here we can then expect the price to go back to the support level. However, if there are enough buyers to push the price beyond the resistance level, then we might see Bitcoin go back to the previous high of $60 000. Dogecoin: DOGE just broke below the 50EMA. It is common that price can retest the 200EMA level once it breaks down the 50EMA, we saw it with Bitcoin. If that happens then we might see DOG

Investors are always searching for investing opportunities, both in publicly listed and private companies. There are interesting private companies, except that it is a challenge to get a piece of them. So, you have to wait for the Initial Public Offering (IPO) .  Companies sell shares to the public to raise funds; they use these funds to grow the business, or to pay debt, it is a more complicated than this but you get the picture.  A handful of smart people work collectively to get the company listed in the securities exchange. This often include company founders , management, investment bankers , and other advisors. These people disagree on a number of things but the focal point of this Blog is the value of the business; from a trading perspective, the listing price. The founders want a fair price for their business. They will not settle for anything less that what they perceive to be the value of their brainchild. They will fight tooth and nail to get the highest possible price. Inve

I find myself wondering if I will ever have a multibagger in my portfolio. Granted, I have had trades returning north of 100%, but I have never went past 200% in a single trade . Trade. There lies in my biggest enemy; I trade stocks and I am not ashamed of it. Trading, or price action investing , is different to the conventional way of investing, value investing . I do not dive into the company financial statements to try and assess if the company is trading at the fair value. I look at the price action of the stock, make my mind if the risk is worth the potential reward, if it does, I buy few shares of the company. Some trades do well, multiple R returns, some beyond 50% return. Sure, 50% is not that great but if you look at it from risk management's perspective, it is a lot, assuming you risk -10% on that position. See, a 1:5 risk-to-reward is a big deal, unlike 1:2. In this case, you do not look at stock with the intention to double your money. You determine how much you are wil