Umbhali Oqavile

 Trading opportunities, or should I say investing opportunities. I aspire to be a Trader and my definition of investing is "using resources to generate more resource", and for that reason I consider my trading activity to be a form of investing. But, periodically we disagree on "investing" and how it should be done. I also find myself questioning myself, is my approach the "correct" route to reach my destination, financial freedom. No doubt, trading is a good way to reach financial freedom, there's enough evidence, the question is can I do it? If I can't what other approaches can I use, and when to throw the towel. Is it possible to pick stocks that can return 10x or stock picking is a fool's game? This is one of the topics we tackled last week following Simon Brown's poll on Moneyweb, and a tweet by the Vector Equilibrium. Simon asked how "investors" performed in 2021, some didn't do well and VE asked how bad do you have to b...

We all use different approaches in the markets, the good news is that there is no wrong way, just your way.  I use Systematic Trend Following to trade the markets. It is an approach that I learnt from Traders who mostly trade other securities besides stocks. It is a technical analysis approach that is based on moving averages. It works well across many instruments, at different time frames. It is a good approach for indices and commodities. Whilst it is applicable to forex and stocks, it has some limitations, especially with stocks, at least in a short time frame, below 1-day. Even though I joined the markets with the intention of becoming an (a stock) investor, over the years I have evolved into a stock trader. At first I was just a kid who wanted to invest for his future self; unit trusts (I know hey) there and couple of stocks there. Eventually I caught the wind of "trading" and I wanted in. I realised that I needed a strategy, unlike buying index tracking unit trusts or ...

Is Aveng a good investment? I did something bad, I broke my rules and dived into Aveng's financial statements. It was for the Channel's viewers and subscribers, so it was done out of altruism. I do not do fundamental analysis, although what I did cannot be fully described as fundamental analysis. Note that I have already made a video of Aveng analysis using technical analysis. I did this to help the people who are supporting the YouTube Channel; most of those people are interested in Aveng, some of them know why whereas others do not, they bought the hype. What is in the financials? I used the company's 2021 interim results for the analysis. I then compared those with their most recent trading statement . Below is a summary of the interim results. As you can see, it is green everywhere. I love the growth in revenue, it means that there is money coming into the business bank accounts. Another great thing is the net cash, I do not know what it means but it good to see the ...

  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...

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...

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.