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Welcome to Marketworx. Shaun van den Berg Head of Client Education at PSG Online. Tuesday, 21 August 2012. Marketworx :. Technical Analysis & Trading. Tuesday, 21 August 2012. Marketworx Agenda. Investor. Make Money. Trader. SSF. Equities. CFD. CFD Product Description.

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Welcome to marketworx

Welcome to Marketworx

Shaun van den Berg

Head of Client Education at PSG Online

Tuesday, 21 August 2012


Marketworx

Marketworx:

Technical Analysis & Trading

Tuesday, 21 August 2012


Marketworx agenda

Marketworx Agenda

Investor

Make

Money

Trader

SSF

Equities

CFD


Cfd product description

CFD Product Description

Derivative - A contract whose value depends on (or derives from) the value of an underlying share e.g. share – ANG, BIL, SOL

Go ‘Long’ & ‘Short’ with CFD’s on Top 100 JSE listed shares

  • Margin deposit requirements

    • 15% Top 40 shares / 17.5% on next 60 shares

Variation margin required for adverse share price movement.

Brokerage = 0.4% per transaction

Breakeven = 0.92% (VAT included)

Zero STT

  • Financing at competitive rates:

    • Current borrowing rate 7.00% (± Prime – 2%)

Minimum Exposure per trade of R25 000 (R4 500 margin)


Top 100 shares cfd margin

Top 100 Shares: CFD Margin

15% Top 40

17.5% Next 60

List reset after each Quarterly futures Close out


Cfd long short positions

You pay a script lending fee of 1.5% p.a. (Min R250)

Receive interest at SAFEX - 2 % p.a.

The holder is liable for the dividend

Dividend is not earned tax free as a CFD is a derivative contract

In the case of a short CFD, a holder of a short contract will have to pay the dividend to the issuer

CFD Long & Short Positions

  • Pay interest at SAFEX + 2 % p.a. (± Prime 2%)

  • The holder will receive a synthetic dividend

    • Dividend is not earned tax free as a CFD is a derivative contract

    • In the case of a Long CFD, a holder of a long contract will be paid an amount equal to the dividend by issuer.

    • This is seen as an income and is subject to tax


Cfd order book

CFD Order Book

Buy 100 Anglo shares @ R339.05

Exposure = R33 905.00

15% Margin = R5 085.75

R305.15

100 Anglo shares = R33 905.00

0.4% Brokerage = R135.62

14% VAT = R18.99

Total = R154.61

R33 905 x 7.0% = R2373.35/365 = R6.50


Pro s con s of cfd trading

Advantages

Disadvantages

Gearing & Risk

No voting rights

Pro’s & Con’s of CFD Trading

  • Low trading costs

  • No expiry date

  • Hedge your current portfolio?

  • All the benefits


Welcome to marketworx

Comparison with traditional shares


What are ssfs

What are SSFs?

A standardised contract.

Of a standard quantity (100) of a specific underlying listed share

Requires a fixed margin deposit to open a position (around 15% of the total value).

Expires on a predetermined future date: Third Thursday of every March, June, September & December.

Gives the owner the right to close the contract at a price agreed when entering the contract, including all relevant dividends & interest.

SSFs are listed on the South African Futures Exchange (SAFEX), a subsidiary of the JSE.

  • SSF contracts equate to100 shares of the underlying instrument.

  • SSFs are created at the close of trading.

  • All unmatched SSF orders expire at the end of the trading day.

  • All partially matched orders will be cancelled at the end of the day.


Comparable to equities

Comparable to Equities

INVESTOR A (Share Trader)

INVESTOR B (SSFs Trader)

Confident that Sasol shares will increase.

Confident that Sasol shares will increase.

She has R35 000 which she can invest.

Sasol’s share price is R350,therefore she buys 1 contract.

Sasol’s share price is R350,therefore she buys 100 shares.

The initial margin set by the broker is R6 000 which is paid by the buyer.

3 months later the price has increased by 10% so she sells her shares to make a R3 500 profit.

After 3 months the price has increased by 10% & the investor closes out his position & sells out of theSasol SSF contract.

Her return on her investment is 10%.

His profit is R3 500but his return on his investment is 58%.


Comparison between ssfs cfds

SSF

CFD

Unregulated

Trades OTC

No Expiry Date

Principle amount could change

Interest fluctuates daily

Retail interest rates

No best execution obligation

Captive markets

Opaque

Not guaranteed by SAFCOM

Manufactured dividends

Never physical delivered

Comparison between SSFs &CFDs

  • Regulated by JSE/FSB

  • Exchanged traded product

  • Expiry Date= Rollover costs

  • Set principle amount

  • Interest agreed upfront

  • Wholesale interest rates

  • Best execution

  • Free markets

  • Transparent

  • Guaranteed by SAFCOM

  • No dividend paid/received

  • Fungible financial instrument

  • Can take physical delivery


Ssf margin

SSF Margin

Initial margin

per

contract

Top 100 Shares

ALSI & ALMI

Copper, Gold, Platinum, Silver & WTI Crude Oil


Ssf simulator ssfsm

SSF Simulator (SSFSM)

Step 1

Select

SSFSM

Step 3

Click Reset

Simulator

Step 2

Check R100 000


Ssf simulator alsi

SSF Simulator (ALSI)

ALSI – Most popular

Top 40 Shares

Liquid, Cheap,

Tight Spreads

Long & Short


Ssf simulator alsi1

SSF Simulator (ALSI)

19 point spread = R10 x 19 points = R190


New order alsi buy

New Order (ALSI Buy)

Example 1:

Buy (Long)

1 contract

@ 30 050

Step 1

Select

Direction

Step 4

Click Submit

Order

Step 3 Enter

Points

Step 2 Enter

Contracts


Trade history alsi buy

Trade History (ALSI Buy)

Select Trade History

Margin Movement

Margin = R27 450

Exposure = R274 500

Cost R25 per contract

R10 per point

100 points move = R1000


Financial history alsi buy

Financial History (ALSI Buy)

Select Financial History

Margin & Brokerage

R25


New order alsi sell

New Order (ALSI Sell)

Sell (Long Close)

Moves up to 30 350

= 300 points move x R10 = R3 000

Step 1

Select

Direction

Step 4

Click Submit

Order

Step 2 Enter

Contracts

Step 3 Enter

Points


Trades history alsi sell

Trades History (ALSI Sell)

Profit or Loss

Margin Returned


Financial history alsi sell

Financial History (ALSI Sell)

Select Financial History


Ssf simulator portfolio

SSF Simulator - Portfolio

Select Portfolio

Example 2:

Buy (Long) @ 30 050

Moves down to 29 921

= 129 points move x R10 = R1 290 loss

(Margin Call)

Example 3:

Sell (Short) @ 30 050

Moves down to 29 689

= 361 points move x R10 = R3 610


Ssf simulator alsi2

SSF Simulator (ALSI)

65 point spread = R1 x 65 points = R65

Margin = R2745

Exposure = R27 450

Cost R5 per contract

R1 per point

100 points move = R100


Sab miller sab

SAB Miller (SAB)

Target Price = R325 + R22 = R347

Stop @ R320

Buy (Open) SABSEP12

contract

@ R325.00


Position size margin ssf

Position Size & Margin (SSF)

  • You have R100 000 in your SSF account

  • You are willing to risk 2% of your capital = R2 000

  • You decide to buy SAB Miller (SAB) at R325.00

  • You set a stop loss @ R320.00

    • R325.00 – R320.00 = R5.00

    • Take R2 000 & divide it by the R5.00 per share that you are risking (R2000 / R5.00)

  • Your position size = you can buy 400 shares

    (400 shares = 4 contracts)

  • The SSF initial margin required per contract is R2 625

  • R2 625 x 4 contracts = R10 500 initial margin

    • 4 x 100 x R325.00 = R130 000 exposure


New order sab buy

New Order (SAB Buy)

Step 1

Select

Direction

Step 4

Click Submit

Order

Step 2 Enter

Contracts

Step 3 Enter

cents


Position size margin ssf1

Position Size & Margin (SSF)

  • Initial Margin = R10 500

    • R2 625 x 4 contracts

  • Exposure = R130 000

    • 4 contracts x 100 shares x R325.00

  • Brokerage cost on Open = R671

    • R130 000 exposure x 0.47% = R611+ R60

  • Target Price (TP) = R347

    • R325 + R22

  • Reward = R8 800

    • R22 x 4 contracts x 100 shares

  • Risk = R2000

    • 4 contracts x 100 x R5

  • Risk : Reward Ratio = 1:4.4

    • R2 000 / R8 800

  • Brokerage cost on Close= R652.36

    • R138 800 exposure x 0.47%


Sab miller sab1

SAB Miller (SAB)

32500c + 2200c = 34700c


Summary ssf simulator

Summary: SSF Simulator

  • Trading the ALSI

    • Most popular instrument

    • Top 40 Shares

    • Liquidity (± 40 000 contracts per day)

    • Cheap (R25 per leg)

    • Tight Spreads

    • Long & Short

  • Trading Equity SSF

    • Long & Short

    • Trade spot market

    • Cheap (0.47% inclusive per leg)


Marketworx agenda1

Marketworx Agenda

Investor

Make

Money

WEN Charting

Technical

Analysis

Trader

SSF

Equities

CFD


Share market analysis

Share Market Analysis

Share Market

Analysis

Technical

Analysis

Fundamental

Analysis

Price

Macro

Fundamentals

Micro

Fundamentals

Volume


Technical analysis

Technical Analysis

Technical

Analysis

Fundamentals

Price

Volume

Supply & Demand

Trends

Patterns


Market psychology

Market Psychology

1st Stage

Things

would not

always be rosy

3rd Stage

Things

will get

better

forever

2nd Stage

Things are

deteriorating

2nd Stage

Improvement

Is actually

underway

3rd Stage

Things

can only get

worse

1st Stage

Things are getting better


Technical analys is

Secondary Indicators

Technical Oscillators

Stochastic Indicator

MACD Indicator

Volume Analysis

OBV Indicator

Relative Strength Analysis

Relative to Sector

Relative to JSE Overall

Technical Analysis

  • Price Charts

    • Closing Line Charts

    • Bar Charts

    • Bar Volume Charts

    • Candlestick Charts

  • Moving Averages

    • 200-day EMA

    • 50-day EMA

  • Breakout Trading

    • Cycle & Trend Analysis

    • Support & Resistance

    • Trend Lines

    • Continuation Patterns

    • Reversal Chart Patterns


Price charts closing line chart

Price Charts: Closing Line Chart


Price charts bar chart

Price Charts: Bar Chart

High

Close

Open

Low


Price charts bar volume chart

Price Charts: Bar Volume Chart


Price chart candlesticks

Price Chart: Candlesticks


Technical analysis checklist

Technical Analysis Checklist

Trending(Up/ Down)

Cycles Support & Resistance Moving Averages

Trend Lines

Overbought/Oversold

Stochastic / MACD

OBV

Outperformance/Underperformance

Relative StrengthAnalysis


Trends cycles

Trends & Cycles

Bull

Bear

Corrections

Rallies

Sideways


Trends cycles1

Trends & Cycles

Bearish Trend

Bullish Trend

Bullish Trend


Market cycles bull

Market Cycles - Bull

Higher Highs, Higher Lows


Market cycles corrections

Market Cycles - Corrections


Market cycles bear

Market Cycles - Bear

Lower Highs, Lower Lows


Market cycles rallies

Market Cycles - Rallies


Moving averages

Moving Averages


Support resistance reversals

Support & Resistance Reversals


Support resistance

Support & Resistance

Resistance

Resistance

Resistance

Resistance

Support

Support

Resistance

Resistance

Support

Support

Support

Resistance

Resistance

Support

Support

Support

Support & Resistance levels highlight possible “turning points”


Support resistance1

Support & Resistance

  • The more times a share price has touched these areas, the more valid these levels are &themore important they become.

  • The longer these support & resistance levels have been in play, the better the outcome when the share price finally breaks out.


Support resistance bull

Support & Resistance - Bull

Resistance

Support

Support

Support

Resistance

Resistance/Support


Support resistance bear

Support & Resistance - Bear

Resistance/Support

Support

Support

Support

Resistance/ Support

Support

Resistance

Resistance


Trend lines

Trend Lines

As long as the price stays above/ below the Support or Resistance lines, the trend is either bullish or bearish

Resistance

Trend Line

Support

Trend Line

Resistance

Trend Line

Support

Trend Line


Trend lines bull

Trend Lines - Bull

Resistance

Resistance

Support

Resistance Trend Line

Support Trend Line

Support Trend Line


Trend lines bear

Trend Lines - Bear

Support Trend Line

SupportTrend Line

ResistanceTrendLine

Support Trend Line

SupportTrend Line

ResistanceTrendLine

ResistanceTrendLine

ResistanceTrendLine


Failed breakouts

Failed Breakouts


Entry points

Entry Points

  • Once prices are set toclose above a resistancelevel, a trader will establish a bullish position.

  • When prices are set to close below a supportlevel, a trader will take on a bearish position.


Exit points

Exit Points

  • How long am I planning on being in this trade? (Depends on what type of trader you are: Position, Swing or Day Trader)

  • How much risk am I willing to take?

    • Setting near-term profit targets that execute at opportune times to maximize profits.

    • Here are some common execution points:

      • Retracement levels.

      • Trend line breaks (Support & Resistance).

      • Any other technical points.

    • Developing solid stop-loss points that immediately get rid of holdings that do not perform.

    • Creating exit strategies based on technical factors affecting the short-term.


Exit points1

Exit Points

  • Where do I want to get out?

    • Many people become irrationally attached to their holdings & hold these equities when the underlying fundamentals of the trade have changed

    • Traders sometimes worry & sell their holdings even when there has been no change in underlying fundamentals.

  • Both of these situations can lead to losses &missed profit opportunities.

    • Set a point at which you will sell takes the emotion out of trading.

    • The exit point itself should be set at a critical price level, i.e. technical points e.g. Retracement levels


Trading strategies

Trading Strategies

Investor

Make

Money

WEN Charting

Technical

Analysis

Break-out

Trading

Trader

SSF

Equities

CFD


Breakout trading the steps

Identify the candidate

Wait for the breakout

Set a reasonable price objective

Allow the share to retest

Know when your trade has failed

Exit at your price target (TP)

Be patient

Breakout Trading: The Steps


Rectangle formation

Rectangle Formation

24 to 30 = 6


Breakout trading bidvest 1

Breakout Trading: Bidvest #1

137 + 19 = 156 TP

Resistance

Support

118 to 137 = 19


Breakout trading bidvest 2

Breakout Trading: Bidvest #2

Resistance

Support

Resistance / Support

Support


Breakout trading astral

Breakout Trading: Astral

Resistance

Support

Resistance / Support

Support


Breakout trading a v i 1

Breakout Trading: A V I #1

3100 to 3440 = 340

Resistance

Resistance

Support


Breakout trading a v i 2

Breakout Trading: A V I #2

3440 + 340 = 3780 TP


Breakout trading altech

Breakout Trading: Altech


Breakout trading nedbank

Breakout Trading: Nedbank


Triangles

Triangles


Ascending triangles

Ascending Triangles

TP


Descending triangles

Descending Triangles

TP


Flags

Flags

TP


Head shoulders

Head & Shoulders


Head shoulders target price

Head & Shoulders Target Price


Inverse head shoulders

Inverse Head & Shoulders

TP


Breakout trading conclusion

Breakout Trading: Conclusion

  • Breakout trading welcomes volatility.

  • The volatility experienced after a breakout is likely to generate emotionbecause prices are moving quickly & in a volatile fashion.

  • Using the steps & information covered will help you define a trading plan that, when executed properly, can offer great returns & manageable risk.


Secondary technical indicators

Secondary Technical Indicators

MACD indicator

Stochastic indicator

Volume Analysis

OBV indicator

Relative Strength Analysis

Relative Strength indicator

Secondary Technical Indicators

It must be remembered that no indicator should be used alone.


Stochastic indicator

Stochastic Indicator

Stochastic = Close - Low x 100%

High - Low

14 = Hi = 10014

14 = Lo = 014

Sell Zone

Sell

Sell

Sell

Buy Zone

Buy


Stochastic indicator1

Stochastic Indicator

Bullish Divergence


Macd indicator ob os

MACD Indicator (OB/OS)

Overbought

Oversold


Macd crossovers trigger line

MACD – Crossovers (Trigger Line)


Macd crossovers zero line

MACD – Crossovers (Zero Line)


Macd divergence

MACD – Divergence

Bullish Divergence


Volume analysis

Volume Analysis

???


Volume analysis1

Volume Analysis

Indecisive

Market Bottoms

Consolidation

Low volumes

Low volumes

Market Tops

New Trend

High volumes

High volumes


Obv indicator

OBV Indicator


Welcome to marketworx

Relative Strength Indicator

Data 1 = MTNData 2 = JSE Overall Index


Welcome to marketworx

Relative Strength Indicator

Data 1 = MTNData 2 = Vodacom


Welcome to marketworx

Relative Strength Indicator

Data 1 = VodacomData 2 = JSE Overall Index


Make quick decisions

Make Quick Decisions

WATCH

BUY

SELL

HOLD


Make quick decisions hold

Make Quick Decisions - Hold

Hold


Creating a watch list of winners

Creating a Watch List of Winners

Fundamentals = PSG Online website

Technicals = Wen Charting*


Hi liter scanner step 1 criteria

Hi-Liter Scanner (Step 1:Criteria)

Hi-Liter

Criteria


Hi liter scanner step 2 results

Hi-Liter Scanner (Step 2: Results)

Hi-Liter

Results


Hi liter scanner step 3 confirm

Hi-Liter Scanner (Step 3: Confirm)

View

Chart


Summary technical analysis

Secondary Indicators

Technical Oscillators

Stochastic

MACD

Volume Analysis

On Balance Volume

Relative Strength Analysis

Summary: Technical Analysis

  • Price Charts

    • Closing Line Charts

    • Bar Charts

    • Bar Volume Charts

    • Candlestick Charts

  • Breakout Trading

    • Support & Resistance

    • Trend Lines

    • Continuation Patterns

    • Reversal Chart Patterns


The trading plan

The Trading Plan


Welcome to marketworx

“Trading provides one of the last great frontiers of opportunity in our economy. It is one of the very few ways in which an individual can start with a relatively small bankroll and actually become a multi-millionaire” Jack D Schwager

The Trading Plan


The trading plan1

The Trading Plan

  • Know Yourself, Know Your Purpose

  • Trading Goals

  • Markets, Instruments & Timeframes

  • Tools of the Trade

  • Before the Market Opens …

  • Risk & Money Management

  • Exit Strategy

  • Trade Strategies, Setups & Entries

  • After the market closes …

  • Discipline

  • Golden Trading Rules …


Investor matrix

Investor Matrix

Prudent

Aggressive

High

REWARD

Conservative

Speculative

Low

Low

High

RISK


Who needs a trading plan

If you have achieved this:

Refresher course

Open your eyes to new aspects of trading that can improve your profitability

Consistently profitable

Who needs a Trading Plan?

  • Unless you are consistently profitable trader over a sufficient length of time to encompass a number of different market conditions – then YOU need a trading plan!


What will the trading plan do

What will the Trading Plan Do?

  • Makes the act of trading simpler

  • Limits your opportunity to make bad trades

  • It will prevent psychological issues

  • Act like a roadmap / Personal GPS

    • Either something in the trading plan is not working

    • You are not adhering to the trading plan

  • Take away much of the decision making

    • Emotional & irrational decisions

  • Enable you to trade outside comfort zone

    • Prevent letting losses run & cutting profits short

  • Instill a large measure of discipline


Know yourself know your purpose

Know Yourself, Know Your Purpose

  • Understand your psyche & sentiment

  • Decide what you want to achieve, ask why & how trading is going to provide it?

  • Why do you want to be a trader?

  • What sort of trader are you?

  • What are your strengths & weaknesses?

  • Are you in the right frame of mind to trade?

  • What are your income targets?


Trading goals

Trading Goals

  • Setting goals are essential

    • Beacon to work towards

    • Track progress

    • Motivation required

  • Define goals in terms of your development as a proficient trader

    • Annual Trading Goals

    • Monthly Trading Goals

    • Weekly Trading Goals

    • Daily Trading Goals


Markets instruments timeframes

Markets, Instruments & Timeframes

  • Decide which markets will you trade?

  • Which instruments will you trade?

    • Basket of shares / whole market?

    • SSFs / CFDs – Top 40 / Mid Caps?

    • Currency Futures – Currency pairs?

  • Which timeframes will you trade?

    • Day Trader – Minutes & Hours?

    • Swing Trader – Days & Weeks?

    • Position Trader – Months & Years?


Tools of the trade

Tools of the Trade

  • What financial vehicle will you use to trade?

    • Equities, Warrants, CFDs & SSFs?

  • What broker & trading platform will you use?

  • What Live Prices are you going to use?

  • Which charting software will you use?


Before the market opens

Before the Market Opens …

  • What is your daily pre-market routine?

    • Have you analysed yesterday’s trades?

    • Do you have any positions open?

  • What are the general market conditions?

    • What will you do today – hour by hour?

  • Which instruments are on your watch list?


Risk management

General Risk Management

Specific Risk Management

What is the probability of a successful trade?

What is the Risk-Reward ratio?

What is your risk per trade?

Where will you place your stop loss order?

When will stop trading?

Risk Management

  • What is your attitude towards risk?

  • What is the overall market risk?

  • What is the sector risk?

  • What is the broker & hardware risk?

  • What is the strategy risk?


Money management

General Money Management

Specific Money Management

Will you lock in profits?

How will you determine your position size?

Money Management

  • Large draw downs & profits

  • What will you do?

  • Which money management approaches will you utilise?


Exit strategy

Exit Strategy

  • Losing trades

    • Will you exit before your stop is hit?

    • Which signals will see you exit early?

  • Winning trades

    • Which signals will see you exit completely?

    • Which signals will see you close half?

    • Which signals will see you close the remainder?


Trade strategies setups entries

Trade Strategies, Setups & Entries

  • Which strategies will you trade?

  • What are your trade setups?

  • How will you find your setups?

  • Which signals will trigger your entry?


After the market closes

After the market closes …

  • Have you recorded today’s trades?

  • Did you execute your trades according to your trading plan?

  • Have you completed your trading journal?


Discipline

Discipline

  • Back test or forward test?

  • What are your promises to yourself?

    • What questions do you ask after a winning trade?

    • What questions do you ask after a losing trade?

  • What steps do you take to learn more about trading?


Golden trading rules

Golden Trading Rules

  • Protect & preserve capital!

  • Always set a stop loss, always!

  • Cut your losses short – Let your profits run!

  • Never chase your losses, ever!

  • Never average down, ever!

  • Trade what you see – Not what you think!

  • Keep excellent records!

  • Maintain discipline!

  • Keep it simple!

  • Plan the Trade – Trade the Plan!


Welcome to marketworx

The 3 M’s


Welcome to marketworx

“While a trading plan cannot predict the future, it can lay down how you react to the possible outcomes. This is why a trading plan is essential. It is a list of strategic responses to events beyond your control. You control the only thing you can control – YOURSELF!”

The 3 M’s - Mindset

Alpesh B. Patel [Author of the book “Trading Online”]


The 3 m s mindset

The 3 M’s - Mindset

  • Attitude - How you react

  • Self Confidence - Belief in yourself

  • Objectivity - Increase impartiality

  • Patience - Watching & waiting

  • Discipline - Stick to your plan


Welcome to marketworx

"The longer I live the more convinced I become that life is 10% what happens to us and 90% how we respond to it.”…Charles Swindoll

The 3 M’s - Mindset


The 3 m s mindset1

The 3 M’s – Mindset

Greed

Fear

Caution

Moderation

Greed

Fear


Welcome to marketworx

"The most important thing is money management, money management, money management. Anybody who is successful will tell you the same thing.“ Marty Schwartz

The 3 M’s - Money Management


Do not focus on making money focus on protecting what you have p aul tudor jones

"Do not focus on making money; focus on protecting what you have.” Paul Tudor Jones

The 3 M’s - Money Management


Welcome to marketworx

The 3 M’s - Money Management

  • Capital allocation (Position sizing)

    • For each trade, how much capital do we commit?

    • Trade with 80%- 90% of total capital

      • Earn interest

      • Variation Margin – Margin Calls

    • Position Size - Number of Contracts/ Shares

  • Setting stop losses (Technical stop)

    • For each trade, where do we place our stops?

      • Support & Resistance


Position size asa

Position Size - ASA


Position size margin ssf2

Position Size & Margin (SSF)

  • You have R100 000 in your SSF account

  • You decide to buy ABSA at R157.00.

  • You set a stop @ R149.00.

    • R157.00 – R149.00 = R8.00

  • You are willing to risk 2% of your capital = R2000.

  • Take R2000 & divide it by the R8.00 per share that you are risking

  • Your position size = you can buy 250 shares

    • (R2000 / R8.00)

  • The SSF initial margin required is R1725.00

    • 250 shares = 2 contracts = R1725 x 2 = R3450.00

    • Exposure = 2 x 100 x R157.00 = R31 400.00


  • Position size margin ssf3

    Position Size & Margin (SSF)

    • Initial Margin = R3450

      • R1725 x 2 contracts

    • Exposure = R31 400

      • 2 contracts x 100 shares x R157.00

    • Brokerage cost = R207.58

      • R31 400 exposure x 0.47% = R147.58 + R60

    • Target Price = R172.00

      • R160 + R12

    • Reward = R2 400

      • R12 x 2 contracts x 100 shares

    • Risk = R1600

      • 2 contracts x 100 x R8

    • Risk : Reward Ratio = 1:1.5

      • R1600 / R2 400


    Ssf trade asa

    SSF Trade - ASA


    Stop loss asa

    Stop Loss - ASA


    Technical stop loss strategy

    Technical Stop-Loss Strategy


    Step 1 setup price trigger

    Step 1: Setup Price (Trigger)

    Select

    Price Watch

    Enter

    Technical

    Price

    Select “Below” for Longs


    Step 2 setup stop order bullet

    Step 2: Setup Stop Order (Bullet)

    Select

    StopOrder

    Enter

    Quantity

    Select “Sell”

    Enter

    Worse-case scenario price


    Manage risk

    Manage Risk

    Big Profit

    Small Profit

    Break Even

    Small Loss

    Big Loss

    X


    Many know few do justin cohen

    “Many know, few do” Justin Cohen

    Marketworx


    Summary

    Summary

    • Five Steps to Choosing your Shares

      • Narrow down the choice (Watchlists)

      • Find Undervalued, Profitable & Safe shares

      • Find Trending, Oversold & Outperforming shares

      • Remember risk management

      • Start trading


    Conclusion

    Have you learnt how to “Make Money?”

    Feedback Forms

    Link to Marketworx presentations

    Will be available soon!

    Open a Trading Account with PSG Online

    Online Trading Course

    Equity & ALSI & ALMI Simulator

    Research Tools

    DataShare Download @R169 p/m

    Software is FREE!

    Good Luck & Happy Trading!

    Conclusion


    Thank you

    Thank You

    Contact Us

    [email protected]

    (011) 996 5200


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