Two common misconceptions regarding the Stock Market (JSE) are that its only for rich people, &/or you need a lot of money to start.
“Knowledge is power” is the underutilized adage that applies here. The more you know & understand the easier it is too make money from the Stock market.
Lets look at just one example of how the Stock market is used by the banks.
You have for example R10,000 invested at your bank. (savings account fixed deposit etc)
Average return today varies between 5% & 8%. Lets use 7% for our example.
So for the year you will earn R700 in interest from your bank.
Now the bank takes the money (your R10,000 savings) & uses it to trade on the Stock Market.
Lets say you are with South Africa’s best performing Bank Capitec.
And Lets say they invest in their own shares. Using the latest figures I have available Interim results August 2017
The following would apply on the premise that you follow the standard rules of trading in that you buy low & sell High.
Buy Capitec low@ R707.96 therefore 10,000 divided by 707.96 equals 14 shares
Sell Capitec high @R909.94 multiplied by the 14 shares equals R12739.16.
Now deduct the starting capital of R10,000 & you are left with a profit of R2739.16
What has to be understood here is that this is how traders works. (Banks, Financial institutions etc) & that my example uses ONLY one trade.
You could do multiple trade per day let alone per year.
We offer an entire 14 modules of information to teach you all you need to know to become a successful trader.
Included in the package are the home study course & software that tells you when to buy & when to sell, newsletters, tips, recommendations & ongoing tuition.