So Greece gets saved again with more haircuts and bailouts and the end of the world is cancelled again, until it isn't. With a 24/7 news flow it is far too easy to get trapped into the minute details and miss the big picture; and the big picture locally is that a number of stocks were ridiculously cheap regardless of what happened to the EU sovereign debt crisis. As investors we need to lift our heads, ignore the noise and make decisions based on facts rather than fears.
Alwyn Burger did an excellent yet simple webinar for us last week on Selecting FX Trading Pairs. Most traders will have a preferred FX pair or two that they trade, but are they offering opportunity? Are there perhaps better FX pairs to be trading right now? Alwyn suggests a simple method to decide which to trade and which to ignore.
We have a packed week coming up, starting on Tuesday at 13h00 with a webinar on Trading agricultural futures and options. There are two great things about agricultural futures: they only trade 09h00 – 12h00,perfect for the lazy amongst us, and more importantly, they are uncorrelated to the other financial instruments we trade. The maize price doesn't care what's happening in Greece, it cares about rain, supply/demand, crop yields, etc. for the year. Now as traders we don't need to be farmers to understand it all, we just trade the price that moves independently from financial markets.
On Wednesday at 20h00 we have another webinar from our fundamental expert - Keith Mclachlan and he's venturing down the road of valuation models, starting with the basic Valuations: Price Earnings (PE) ratio. It may be basic but as the most popular model used for valuations it is critical we understand the methodology as well and the pros and cons.
On Thursday at 13h00 we will doing the Momentum Portfolio Q3 update that we've been running for 2011. This is the update for the end of Q3 2011. At the last update for end of Q2 2011 it was doing very well and beating our benchmark (the Top40). The beauty of this system is it's pure simplicity - buy the winners - and so far it's doing great, but the update will tell us if it's still working.
Tuesday 1st Nov at 1pm - Trading agricultural futures and options
Wednesday 2nd Nov at 8pm - Valuations: Price Earnings (PE) ratio
Thursday 3rd Nov at 1pm - Momentum portfolio - update Q3 2011
Thursday 10th Nov at 5.30pm - JSE Power Hour: Cannon Super Dogs
Week that was
Selecting FX Trading Pairs
Silent trading risks
It may still be October (sure late October) but Christmas decorations are already appearing and that means the mad hurtle towards a spending spree of note is about to start. While things are still calm, stop and take stock of your Christmas spending plans. What did you do wrong last year, how can you be smarter this year and perhaps most importantly - how can you spend less. No-one is going to begrudge you for looking after your financial state of being rather than going on an all out spending spree that sends your credit card into a state of shock. Maybe talk to family members about joint gifts, bring-and-share meals or even buying ETFs for the kids rather than over-priced toys that are typically forgotten before the summer heat has faded?
All the best