Podcast: What do you trade? Why?

In JSE Direct, Latest by Simon Brown

What do you trade? Why?

What do you trade? Why?

Simon Shares

  • Woolies* (JSE code: WHL) share price is under pressure hitting 12 month lows on Monday. Recession is hurting them as high LSM consumers shop down and even Australia is struggling economically. The winner here will be Shoprite* (JSE code: SHP) as they cater for mid/low LSM consumers and will pick up Woolies shoppers.
  • Index changes effective Monday 19th. Only changes from the main four indices is Capitec* (JSE code: CPI) into the Top40 and Implats (JSE code: IMP) exits.

* I hold ungeared positions.

What do you trade? Why?

When I ask people this question I generally get a surprised look as if it is a stupid question and the answer is generally CFDs. The follow up question is always – why do you trade them? Here the answers get garbled because there is seldom a good reason.

We need to be strategic about what we trade. There are differences between; shares, indices and FX. Different funding, risks, costs, spreads and more. We need to understand what they are and trade those that best suits trading in general and our trading specifically.

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JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

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