Entering the JSE

**gordo** · 25-Oct-11, 03:37 PM

Thank you so much papsak. That is the only website I have found that gives you that hard facts, others just beat around the bush. this is gonna make things much easier for me.

**gordo** · 02-Nov-11, 09:31 AM

i been monitoring mr price shares lately, and i think its a good investment. but the fact is that you cant go into the stock market with only like a grand. the broker fees kill you. you have to enter with like 5 or 10 grand to really have a chance at making money. so for now im just watching from the sidelines.

**jjdewet** · 08-Nov-11, 12:17 PM

Hi Guys,

I just joined the forum and started fooling around when I found this thread...
I am a trader working at brokerage house in Pretoria. I'll list a few usefull websites below.

One important thing is that when you want to invest (6 moths + investment horizon) trading shares are the best. When you want to trade frequently, the cost of trading in shares will kill you. Using SSF (Single stock futures) or CFD's is the best for trading in the short term. SSF en CFD's are derivative products and are much more riskier than trading in the underlying share.

Usefull websites:

www.sharenet.co.za
www.moneyweb.co.za
www.cnbc.com
www.bloomberg.com
www.themarket.co.za
www.tradingeducators.com

I can also suggest a book by Edwin Lefevre - Reminiscences of a stock operator (based on the life on Jessie Livermore - Regarded as the best trader ever)

**gordo** · 08-Nov-11, 02:01 PM

thanx jjdewet, out of interest, how do you become a broker? what do you need to study?

**jjdewet** · 08-Nov-11, 02:20 PM

Originally Posted by gordo

thanx jjdewet, out of interest, how do you become a broker? what do you need to study?

B.Com would be preferable. The there are a lot of exams that has to be written to become a registered trader on the JSE. You can find details regarding this (RPE Exams) at www.saifm.co.za

**Mark Atkinson** · 09-Nov-11, 07:33 AM

Jjdewet - what sort of starting "capital" should one have should he wish to begin investing in the stock market? Both for long term investments as well as short term trading.

Also, what are the broker fees like?

**jjdewet** · 09-Nov-11, 08:46 AM

Originally Posted by Mark Atkinson

Jjdewet - what sort of starting "capital" should one have should he wish to begin investing in the stock market? Both for long term investments as well as short term trading.

Also, what are the broker fees like?

Starting capital for investing doesn't have to be a certain amount. But it is important to remember that there is a difference between trading (speculating) en investing. If you invest, you can buy shares on a monthly basis using a debit order, which is much the same as a retirement annuity, only, you get to decide where to invest it. Satrix is a good example of that. Starting this at an early stage, will provide you with some capital later on in your life for investing.

For trading, determining the amout of starting capital is very difficult, and will vary. I have always thought with R20,000.00 you can do something, but you can't really. Even R100,000.00 is not enough. The important thing here is Risk management and patience.

Brokerage fees vary and is usually charged as a % of exposure. So if you buy R20,000.00 worth of a share, fees will be a % of that. Ex: fees at 1% will amount to R200.00 in costs. This is only the brokerage fee. There are also a lot of other charges like STRATE, Investor protection levy, STT and VAT.

Brokerage fees vary from 0.8% - 1.5% maybe more depending on the broker.

**Mark Atkinson** · 09-Nov-11, 09:05 AM

Thanks jjdewet.

When investing in something like Satrix, what is the risk involved? Can i choose to make payments as and when I have the cash or does it have to be a regular payment?

Also, what is the return like in a long term investment in comparison to, say, a fixed deposit/money market account?

Do you get dividend payouts from investments like Satrix?

**jjdewet** · 09-Nov-11, 09:19 AM

Satrix40 is an index that replicates the Top40 index - which is waht people call "Blue chips". The only risk you have is that of the index going to zero, in which case you loose all your money. It is not a geared investment, so you can only loose what you invest.
You don't have to invest on a regular basis, you can buy it as when you have the money.
It also pays dividends.

Here is the link : http://www.satrix.co.za/products/satrix40.aspx

**Pap_sak** · 09-Nov-11, 07:59 PM

Originally Posted by gordo

i been monitoring mr price shares lately, and i think its a good investment. but the fact is that you cant go into the stock market with only like a grand. the broker fees kill you. you have to enter with like 5 or 10 grand to really have a chance at making money. so for now im just watching from the sidelines.

Mr Price is a decent share, and yes you do need to put down around R5K per trade to make it work, and even then, it should be a long term (5+) years before thinking about selling.

It it worth it. hell yeah, but only for the long term ie retirement.