Where to start?

“Where do I start” is the right question to ask as you approach any new project. But when it comes to investing, people often run away from it because it feels overwhelming. Oftentimes, not knowing where to start, they are afraid that they might lose their hard earned money.

The truth is, investing in the stock market can be as easy as 1-2-3.

1. Open an equity trading account. Click here.
2. Make sure you know what share(s) to buy and how much to buy (you can subscribe to Chris-tell for R99 per month and we can help teach you how to manage the risks). Remember, risk management is a key ingredient to becoming a successful investor.
3. Make sure the broker (the people you have an account with in Step 1) are registered with the JSE.

An equity trading account is a type of account that will allow you to buy shares or ETF’s (exchange traded funds) on the JSE (Johannesburg Stock Exchange). You will deposit money into that account once it is open and then you can buy and sell as you please. Remember, you want to have the account in your own name where the “buck” will stop with you and you only, literally!

The first thing investors do wrong is they buy too much of one share. We teach a Chris-tell model of how much of a share to buy that allows you to manage your risk in such a way that it can’t wipe you out and you don’t have to worry about taking a stop loss.

A stop loss is a line in the sand where you take your loss when the share reaches that price. The problem often with a stop loss is as soon as it hits that level, the share sometimes turns-around from there, leaving you frustrated and angry because now you are out. We therefore teach a Chris-tell model where our entry levels are small enough that we can add to the position at the right time.

The reason it is important to use a registered broker of the JSE is to ensure the necessary compliances and rules are adhered to. You also want to make sure that there are people keeping an eye on your broker so you can sleep peacefully at night.

Remember, here is ALWAYS risk involved… who thought Steinhoff would plummet to R1-30 a share? And investing on the stock market can be VERY risky, but if your position is small enough, it makes the risk-factor more manageable and easier to control.

Anyone can do it! Yes, anyone.

If you are keen to learn, have perseverance and aspire to grow your wealth, then this is a skill you need to master!

Chat soon,

Christelle