Petri Redelinghuys of Herenya Capital Advisors gives his advice regarding investing and decision-making in uncertain times.
“What do I do?” is a very common question in one form or another, and it’s one that’s nearly impossible to answer, as it requires one to have intimate knowledge of another’s conditions, before answering it with any certainty. However, there are a few tips we can give, so you have the tools to analyse and decide for yourself.
1: Have A Cash Buffer
It’s important to have free money on hand for a number of reasons. For one, it gives you the ability to act immediately when you see a good opportunity to invest in something. Another benefit of having liquid money is that it can help you stay afloat, or at least reduce the sting when you take a financial hit.
2: Don’t Chase Fads
It’s equally important not to get swept up in trends if you’re not familiar with them. Our recommendation is to invest in sectors or stocks you understand to be undervalued, and avoid investments that rely on a temporary event or trend -such as the current war in the Middle East- for long-term success.
3: Take The Money
If you see an unusual success in a part of your portfolio, don’t be afraid to cash out! Selling too early is a common concern, even amongst seasoned traders, but it’s important not to take unnecessary risks. If you see one of your stocks experience massive growth, it might be better to sell before the peak than to risk selling too late and giving it all away; you’ll have cash in hand, and you’ll be able to invest when the next opportunity shows up!
The magic happens in our community!
We’re posting on TradingView, we’re posting on our blog… but the real magic happens in our client community where you can get access to our ideas as they develop. So, open your account and join us and start taking advantage of South Africa’s Top Broker for both Active Traders and Traditional Investors. We have a Discord server, with a Daily Morning Call at 08:30 (Monday – Friday), where our Trading Strategist shares market updates and posts information with the Community. If you are not trading with us yet, what’s stopping you?
*Please note that these trade ideas form part of a larger weekly plan and the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. The risk of loss arising from trading in Contracts for Difference can be substantial. You should carefully consider whether such investments are suitable for you in the light of your circumstances and financial resources.
