About 1 people entered the competition aimed at familiarising South Africans with do-it-yourself investing on world markets through the domestic web-based trading platform. It is easy to buy and sell shares and other securities in New York, London and other markets using your foreign currency investment allowance. In order to invest an additional R4m each year, you will require the approval of the South African Revenue Service. Jacobsohn, an auditor who is studying towards a bachelor of commerce degree, tells BizNews that his strategy from the outset was to win the one-month challenge.
Jacobsohn says he always keeps up-to-date with current events, but did more research than usual with a view to looking out for trading opportunities. Scotland was voting to leave the UK. He says he saw that polls recorded a high number of undecided voters. The young investment enthusiast bought the pound sterling against US dollars and was proved right when the referendum results were announced. I thought that if someone beat me they would have to be trading something similar.
So, I used the fact that I had more money and took an exposure bigger than everyone else. Jacobsohn says he had been tempted by Alibaba, the biggest initial public offering ever on Wall Stree t. The competition winner says he would not invest the way he did when he competed in the Standard Bank Webtrader challenge. I took a gamble with gearing, because my idea was to win the competition.
First, though, he says he will complete his articles because getting his career on track is his priority. Jacobsohn, known to other traders as UrbanLegend, is the first person to be awarded the Webtrader trophy. The most popular instruments traded in the competition, she says, were: Forex or spot FX trading allows for the buying of one currency against the selling of another.
It is important to note that margin trading involves a large amount of risk. Trading involves more frequent buying and selling of favourites like CFDs and forex with the goal of generating returns that outperform buy-and-hold investment strategies, she points out.
I took maximum gearing. Currency trading enables you to make big money fast. You can lose money trading in global currencies very quickly, too. A primer Forex or spot FX trading allows for the buying of one currency against the selling of another.
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