Willem de Klerk has been in the stock market industry for over 12 years, and he has assisted numerous clients with achieving success in the market, and making a lot of money. When he first started, he had onlyR30 to his name; Willem was determined to move forward regardless of the many challenges he faced both in his life and in business. He decided to focus on the stock market and educating himself on it. Dedication, coupled with drive, led to Willem acquiring his first millions on the Johannesburg Stock Exchange (JSE) market.
Willem started Generation Wealth three years ago and it has experienced incredible growth. People are always looking for the next best business venture or entrepreneurial opportunity; stock trading is a great business opportunity that has the potential to generate a healthy income. Since the stock market is constantly evolving, a stock trader will always be a student of it, never a master.
What is needed to become a Trader?
Being a trader is like running a business. You manage an inventory of stock, buy and sell this stock in order to make money. Now, in order to run this business, you need some tools. This is where we as Generation Wealth come in. We assume that you know little to nothing about the Stock Market. We want to take you from the basics of the Stock Market, step-by-step and with your effort and dedication, turn you into a successful, private investor.
If you treat trading like that of a business – managing profits and losses, you will remove the emotion from the action and make the decision-making process a lot easier and the end result more successful. Run it like it is your business. Before you begin, there are essential tools to the trade, as in any business.
Tools of the Trade:
Computer: Without a computer you are unable to do analysis or trade online.
Internet access: You need a good internet speed to use your trading platform.
Charting Analysis program: GW Explorer is an excellent technical analysis charting software program.
Data fee service: Your End of Day (EOD) data is provided by Easy Soft.
Online trading platform: Thebe Stockbrokers will introduce you to his online trading platform.
Broker: A dedicated broker will be allocated to you.
What Makes a Successful Trader?
The winning characteristic of a successful trader is the ability to successfully manage his money. The important question is how does one do this?
Plan your trades. Research the entry and exit points. Calculate your risk by way of the risk calculator, which is covered at a later stage in the course.
Stop your losses. Firstly, implement a stop loss to minimise your losses and secondly, adhere to the stop loss. You will be shown how to do this.
Protect your profits by adding in a trailing stop loss.
Exit when your position closes.
Why does one NOT adhere to these points?
Emotion, emotion, emotion.
Get over yourself, you are not married to the share.
You made a mistake – so what – get out – it won’t fix itself.
The Trading Instrument
There are number of instruments one is able to trade equities, Single Stock Futures, CFD’s, Indices, Forex, derivatives etc. At Generation Wealth our lectures and traders teach and trade the stock market and all its facets as well as geared instruments called Single Stock Futures, CFD etc. We will explain this instrument before you get to learn what the market is all about, what Technical and Fundamental Analysis is and how to apply this information to your decision-making process. Following this, we will show you why your technical analysis charting program, GW Explorer is such a fantastic tool. We will show you how to use it, what settings to use to do your analysis and how to set up your portfolio.
Once you know your risk, have the relevant system in place, have support via your broker, you are ready to trade. Until this time, your broker should be trading for you. Whilst you are equipping yourself – reading, attending lectures, and learning from your broker, getting to know your trading platform – he can trade for you. When you are confident to trade by yourself, advice your broker accordingly. When you open a trading account, the risks of the market are mentioned to you.
Remember, you are able to make money as well as lose money on the market. Refer to CM Trading, Risk Disclaimer or Trading Mandate.