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3.9 magnitude earthquake hit Klerksdorp

3.9 magnitude earthquake hit Klerksdorp

A 3.9 magnitude earthquake hit the Klerksdorp area in North West on Friday night, the Council for Geoscience said. Spokesperson Mahlatse Mononela said it struck at around 20:23 to the east of Klerksdorp. Residents, who took to Twitter, described it as strong. Further information was not immediately available. Last year, a series of quakes shook parts of the country, including Cape Town. The…

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Jerry Mononela - Bear v/s Bull Markets: A Simple Guide For Understanding Stock Market

The craze for finance in today’s population is exciting, and sensationalism has entered the finance sector of the global market. Pin it on cultural developments through films or TV, or through a general sense of being financially sound across the population, everyone wants a piece of the stock market.

Many believe that the stock market is a gold mine where you can get rich quickly while many believe that stocks are the trajectory followed when money is flushed down the drain. Well, Jerry Mononela (that would be me) is here to tell you that the precious stock market is neither. It is a fast-paced, predictable yet unpredictable mechanism that needs to be studied properly. A well understanding of such a complex mechanism is necessary to get the most out of it. And that is what most people forget.

A proper understanding of the stock market would be ideal but a person who wants to invest his finances however small simply must have some technical knowledge of the world he is about to enter. That’s why I, Jerry Mononela, will start a simple guide for beginners looking to become an ‘investor’ to get a proper grasp of the oh so popular stock market of today.

And first things first, an investor must know about the two most popular types of markets over the years: The Bull, and The Bear.

The Bull

Oh the bull, the lovely, supercharged bull. A bull market is a market that lays low in its formative years only to charge up when it has matured. The development of a bull market on its graph eerily simulates how a bull attacks, charging from the down low to the top.

Though the etymology should be enough for an investor to understand how the market works, let’s just for the sake of it, mention some technical terms as well. In a bull market, the stock value increases by a value of 20 percent over a significant period in the lifetime of the stock.

In the initial phase of the bull market, the stock price is extremely low but is speculated with a high promise by investors and stockholders. It is often categorized as an optimistic market as investors get their exponential profits after a long period.

A typical bull market averages over about 9 full years and generates an average of 480 percent gain for the initial investors, which makes it an avenue to incur short term losses to generate long term profits.

The Bear

The bear market is termed as such because a bears attack from up and then go charging down. Prices in a bear market are volatile and tend to fluctuate a lot, but mostly on the downside. Bear investors usually invest early on and sell after a short time believing prices will continue to go down.

This trend in investor psychology of thinking stocks will go down leads them to sell their share even at a lower price as soon as possible to stop further losses. This in turn again leads to the stock crash as more and more investors start to believe that their stock will become worthless, so the company spirals into recession and starts laying off workers resulting in a mass financial deficit in the general population: how an economic crisis starts in a country.

It is not called a bear market if the stock prices go down a bit for a period. For a market to be officially called a bull market, the stock has to fall by a 20% decrease when compared to the most recent peaks in the graph.

Bear markets usually have lasted about 1.4 years on average throughout history and end in a net 41 percent loss for investors. This characteristic of a bear market is what makes it much less investable in the eyes of investors who prefer to ride the bull to get a long time, low risk, high reward return on their money.

How Bear And Bull Markets Compare Over The Years

A bear and a bull market come hand in hand if you look at the market timeline from over the years. A bull market is succeeded by a brief but disruptive bear market. We were currently in the longest-running bull market in the history of the stock market but due to the coronavirus crisis, many stocks have declined significantly while the USA is officially in recession.

Since 1929 there have been 25 bull markets but only 9 bear markets, proving that bull markets are more popular than bears and have brought on significant change for investors and society alike. But investors don’t profit from only a bull market, there are many clever ways for an investor to take advantage of a bear market as well.

How Do Investors Act In The Market

Though there is no definite strategy of how investors work in a bear and a bull market, here is a simple timeline to go through to understand what the typical investor psychology consists of.

Start of a bull market- investors put their money on a long term strategy hoping to get a high reward as they believe stock prices will go up.

The peak of a bull market- investors are looking to sell their stocks at a high price and get an excellent exit as they believe it is the peak of the market.

Start of a bear market- A crisis occurs or investors start believing that a crash might be coming, they sell their stocks to sit on cash instead of stock as assurance. This leads to more and more investors panicking and selling the stock at a lower rate to not incur further losses, and subsequently, the market crashes due to extremely low trading rates.

End of a bull market- investors are looking for a low-priced stock that will reward them with benefits in the future and thus a bull market starts to develop again.

That is a very brief and simple summation of what bull and bear markets are, their timelines, and the psyche of investors during different markets. If you would like more details about the stock market, book a consultation with me, Jerry Mononela on my website. I provide financial advice on stock markets and investors alike in and around South Africa.

If you liked this blog check out more of me at my Reddit and read up more about angel investors and how to poach them here.

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What Is An Angel Investor & How To Get One For Your Startup

 Suppose you have an idea that you think could change the world, and bring you and your partners a lot of money at the same time. So you start a company based around that idea and develop your product further. But after some time you realize that as much as the company is yours and you are willing to work on it till the world’s end, you alone don’t have the resources to give a proper physical form to your idea. So instead of feeling dejected and giving up, you bring in a person who has the resources to bail you out of your fix. This person is called an Angel Investor.

The first round of raising capital that helps you build up your company from scratch and bring it into the real world is called the Angel round of investment. And as the name suggests, an Angel Investor is someone who invests in you in this Angel round.

 The reason why the term ‘Angel’ is used instead of something like ‘the first investor’ is that most venture capitalists are reluctant in investing in companies during their baby stages. At the initial stages of a startup, most companies don’t have much momentum and their direction keeps on changing, and that’s something big venture capitalists don’t look forward to. An Angel Investor puts out seed money usually in return for ownership equity or sometimes convertible debt.

 These types of investments are risky as the chances of a startup failing is high, that’s why most angel investors are wealthy individuals who are looking for a higher and quicker return rate for their money.

 The above all is just information on what Angel Investors are and what do they do, which you can easily look up online. But the primary focus of a startup that is looking for their first round of investment should be to get to know the networks of Angel Investors and get the right type of Angel for them.

 How To Identify A Good Angel Investor?

Since there are no hard and fast rules for being an investor, (no degree is required to become an investor!) you should focus on the profile of a person to determine whether he/she is a good Angel Investor or not.

Typically an Angel Investor is a middle-aged person (40 to 60 years of age) who has a net worth of more than 1 million USD. They are known for investing in small start-ups and companies and have the capability to invest more than 50k USD in a business. Mostly Angel Investors are businessmen themselves and have multiple businesses set up throughout their industry, giving them enough experience to guide you and their investment in the right direction. The typical involvement of an Angel Investor in a startup lasts for 5 to 6 years, although some might be looking at a much faster return from a cash cow business. 

As said earlier, the above qualities need not be taken as absolute rules that need to be followed, but more as helpful, probable guidelines. Traditional investing methods are going down, and with it, the number of traditional investors is going down too. 

Where To Find An Angel Investor?

Well, as everything in the slowly moving modernized world, there are two ways to find an Angel Investor:

The Traditional Way

The Modern Way

The Traditional Way

Many businessmen, small and large, are Angel Investors themselves. So taking part in your local business communities would be a good way to find out what type of Angel Investors are available in your area. Most Angel Investors want to invest in a local business as it gives them a more hands-on approach, and this is better for your startup too as your investor is within hands reach if a disaster occurs or you need strategic advice.

Attending business fairs and trading events would help you network a lot too as most Investors are present at such meetings. It is very important to get you and your company’s face out there as surprisingly investors are only willing to give away their money to companies that hustle to go big. Step out, make connections, and build up your network. An Angel Investor looks for a dynamic company that can make him/her money, instead of a company that just takes his/her capital and flies with it.

The Modern Way It should be of no surprise that in 2020, in the age of smartphones, where you can find anything and anyone online, you can find Angel Investors online too. 

Angel Investors can be reached out solo on business platforms like LinkedIn as well, but contacting them on websites made specifically for angel investing is easier and more reliable as most Angel Investors like to work around their own network.

Some of the websites that have worked well for other start-ups in the past are:

●     Angel ListSeed Invest

●     Onstartup

●     NEXA

●     Golden Seed LLC

These online platforms offer a quick way to build up your investment network and get the right type of Angel Investor for your startup. Although traditional ways and modern ways bring the same end result, each has its own pros and cons. Traditional ways of bringing in Angel Investors help you build up a more organic network that is comparatively stronger than an online network, while the modern ways bring you far more reach than your local business community can ever give you. In the end, it all depends on you and which route you want to take to get an Angel investment to propel your company forward.

Who Is Jerry Mononela?

Jerry Mononela is a businessman cum Angel Investor in South Africa, and has an insatiable thirst for the stock market. I advise people on investments and educated novices about finances so that they can guide their money better in this cut-throat environment. I also write articles on finance and investment tips.

If you liked this article on Jerry Mononela, check out more of me on my blog and Reddit.

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How To Invest In the South African Stock Market During The Pandemic By Jerry Mononela

Investing your hard-earned money is a risk that is scary in normal life, but much more so in a global onset of a killer disease. The Coronavirus has impacted businesses and companies both huge and tiny alike. A lot of people have lost their jobs and large corporations are undergoing downsizing. So where do you stand in such a volatile market, a person looking to invest their savings, hoping to get a decent return?

Naturally, the first thought that would come to your mind in the yesteryears of Corona would be to invest your money in various firms that have comparatively low risk and higher return rates, right? Well, what if I told you that the same thought process is still valid in a pandemic?

Some of the most common mistakes that people make while investing are:

Not knowing enough about the industry they want to be involved in.

Not assorting their investments properly.

Not assorting their investments at all.

 So the first thing you have got to learn is the market you want to invest in. You have got to have enough information about the firms you want to invest in, their past performance, their plans, and the return that other investors have got in the past. You would be surprised to know how much a little amount of research can do for you!

The next thing you have to do is to assort your investments. ‘Don’t keep all your eggs in one basket’ is an age-old phrase for a reason. But just randomly investing in different ‘baskets’ won’t amount to anything. Smart investments are what will make you money and then some. One common example would be to not invest in a similar stock. You would think that you are playing it safe but it’s quite the opposite.

When you look at the bigger picture, you’d realize that investing in similar stock would increase the chances of you losing your money as your investment wouldn’t help any company in particular. This would mean that the only way your stock in any one company going up would be on a fluke. And you don’t want to invest your money on a  fluke; a risk, yes but not a fluke.

But all of this doesn’t matter if you don’t know where to invest your money. So in this post, I’d like to inform you about some industries that are thriving despite the pandemic and how you can place a safe bet on any of them.

Online Businesses

It is no surprise that online businesses have not been affected by the Coronavirus but are booming due to people now ordering most of their stuff online. Even if we disregard that change, online businesses are businesses that don’t get affected by the lockdown or social distancing as most of their products or services are delivered through the internet. So investing in online businesses during a pandemic would be a strategic decision as these businesses will continue to thrive even after things normalize. 

But as is with every type of stock, stock of online companies also comes with risks. Server collapses, hacker attacks are only some of the things that can bring an online business down. So as mentioned earlier, do your research and invest in the company that you think would yield the maximum benefits with lower risks.

Delivery Businesses

It is of no surprise that delivery and subscription-based businesses are booming in the pandemic in which every place is enforcing social distancing. People want to have less and less contact with objects that change hands. That’s why investing in a local delivery business or an online subscription-based business would be a smart decision to get a quick return from your sum.

But while investing your hard-earned savings, you should also consider longevity. Delivery and other subscription-based businesses will bloom in the pandemic and will continue to do so long after the situation comes under the control as people will get accustomed to convenience. The factor of convenience plays a major role in online businesses that more and more people are experiencing in the lockdown. This will make a large chunk of the user base recurring customers and ultimately yield more profit for the company.

But all of this depends differently on different types of services that a business offers. Groceries and essentials deliveries are popular now but would decline when there is no need for social distancing in the slightly distant future. So do take your time and research about subscription and online businesses booming in the pandemic and invest accordingly.

Content Creation

The one thing that is considered non-essential by most people but is one of the most essential businesses of all humankind is the entertainment business. We have seen a content boom because of the pandemic and more and more companies are on the look for content that can be published online. 

Content creation comes under various forms whether it be blogging, making videos for YouTube, or marketing on Instagram. But the most important thing about content creation is that everyone needs content. Businesses needed content and online marketing before and they need it now much more than ever. Investing in an online marketing company would be a sound decision as we move towards a world that is ruled by technology and the internet is the biggest marketplace.

Traditional marketing was steadily being pushed out by online affiliate marketing but the pandemic has made that push that is making online marketing the next big thing. So invest in a company that provides a platform for online marketing to their clients because that is the direction the world is moving in.

All in all, it all depends on what you want to do with your money. If you want longevity, it would be wise to invest in online businesses and content creation as these types of businesses were already moving towards being big but have jumped a big hurdle because of the pandemic. 

Delivery businesses would get you a decent return on your investment in a comparatively lower time as they are growing in the pandemic but would slow down as the vaccine rolls out and people start going outdoors.

The most important thing to do would be to do your research and making a well-thought decision. Jumping the gun helps no one, especially while investing in the stock market.

Who is Jerry Mononela?

Jerry Mononela is a freelancer that offers accounting services in the city of Tshwane and has a passion for finance and the stock market!

Jerry Mononela like to write articles on stock marketing investing tips to help out a complete novice in the finance industry. If you liked this blog and found it helpful, check more of my articles here.

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Jerry Mononela - How to invest in the stock market | South Africa

I’m Jerry Mononela from South Africa. I have 15 years of experience in the stock market. I’m sharing with you the best tips for “How to invest in the stock market”. I’m revealing my best six tips which help you to understand the stock market investment strategy. Investing in stocks is an excellent way for wealthy growth. Investment secures the present and future long term finance. Investment means making your money work for you. A stock or you can say equity is a security that speaks to the ownership of a particular portion of a Corporations. This entitles the proprietor of the stock to the extent of the company's benefits and benefits equivalent to how much stock they own. Every unit of stock is called “Shares”. Stocks are purchased and sold dominatingly on stock trades, however there can be private deals also, and are the establishment of numerous individual speculators' portfolios. These exchanges need to adjust to government guidelines which are intended to shield speculators from false practices. Investors don't possess partnerships; they own offers given by companies. However, enterprises are a unique kind of association in light of the fact that the law regards them as lawful people.

How does the stock market work?

The thought of investing in stocks comes to mind, but you’re scared to do investment in stocks because of the risk of losing money, you are not alone. People with zero experience in stock investing are either terrified by horror stories of the average investor losing 50% of their portfolio value. Actually putting resources into the securities exchange conveys hazard, yet when drawn closer in a trained way, it is one of the most proficient approaches to develop one's total assets. There are two primary kinds of stock—common stock and preferred stock—the expression "equities" is inseparable from common offers, as their joined market value and trading volumes are numerous sizes bigger than that of preferred offers.

The costs of offers on a securities exchange can be set in various manners, yet most the most widely recognized route is through a bartering cycle where buyers and sellers place bids and offer to purchase or sell. A bid is a cost at which someone wishes to purchase, and an offer (or ask) is the cost at which someone wishes to sell. At the point when the bid and ask agree, an exchange is made. The general market consists of a great many investors and traders, who may have contrasting thoughts regarding the estimation of a particular stock and hence the cost at which they are happy to purchase or sell it. There are a great many exchanges that happen as these investors and traders convert their expectations to activities by purchasing and additionally selling a stock reason minute-by-minute gyrations in it throughout an exchanging day. A stock trade gives a stage where such exchanging can be handily directed by coordinating buyers and sellers of stocks. For the normal individual to gain admittance to these trades, they would require a stockbroker.

How to invest in the stock market tips:

Decide how you want to invest in stocks

There are a few different ways to stock investing. Building a viable trading strategy requires having an away from your financial goals. This ought to incorporate knowing your risk tolerance, determining your short-term and long-term financial needs, and seeing how trading can enhance your portfolio. 

Regardless of whether you're simply beginning or hoping to advance your existing strategy, it's essential to invest some energy dissecting these variables and determining the methodology that feels fitting to your conditions.

Open an investing account

Simply speaking, to invest into stocks, you need an investment account. For the hands-on types, this normally implies an investment fund. For the individuals who might want a little assistance, opening an account through a robo-consultant is a reasonable alternative. We separate the two cycles beneath. A significant point: Both representatives and robo-consultants permit you to open a record with almost no cash — we list a few suppliers with low or no record least beneath.

Know the difference between stocks and stock mutual funds

stock market investing means choosing among these two investment types:

Stocks:

When you buy a stock, you own a share of the corporation. As a partial owner, you make money in two ways. The first income you're likely to notice is a dividend payment. Stocks that offer dividends will pay out part of their profits to shareholders on a quarterly or annual basis. That provides a steady stream of taxable income throughout the time that you own the stock. The second way to make money from stocks is to sell them. Your profit is the difference between the selling price and your purchase price (minus any fees such as commissions). Profiting from the sale of a stock is a form of "capital gain." Stocks trade continuously, and the prices change throughout the day. If the market crashes, you can get out anytime during the trading session.

Stock mutual Funds:

Essentially mutual funds are when investors pool together their money to buy a lot of stocks (mutual funds can also include bonds or other securities, depending on the fund). You own a mutual fund share, which entitles you to a proportional share in the underlying basket of securities. The proportional ownership is reflected in the price of each mutual fund share, known as the net asset value (NAV).1NAV is the total value of all the securities the mutual fund owns divided by the number of shares. An investor can place an order for mutual fund shares at any point during the trading day, but the order won't execute until the next NAV adjustment—usually at the end of each business day.2 That makes it difficult to control your buying price, especially when the overall market experiences extreme volatility.

Set a budget for your stock investment

The measure of cash you have to purchase an individual stock relies upon how costly the offers are. In case you're investing through funds — have we referenced this is our inclination? — you can designate a genuinely huge segment of your portfolio toward stock funds, particularly on the off chance that you make some long memories skyline.

Focus on the long-term

The best activity after you begin investing in stocks or mutual funds might be the hardest: Don't take a glance at them. Except if you're attempting to beat the chances and prevail at day exchanging, it's acceptable to maintain a strategic distance from the propensity for enthusiastically checking how your stocks are getting along a few times each day, consistently.

Manage your stock portfolio

On the off chance that your portfolio is excessively vigorously weighted in one division or industry, think about purchasing stocks or funds in an alternate part to assemble more expansion. At long last, focus on geographic broadening, as well. Vanguard suggests worldwide stocks make up as much as 40% of the stocks in your portfolio. You can buy worldwide stock mutual funds to get this presentation.

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Jerry Mononela- Basics of SIP

I Jerry Mononela and sharing with you basics of SIP. SIPs or systematic investment plans are becoming the most popular things in the investment market these days. All brokerage firms as well as some mobile investment applications, something that we talked about in the previous post, are offering SIPs to their user base.

We all have heard the amazing stuff about SIPs in the ads, but they give very little information on what SIPs are. So in today’s blog post, I will be guiding you through the basics of a SIP.

What Is A SIP?

First things first, an SIP is a Systematic Investment Plan. And according to its name, it is a structure that is designed to systematically invest funds taken from your account either over multiple ventures or concentrated towards one.

A systematic investment plan can take funds from an account set up in your name and it can be a mutual fund, trading account, or a retirement account. You would have to transfer funds into such accounts over a fixed period that is decided by you. The returns from such accounts would be small but accumulate into a large sum across a long period.

That is the selling point of a SIP.

How Do SIPs Help Me?

Well, just like any investment plans, there are no guarantees when it comes to SIPs, though SIPs are considered less risky than other investments as they give you a return by accumulating small profits over a long time.

That is the selling point of a SIP. They are much safer than other investment options and don’t require a hands-on approach. They are helpful for people who want to invest small amounts of money regularly and have the assurance of a return after a significant period.

How Do SIPs Work?

Systematic Investment plans work actually on a very simple concept that is hoohaa by financial advisors. The concept is called DCA or Dollar Cost Averaging. DCA means that an investor buys a stock at a fixed amount regardless of the actual market value. That enables the investor to buy stock either at a profit when prices are up or for a loss when prices are down.

SIPs are different from regular investments as investors continue to pay funds to their mutual fund or trading account through all the ups and downs instead of cashing out when the stock is highly valued or cashing in when the stock is low valued.

SIPs work in the favour of the investor as the market is often frisky. The stock value goes up and down quite regularly. So instead of solely focusing on cashing in and out, a regular person can get a SIP and see a significant return in the future by paying small, regular amounts of money continuously.

SIPs get the investor a return in small amounts in exchange for a fixed investment that results in a huge sum after a long period.

Put in simple words, that is how SIPs work.

What Are The Benefits Of SIPs?

If I am being honest here, SIPs are the best option for any person who doesn’t have that much knowledge of investing and wants to invest a comparatively small amount with a much lower risk. And that is what SIPs provide you.

They take in very little capital. That means that there is no hurry or tension to get in funds for your investment account. For SIPs, you just have to ensure that your funding account has enough money to make the monthly or weekly payment that has to go out.

They have a fixed capital. In SIPs, you fix a capital at the start of the term. And that is the amount that will be taken out of your funding account till the SIP gets over. This helps in not worrying much about how your stock is performing as you would only see a significant change in the future.

They reduce investments. SIPs on average save a lot of money for the investor. Since they are comparatively a safer form of investment and work with fewer funds, SIPs increase the return per investment ratio for you.

What Are The Disadvantages of SIPs?

SIPs are great for a newbie who is looking to invest his monthly savings safely, but they do have a lot of predicaments that might get in the way of future investments.

SIPs require long term funding. That means if you have a SIP you have to keep investing until the fixed term for that SIP is over. This leaves less flexibility for other investment plans.

They have heavy penalties for early withdrawals. Since SIPs work systematically for a long period, early withdrawal from such plans is often carried out with hefty fines. So SIPs have the benefit of low risk and high return after a long time, but you have to be committed throughout.

Are SIPs Worth It?

To be honest, SIPs are a great option for a person who does not have too much knowledge about the stock market but wants to have a try at investments anyway. SIPs are a great option for that as they are very low risk and high returning.

The only catch is that in a SIP the investor has to be committed over the long term. So if you can handle funding small amounts of money over a long course and are a newbie in the field of investment, then SIPs are a great option for you.

Different brokerage firms have different SIPs and I would recommend checking all of them out and comparing them lucratively. Choose the one that suits you the most and then go for it. SIPs turn out great for the majority.

About Jerry Mononela

Jerry Mononela is an accountant who offers financial advice in and around the city of Tshwane. If you liked this blog check out more down below and follow us on our socials!

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Jerry Mononela - 5 Best Mobile Apps For Investing In The Stock Market

I am Jerry Mononela and sharing with you the five best mobile apps for investing in the stock market. Trading has become a norm among the young population through its extensive digitalization. Whether it be through websites or apps, trading in the national, as well as international stock market, has become infinitely more convenient. Through the course of letting the stock market be traded upon by small, individuals looking to invest their savings in a few points, trading has taken many shapes to appeal to the consumer. And it appears that with the advent of digitalization, even stock market trading has reached the palms of the small consumer with complete transparency. And this transparency has been brought on by none other than mobile trading applications. These applications run just like every other application on a smartphone. You either register or log in and after setting up your details in your profile, you are ready to go! With the click of a button, you can now invest in your any company’s stock within your smartphone sitting right at your home! The future is finally coming. Though trading through mobile applications sounds simple (and it is), there are many apps out there to trade your life’s savings on. And as scary as it sounds, there are many fake applications on the play store that are unwarranted. To give away not only your money but also your details, you should always look for an app with credentials and a proper back story. This is the most important aspect of a mobile trading app. In addition to security, there must also be simplicity in the app. A simple UI helps a novice to not be scared away! It is essential in a trading application to implement transparency and improve the user experience that the mobile application was built for. So in this blog post, I have come up with 5 simple mobile trading apps, trusted, and thus the best option to mobile trade on. If you like my posts, check out more of my content on Reddit as well: Jerry Mononela. 1.Interactive Brokers Interactive Brokers is one of the most popular mobile trading apps in the market, and that is for a reason. It is a clear cut mobile trading app that requires no minimum balance, 0% share if you have the INKR lite membership, 1% otherwise, and an option to monitor the market as it is. The Interactive Brokers mobile app is essentially a condensed form of the desktop website and is very simplistic for new users. Though it lacks some major features like multi-device functionality and drawing tools, it is a perfect companion for a beginner trader. The research charts, the quick settings, and the ability to make swift decisions are the reason why I think the Interactive Brokers mobile apps beat out its flaws AND its competitors. It has zero minimum requirement for your account and takes away the standard maximum of 0.005$ or 1% for their pro platform, and a minimum charge of 1$ for their free users. 2.TD Ameritrade Ameritrade is the second app I would recommend for beginners. It has a lot of users and has proven market experience. It has no commission rates, hidden fees, and has better investors on its platform. Ameritrade is the most popular investment in the play store for a reason. It has transparency built-in for its users, something that is vital for any online trading platform. TD Ameritrade has proven to provide great products for its customers and has been termed the #1 brokerage firm by many, many credible sources. So Ameritrade is quite possibly the safest option out of all the other trading apps. 3.Acorn Now that the two most convenient options are out of the way, I would like to mention some of the beat mobile investment apps that target the alternative markets more. And Acorn is the perfect example of that. Acorn is a mobile investment app that simply gives you an option to invest your spare change every time you make payment. Supposedly the bill is for 2.98$, then Acorn asks you whether you would like to invest 2 cents into stock and round off the bill for 3$. This happens every time you purchase something and can add up to a lot of value. It is the perfect app for students who have very little cash but want to start investing anyway. Acorn is a solid online investment app and has proven its market share multiple times in the past. So if you don’t have that much money to invest, Acorn might be the app for you. 4.Robinhood As the name suggests, the Robinhood app focuses on the consumer more than the actual brokerage like the majority of online platforms do. Robinhood offers zero brokerage and commission fees. There is a 0$ account minimum which essentially eliminates all the costs that are associated with online brokerage platforms. That is why Robinhood is the best investment app for consumers that are just starting to invest in the stock market. Though the absence of tax relaxations is a big bummer. You have to manage your investments yourself and there are no managed portfolios. 5.Stash Stash is THE app I would recommend for beginners in the stock market that want to jump in directly with their investments. Stash is a well-rounded platform that provides all of the features of a brokerage firm and some more in a small mobile application. A user can get brokerage and retirement accounts for only 3 dollars a month on the Stash mobile app. Though the platform is quite expensive and has fairly limited options, Stash is a very good choice if you want to start your investment journey conventionally. A very good app for people who want to start investing right away. About Jerry Mononela Jerry Mononela is a freelance financial advisor and accountant based in the city of Tshwane, South Africa. Check more of such posts on Jerry Mononela, and follow my socials: YouTube, Reddit, and Vimeo.

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JERRY MONONELA – What is Stock Markets

Share Trading Basics

 Introduction:

Owning shares is one of the greatest tools to wealth creation you can find. Shares, apart from owning fixed property,

should form the cornerstone of any investment portfolio. You do however need a firm understanding of the stock market

basics before dipping your toes (and your money) into the sea of opportunity which is the stock market.

It is like having a business but not having to show up at work.

The interest of the average Joe has grown exponentially in the last couple of years. This can be attributed to the flow

(mostly freely accessible ) of information on economic affairs and stock specific

news. What was once a toy of the wealthy has now turned into the vehicle of choice for wealth creation. Technological

advances has put the opportunity of trading the stock markets at your fingertips wherever you might be.

 What are shares?

A share is simply what it’s name suggests - you share in the ownership of a company. It represents a claim on the

company’s assets and earnings. It is sometimes called stock, equity or shares but they all mean the same thing.

Holding a company’s shares means that you are one of the many owners (shareholders) of a company and have claim to

everything it owns. This claim is usually very small but you are entitled to your portion and hold your voting rights.

Shares were held in certificate form but electronically held shares have become the norm. All South African shares are

held by a CSDP (Central Securities Deposit Participant) in electronic format.

This makes it far easier to trade the shares at the click of a mouse button. Share certificates had to be taken to the broker and then to the transfer secretaries which made it and arduous task.

Being a shareholder does not give you title to the day-to-day running of the business. Your extent to which you have a say

in the company is limited to one vote per share at annual meetings where you vote for the board of directors. Being a

shareholder of South African Breweries does not entitle you to walking into their plant in Rosslyn and helping yourself to

a couple of beers or calling the Chief Executive Officer to share your ideas on how they should run the company.

Large institutional shareholders have the biggest say in the appointment of management and they have to increase the value of the company for shareholders.

Profits are shared in the form of dividends. Your claim on the assets is only relevant should the company go bankrupt.

An important feature of owning shares is your limited liability should the company not be able to pay it’s debt. No matter

what happens, the maximum value you can lose is the value of your investment in that company. Your personal assets are never under threat should the company go bankrupt.

 Company Funding- Debt vs. Equity.

Companies raise capital by debt financing (loan from the bank or issuing a bond) or equity financing ( selling part by issuing shares.

Issuing stock is advantageous as the company does not have to pay back the money or make interest payments along the way. The first issue of stock by a private company is called the initial public offering (IPO).

When you buy a debt investment such as a bond , you are guaranteed a return of your capital along with interest payments. By buying an equity investment you you assume the risk of the company not being successful. If the company goes bang you only get paid after the banks and the bond holders have been paid. Shareholders earn a lot if the company is successful but stand to lose their entire investment should the company fail.

There are no guarantees when it comes to individual stocks. Some companies pay dividends , but others may not. There is no obligation to pay dividends. You make money by the appreciation of the stock price.

Although risk might sound negative , there is a bright side. Taking on risk demands higher returns. That is why shares outperform bonds or bank savings.

 Types of shares.

There are two types of shares: common stock and preferred stock.

Common stock

When people talk about shares they usually refer to this type. Common shares represent ownership in a company and a claim (dividends) on a portion of the profits. Investors get one vote per share to elect board members who oversee the major decisions made by management. Common shares hold the biggest risk as the holders of this asset class will not

receive money until the creditors, bondholders and preferred shareholders are paid.

Preferred stock

Investors in preferred shares are normally guaranteed a fixed dividend but without the same voting rights of common shares. These shares are also callable and this means the company can buy back these shares at any time and for any

reason (mostly at a premium).

Different classes of stock

Companies can customize different classes of shares in any way they wish so as to give the voting power to a different group. One group may have 10 votes per share while another class will have one vote per share. Normally Class A or Class B stock etc.

How are shares traded?

Shares are traded on exchanges. Some exchanges are physical trading floors where traders seem to be running around

waving and speaking sign language in addition to loud screaming. This looks crazy but is actually quite orderly. The other type of exchange is virtual, composed of a network of computers where trades are executed electronically. This form of

trading is far more transparent than floor trading. The JSE closed it’s open outcry floor in 1997 and everything is now traded through a network of computers linking the exchange to the JSE’s virtual trading pits.

Exchanges facilitate the exchange of securities between buyers and sellers, reducing the risks of investment. There is a

primary market where shares are created (by means of an Initial Public Offering) while in the secondary market , investors trade previously-issued securities without the involvement of the issuing-companies.

The Johannesburg Stock Exchange.

About the Main Board

In 1886, the discovery of gold on the Witwatersrand led to a boom in mining and financial companies and a stock exchange was soon needed. And so began the Johannesburg Stock Exchange’s Main Board.

The JSE holds a treasured position as one of the top 20 exchanges in the world in terms of market capitalisation. The majority of this market capitalisation is based on the companies listed on the Main Board and the JSE’s top 40 stocks are also listed here.

These stocks are highly regarded by both local and international investors.

The Main Board houses the same sectors grouped according to the London Stock Exchanges XXXX. Dual listings are actively encouraged and are possible on all boards of the JSE.

A list of all Main Board companies can be found here.

Listing benefits Access to capital for growth: listing gives you the opportunity to raise capital to fund acquisitions as well as growth.

Boost your profile: listing generally heightens your company’s public profile with customers, suppliers, the media and investors. As a result more business opportunities become available to you.

Create value and liquidity for shareholders: because your company’s value is independently assessed, shareholders can realise their investment, liquidity is stimulated and your shareholder base may be broadened.

A listing allows you to facilitate broad-based black economic empowerment (BEE) deals, a prerequisite to effective corporate citizenship in South Africa.

You may offer share incentives to employees to encourage commitment and improve the quality of recruits.

Why the JSE?

The JSE is well positioned to help you leverage your listing to its maximum. In addition to the benefits above, listing on the JSE allows you to:

Enjoy local analyst coverage as well as high media interest.

Attract international investors who are easily able to trade in JSE-listed shares without any restrictions.

Trade your shares securely and efficiently on JSE TradElect™, the London Stock Exchange’s trading system.

Be eligible for inclusion in the FTSE/JSE Africa Index Series, thus creating additional exposure for your company both locally and internationally.

Marketing your business to investors with the assistance of the JSE Business Development team.

·         Dual listings

·         Dual listings brochure

 company on the JSE gives you the opportunity to:

Tap into local knowledge, skills and interest.

Use your listing as a springboard into the rest of Africa.

Access deep pools of capital relative to other African markets.

Use your shares as local currency for transactions.

Increase and diversify your company’s pool of liquidity

Facilitate compliance with South African government charters on broad-based black economic empowerment.

Is listing for you?

The decision to list your company needs to be made once you have realistically assessed your company, its management, resources, stage of development, long-term strategy, goals and future prospects. You would also need to consider the timing of a listing in terms of market conditions and where your business is at that point in time.

There are many specific requirements that you need to meet which are in the JSE Listing Requirements. These can be accessed on their website. We have three markets on which you could list: the Main Board, the Africa Board and the

Alternative Exchange (AltX). The decision to list on either market depends on factors like the size of your company, your funding requirements and what you would like to achieve with your listing. Listing may be just what you need to take your business to the next level. A typical main board listing requires 300 different shareholders with a spread of at least 20% and a 3 year proven profit before tax of R 8 million Rand.

What makes Share prices change?

Share prices change everyday compliments of market forces of supply and demand. Participants have different perceptions of a company’s potential earnings and are therefor prepared to pay different prices for a share. If more people want to buy a share(demand) than sell it (supply), then the price moves up. Understanding supply and demand is easy. What makes trading stock difficult is understanding what makes people like a certain share and dislike another.

Every investor has his own ideas and strategies. Some are just outright punters.

The price of a share is determined by what investors perceive it to be worth. The value of a company is it’s market capitalization which is simply calculated by share price multiplied by the amount of stock in free float. Matters are complicated by the price of a share which reflects the growth that investors expect in the future.

The most important factor in valuating a company is it’s earnings. Earnings are the profit a company makes. Without profit it can’t survive. Companies are required to report their earnings and the market watches these reports to determine future value. If the earnings surprise share prices jump and conversly when they dissapoint the stock prices fall.

Sentiment is a very important driver of price as was evident in the dotcom bubble. Tech companies saw their valuations shoot through the roof despite them not making a cent yet. These valuations did not hold and their values shrunk to a

fraction of the highest prices they achieved. There are numerous variables that influence price and investors are developing more and more to determine valuations. You might have heard of like price/ earnings ratio, while others have obscure names like Chaikin oscillator or moving average convergence divergence. So why do prices change? Nobody really knows but we know for certain that they are volatile and that creates opportunity. At the most fundamental level , supply and demand in the market determines share price.

- price times numberof shares in free float is the value of the company. Comparing just the price is meaningless.

- earnings affects investor’s valuation but other indicators are also used to predict the price.

- there are many theories that explain share price movement. There is however no one theory that can explain

everything.

Buying Shares

How do you buy and sell shares. You luckily don’t have to go into a trading pit and yell your order. There are two main

ways to purchase shares.

Using a broker

There are two types of brokers : full-service who supposedly offer expert advise and charge higher fees and discount brokers who execute without any add-ons.

With the advent of the internet trading platform most brokerage houses have changed to the latter. Anyone can now afford to invest in the market.

DRIPs

Dividend reinvestment plans allow investors to purchase stock directly from the company by reinvesting their dividends.

How to read a share quote

Any financial newspaper should have the following tables giving you share price info:

This clip was taken from US newspaper so quoted in Dollar but SA shares are quoted in SA cents per share.

Columns 1 & 2: 52-Week High and Low - These are the highest and lowest prices at which a stock has traded over the previous 52 weeks (one year). This typically does not include the previous day's trading.

Column 3: Company Name & Type of Stock - This column lists the name of the company. If there are no special symbols or letters following the name, it is common shares. Different symbols imply different classes of shares. For example, "pf" means the shares are prefs.

Column 4: Ticker Symbol - This is the unique alphabetic name which identifies the stock. If you watch financial TV, you have seen the ticker tape move across the screen at the bottom, quoting the latest prices alongside this symbol. If you are looking for stock quotes online, you always search for a company by the ticker symbol. If you don't know what a particular company's ticker is you can search for it at http://www.jse.co.za/How-To-List-A-Company/Main-Board/Main-Board-Listed-companies.aspx

Column 5: Dividend Per Share - This indicates the annual dividend payment per share. If this space is blank, the company does not currently pay out dividends.

Column 6: Dividend Yield - The percentage return on the dividend. Calculated as annual dividends per share divided by price per share.

Column 7: Price/Earnings Ratio - This is calculated by dividing the current stock price by earnings per share from the last four quarters. For more detail on how to interpret this, see the P/E Ratio explanation in later chapters.

Column 8: Trading Volume - This figure shows the total number of shares traded for the day, listed in thousands. To get the actual number traded, add "000" to the end of the number listed.

Column 9 & 10: Day High and Low - This indicates the price range at which the stock has traded at throughout the day.

In other words, these are the maximum and the minimum prices that people have paid for the stock.

Column 11: Close - The close is the last trading price recorded when the market closed on the day. If the closing price is up or down more than 5% than the previous day's close, the entire listing for that stock is bold-faced. Keep in mind, you are not guaranteed to get this price if you buy the stock the next day because the price is constantly changing (even after

the exchange is closed for the day). The close is merely an indicator of past performance and except in extreme circumstances serves as a ballpark of what you should expect to pay.

Column 12: Net Change - This is the cents value change in the stock price from the previous day's closing price. When you hear about a stock being "up for the day," it means the net change was positive.

You can also get stock quotes (delayed) from websites like www.jse.co.za or www.moneyweb.co.za

A bid is the price someone is prepared to pay and the offer(ask) price the price at which someone is prepared to sell.

When these two meet they transact and a deal is created.

Bulls and bears.

A bull market is when everything in the economy is great, people are finding jobs, gross domestic product (GDP) is growing and share prices are in a rising trend. Picking shares to buy in a bull trend is relatively easy as most go higher.

These strong bulls mostly lead to overvalued stocks which is dangerous to the investor. Greed invariably feeds the bulls to just keep on paying any price. If a person is always optimistic about share prices risign they are called bullish or a bull.

A bear market is the opposite of a bull market. Times when the economy is bad and recession looming are refered to as bear markets. A person with a pessimistic point of view or belief that stock prices will come down rapidly is refered to as bearish or a bear.

Chickens are what the name implies: a person who is so risk averse that they don’t commit any money to the market and rather invest in money-market instruments.

Pigs are highrisk takers and by on hot tips etc. fueled by their greed. Proffesional traders love pigs as it is often from their losses that bulls and bears reap their rewards (profits).

There are numerous styles of trading or personalities affording everyone opportunity to make money. Bulls and bears are in constant battle with pigs adding to volatility. The trick is NOT to invest in any instrument you do not fully understand.

If you don’t do your homework you will get hurt and lose money!!

Summary

- Having shares in a company give you claim on the assets and earnings as well as voting rights.

- Share are equity , bonds are debt. Bondholders are guarenteed a return whereas shareholders take on risk of the company not being succesful therefor requiring a higher return on their capital.

- You can lose all your money in shares. You can also make lots if you pick the right share.

- There are two types : common and preference shares and companies may create different share classes.

- stock markets are the places where buyers and sellers meet to exchange shares.

- The JSE is the major stock exchange in Africa

- Share price fluctuate due to the forces of supply and demand. Most important factor influencing price is earnings

- There is no hard and fast way to determine or explain price movement

- To buy shares use a broker or DRIPs

- Stock quotes and tables are easy to read - don’t be afraid of all the detail

- Bulls make money, bears make money but greedy pigs get slaughtered.

[jerrymononela]

Jerry Mononela : Top 5 Angel Investors In South Africa

In our previous posts, we have talked about who is an Angel investor and where to find an Angel investor for your startup company. There we talked about the various platforms where you could meet such investors both online and offline. But in all fairness, being a person who is well versed in the South African financial and entrepreneurial sector, I have to list out Angel Investors that in South Africa that have propelled many, many small businesses to stardom. So in today’s Jerry Mononela’s financial blog, we will be covering the top Angel investors in my native country: South Africa Where To Start? First things first, I can’t be perfectly objective about the Angel investors I am going to list out as startup founders always see investors in a subjective light. My opinion will hold almost little to no ground in this decision so I have decided to provide a trusted portal to check out South African Angel investors and their portfolio.

Angel.co is a wonderful website that I use to update myself on the latest ventures of the top Angel investors in South Africa; just for my knowledge. They have the most information about the businesses they have either invested in or started themselves and it is enough to paint a satisfactory picture in a founder’s mind that is looking for an investment.

But for this blog, I will be stating my opinion on how I perceive the Angel investors I am going to list down below. So I highly recommend checking out their complete portfolio on other sites to get a clearer, but more specifically a more objective picture so that you can try out for an investor that suits your business’s needs. Ernst Hertzog If your business has the potential to be extremely scalable and reach a nationwide audience, then Ernst Hertzog is the guy for you. He mostly invests in small businesses that can expand enormously but don’t have the capital to do so. He is the founder of Action Hero Ventures which has many formidable companies under its belt. I believe if you require immediate cash to scale your business, then Ernst Hertzog can definitely take you to your desired heights and then some. Brett Dawson Brett Dawson is the tech guy who has made quite a name for himself through his angel investments. His Angel investment group has invested in one of the best wedding registries in South Africa called Wrapistry. He was the head of Dimension Data and when he left, he had quadrupled their net revenue from 2 billion USD to 8 billion USD and has now launched a company called Campan, an Angel investment company that will manage all of his previous angel investments. Given his background, Brett Dawson can help out startups involved in the tech business to a huge degree. His portfolio is impressive and his new Angel investment company Campan is speculated to be a wonderful platform for new businesses to turn into giants of the South African market. Avi Eyal Avi Eyal is a combination of a financial and technical entrepreneur. He specializes in mobile payments, financial services, and E-commerce in mobile. With over 15 years of experience in the market and 7 businesses that he has invested in Avi Eyal is a perfect match for your financial startup. As quoted by Avi himself, he is a ‘seasoned, self-made entrepreneur and an active shareholder.’ So if you want to have a hands on approach for your business from someone who has developed a lot of muscle during the game, Avi Eyal is the Angel investor for you. Mohamed Nanabhay A perfect Angel investor for a digital media company. Mohamed Nanabhay has invested and founded multitudes of companies, forget that, successful multitudes of companies in the digital and social media field. He is the deputy CEO of the Media Development Investment Fund and has founded the largest consumer internet site in Qatar. Mohamed Nanabhey is insightful, experienced, and has enormous knowledge about the media consumption market. Not only does he have such wonderful expertise, but he also knows how to use it its fullest potential for media companies in their early stages. If your startup deals with media of any kind, Mohamed Nanabhay can get you the reach you desire. Alvin Singh Alvin Singh works mainly in the mobile software market and consumerism on the internet. He has extensive knowledge of how to lead a company from the ground up to make them extremely successful. Alvin Singh has shown that his strategic decisions during the early stages of a startup and when it is launched into the market are capable of exploding the company to a national level. He invests in 1 to 2 businesses every year and provides them with a marketing platform to help them maximize their potential. With a varied and solid portfolio of companies behind him, Alvin Singh is surely a digital marketing genius that can get you and your companies foot out the door. About Jerry Mononela Jerry Mononela is a freelancer and a passionate financial blogger, I offer advice to complete beginners in the sector I love the most: Finance. Check out more of me at my site Jerry Mononela and socials: Reddit and YouTube for more content!

[jerrymononela]

How The South African Stock Market Crash Can Affect You

 The South African stock market was already in shambles before the spread of the Coronavirus, but due to the president declaring a nationwide lockdown to curb COVID-19 cases in the country, the stock market in our country suffered an expected but still terrible blow. 

The South African All-Share index JSE/FTSE was having difficulty rising in the market since 1997 and slowed down tremendously in 2008 because of the global financial crisis, but it fell a whopping 11% in Johannesburg, the steepest fall recorded in the last decade.

Naspers, South Africa’s largest stock also fell 11% and had the most impact on our market. Richemont also fell 12%, confirming everyone’s fear about the country’s struggling economy going into an ultimate meltdown. 

It is interesting however to note that the South African stock market is not the only one that’s struggling in the pandemic. The United States Of America (USA) has officially gone into recession and experts suggest that top economies in the world including China, India, UK, and Germany are likely to follow. 

How Was The Global Market Affected When The Outbreak Started?

From March 16 the global stock market suffered an acute crash as panic ensued amongst investors and minor stockholders due to WHO (World Health Organisation) declaring a pandemic of Coronavirus on March 11. The S&P500 reported the biggest fall since 1987 as many businesses were forced to either be shut down or operate on a limit due to travel restrictions and social distancing rules. The panic however reduced in the following 2 months and stocks restored their value after the 60 day period in June.

How Has the Coronavirus Crisis Affected South African Stocks?

On 2020’ infamous Black Monday i.e 9th March 2020 that was instigated by mass panic among the world’s entire population, Oil shares around the globe fell by 30% as Saudi Arabia undercut its competitors (Russia and USA) to provide cheaper oil, and the South African JSE’s All-Share index fell by more than 6%. This was registered under the top 14 biggest falls of stock all around the world and by 12th March, the JSE was down by 9.7%. Such a fall is enough to cripple our economy for a substantial amount of time.

Sasol suffered the steepest fall of 15% in March and was termed as the worst performer across all emerging markets. These two crashes all came within a week and were termed as the biggest crashes the JSE has suffered due to the Coronavirus crisis.

Was Any Other Country Also Affected As Severely As South Africa?

As mentioned before, the global stock market suffered a huge amount during the initial stages of the pandemic, but it is gradually trying to catch up to its earlier pace. Although due to some major changes that have been made around the world, some sectors of the market suffered more than others and are still diving deeper into the negative category. 

Due to restrictions on travels and that almost all automobiles essentially coming to a stop, US Oil shares lost value for the first time in April 2020, causing the country to go into a recession. The Brent Crude crashed by 24% to 33.36$ and US Oil was dropped by 34%, being reduced to $27.34.

This was caused by a bidding war between Russia, the US, and Saudi Arabia for Oil supply with Saudi Arabia undercutting its competitors and causing a massive fall in US Oil’s share prices. This downfall in the US economy will have effects on the global market as well, including the South African market.

Did Some Stocks Benefit Due To The Lockdown?

Although the stock market crashed due to the Coronavirus panic, many businesses have boomed. The IT industry is now flusher than ever as most of the workforce is indulging in work from home. 

Since people don’t want to step out, after the little bubble crash of the market delivery businesses are also booming. 

Not to mention the entertainment industry. People are worried sick and feel bloated sitting at home so they are looking for entertainment. Film producers that were crying for theatres to not be closed down are now counting their millions of views on an online platform.

The spread of Coronavirus and the subsequent lockdown has not completely destroyed every stock in existence. It has affected each business individually. So if you are also worried sick of the market crashing, invest in those parts of the market that are flourishing and will continue to flourish. Vaccine companies are trading stocks at a rising value by the minute while giant automobile industries are dying. It all comes up to you in the way you let the Coronavirus crisis affect you.

The 11-year-old bull market has finally been converted to a bear one, and it is a great opportunity for you to invest in stocks by taking advantage of mass panic selling across the globe.

Which Stocks Should You Invest In?

As crazy as it sounds, investing in a falling stock would be a very wise decision. Panic selling has caused stocks such as those of Ocean cruisers and restaurant cafes to go down severely, but as we move astonishingly closer to a vaccine, these giant corporations will be back on their feet in no time. Investing in a heavyweight stock that has lost its value due to restrictions posed by the Coronavirus is a risk worth taking. A drop in the US Oil shares has caused its entire country to go into recession, but when travel restrictions are lifted the stock would skyrocket due to a sudden increase in demand.

A wise, painful decision taken in the present is a happy, fruitful memory in the future.

 Who Is Jerry Mononela?

Jerry Mononela is a private accountant who offers accounting services as well as financial advice in the city of Tshwane, Johannesburg. I have accounting experience of 9 years and counting and I love to write about finance.

If you liked this blog check out more of me at my website and my Reddit profile!

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Written By Jerry Mononela