Online trading is not an option for low earners
Online trading is not an option for low earners.
Online trading deals with indicators and players must know when to enter or exit the game. Accuracy is the name of the game.
This is the stock market. Online traders must know when to hold on to shares and when to sell them. That makes the difference between making profit and having a loss. More South Africans are becoming market stock traders thanks to globalization and technology. Most of them want to supplement their salaries through this business. But how viable is online trading?
Statistics show that about 10% out of a population of 47million people in South Africa engage in online trading. This excludes businesses. This is a new business in the country that has been a monopoly of big businesses and wealthy individuals. Most new traders is the Black Middle Class whose earnings range between R8000-R20 000 per month. Those who fall below this range do not have enough to pay for training and have a starting capital. Those who earn above this range prefer businesses that deal with tangible products.
Training companies are emerging. Their role is to train traders on online trading and provide them with trading platforms. The companies charge a fee ranging between R8000 to R15000 for training. This does not include capital that an individual will need to start trading. For a company to be legitimate, it has to register with the Financial Services Board. There are no registration requirements for individuals. The companies are not allowed to trade for individuals. Traders have to deal directly with the stock market they are trading with.
Earnings The profit on the stock market depends on the amount used to buy shares; the more money one puts in the higher the profit. There is a 50/50 chance of losing or making profit. For an average trader in South Africa, one can make a profit of about R10 000- R15 000 in a space of two months. Outside forces determine the markets. The more people buy the shares, the bullish the market becomes. When traders pull out of the market, it becomes bearish. Market indicators like candle sticks, Heikin-Ashi and Statoil warn the traders about market directions. Like gambling, stock market is a game of chances. There are no boundaries of where to trade locally or internationally.
Training institutions like Cash Flow pro have given birth to young millionaires like Jabulani Ngcobo. When asked about the success stories of individuals they are training, one of Cash Flow directors (who asked to remain anonymous) said that individuals do private trading, therefore do not declare their profits to Cash Flow pro. What is apparent though is the use of television and radio personalities by some training institutions as draw cards for people to join online trading. While online training companies are thriving on profits made through training, the same cannot be said about those whom they train. It has emerged that some people take loans to start online trading an act that ends them in huge debts without any rebates.
Online trading has become an option to supplement a salary but it remains a risky business. There are no available statistics in South Africa of individuals doing online trading as the government does not regulate private online traders. It is impossible to estimate the success or failures of the business. People have to be cautious of what they venture to on undertaking this business.
Tags: Online traders; Financial Services Board; stock market; Heikin-Ashi; Jabulani Ngcobo
www.psgonline.co.za › Online Trading
Money is the world of promise by online training institutions. They guarantee financial freedom where you are your own boss and work flexible and short hours.
Jabulani Ngcobo; Durban’s young millionaire and owner of Cash flow pro, a company that trains people on online trading.
Dollars in the near future. Hundreds of people in Cape Town, Durban and all around the major cities of South Africa attend online presentations hoping their dreams would come true.