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Satrix Question
- Thread starter lilggg
- Start date
You can do so via the Satrix website I think but you would get it at less cost directly on the JSE.
I use a broker company Imara SP Reid and do the buying myself from their website. You can deposit money into your cash account with Imara and earn 5.75% interest pa if you do not buy into STX immediately.
You can monitor the price and buy at the lows yourself or phone/email your broker to buy for you "at best" if you are not familiar with the price movements.
The "stop order" via STX will trigger buys monthly at prices that might be too high and this is detrimental over a long term and will throttle your gains.
I use a broker company Imara SP Reid and do the buying myself from their website. You can deposit money into your cash account with Imara and earn 5.75% interest pa if you do not buy into STX immediately.
You can monitor the price and buy at the lows yourself or phone/email your broker to buy for you "at best" if you are not familiar with the price movements.
The "stop order" via STX will trigger buys monthly at prices that might be too high and this is detrimental over a long term and will throttle your gains.
VG008
Senior Member
Yes you can. I did it when I opened my account.
supersunbird
Honorary Master
Well, I don't know what gave you the idea that that seems to be the case, but it isn't.
VG008
Senior Member
It is usually more expensive to invest directly on the JSE especially if it is small amounts monthly. I'm not sure what your broker fees are, but there is usually a fixed monthly costs for the trading platform.
Timing the market, never a good thing.
@VG008. I pay a mere R200 pa for Admin fees only. No platform fees as I am not trading. This has been discussed extensively on investment forums.
Timing the market, never a good thing is correct but it is not applicable on the daily time frame. Buying after a one day huge leap is never a good move. A huge leap will attract selling on the next day. This, over a long term will affect your growth.
Timing the market, never a good thing is correct but it is not applicable on the daily time frame. Buying after a one day huge leap is never a good move. A huge leap will attract selling on the next day. This, over a long term will affect your growth.
So i finally got my lump sum satrix 40 investment sorted. If i create a new debit order for Satrix 40, will the funds be added to the same lump sum investment that was setup or a completely seperate one? Obviously if it was added to the lump sum every month this would be better.
SauRoNZA
Honorary Master
Yes, you can.
But I advise you stop doing the paperwork right now and never ever deal with AOS.
Rather buy the exact same Satrix ETF's through Easy Equities and save yourself the pain and trauma...while also paying less.
****
Too late, missed your post above.
But I advise you stop doing the paperwork right now and never ever deal with AOS.
Rather buy the exact same Satrix ETF's through Easy Equities and save yourself the pain and trauma...while also paying less.
****
Too late, missed your post above.
SauRoNZA
Honorary Master
It should give you an option to select which one you are setting up the debit order for.
If it's for the same Satrix 40 ETF then it will add to that regardless. There's absolutely no point in having multiple "portfolios" of the same thing so SATRIX would probably not even do it like that if you asked them to.
supersunbird
Honorary Master
Added to lumpsum.
supersunbird
Honorary Master
Glad I'm not the only one that dislikes AOS...
SauRoNZA
Honorary Master
If only I had known how terrible they were 5 years ago. I would rather pay someone else more money to get better service.
Thankfully now there is EE.
supersunbird
Honorary Master
Slowness overall. Not implementing my instructions to start an new investment in a Satrix fund.
bchip
Expert Member
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If you think the only fees you pay are R200 per annum then you seriously missed something.
The costs through brokers are higher as they take (minimum) 0.5% of any transaction
on equities. CFDs are a smaller charge, but they then charge interest as well.
Satrix website is just another broker that allows for smaller payments and debit orders....that broker is ABSA
bchip
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Definitely want to hear more about this, what you basing that research and how exactly you wouldve played on this index as most up days were followed by more up days.
This is just one example.
You ask a question about daily trading based on a monthly graph?
That said, in any market that consistently increases (which most markets are in the long term), buy and hold is the best strategy. Sure it is theoretically possible to beat long term market returns with active "high frequency" trading but practically, once trading costs are taken into account, it is very hard.
That said, in any market that consistently increases (which most markets are in the long term), buy and hold is the best strategy. Sure it is theoretically possible to beat long term market returns with active "high frequency" trading but practically, once trading costs are taken into account, it is very hard.
bchip
Expert Member
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You are correct in pointing out its a monthly chart, not a daily so I'll add 2 charts for you...
Daily pullbacks
Waited 2 months for a pullback and by the time you got it the price had risen 10% already.
And 1 for the buy and hold strategy (the rest of that chart):
Man that buy and hold strategy really panned out...26 years later and still waiting
(Nevermind all the other examples I can show)
Is this a sure way to make that 1-2% extra? Nope as you mentioned there is always the risk the price rises above what it currently is and you then pay more to buy it later and with a general upwards trend of most shares that risk will most likely be >50%.
Does that mean there is no benefit to considering this method? Definitely not.
Looking at any stock market chart you will rarely see any share just going up without going down at all, for most it is a up/down for a upward trend in most cases which then creates the possibility of the price being lower than what it currently is in the near future.
Like all investments you need to understand the risk and rewards that relate to this method and evaluate whether you want to take the risk for the additional return or just buy now and avoid any gains to be obtained by waiting.
As while the Efficient Market Hypothesis may seem great reality is that investors are people who tend to react emotionally so there may be instances where some event was over hyped resulting in stock price increases which could decrease as reality sets in.
I'm not saying that there is never any value in active trading nor am I saying that buy and hold is always the best option. My point was more that for most people, active trading will not be worth the amount of time that has to be put in to do it properly. And if you don't do it properly, you will almost always be worse off than if you had adopted a buy and hold approach.