The trade goes on: Last week’s ca$h profits, this week’s share purchases, Naspers, China and Lady Gaga

08 Nov 2010, Posted by Cape Town Girl in CTG recommends, advertising, blogs, cape town, lifestyle, money money money, south africa, 11 Comments

So our trade from last week is still in play – we were up to R600 profit this am, but it’s dropped and have now made a R250-odd profit thus far and Ollie tells me he is happy with the way things are going so we’re letting it continue (even though things were looking quite bad at 2am this morning, when we were just breaking even, somehow the numbers did their thing and balanced out by the time I got the call from Globaltrader at 10am this morning). Good news! Feeling encouraged. Feeling like not a total numbers dufus.

Anyway I have been doing some of my own ‘fundamental research’ (where you look at the business as a whole, it’s past, present and future, it’s ethics, what its staff say about working there, etc) and I asked Ollie about buying some Naspers shares (will tell you why later), and I sent him to this link and asked if he thought it was a good idea. He then drew me this graph, and used it to help explain why he thought it was a good  idea:

How funky is this graph? Wish we coulda done this in school. Would have made ‘how to be a mogul’ classes so much more fun. Anyway here’s what Ollie explained: you see that grey block? It shows that Naspers stock has been trending upwards. Which is a good thing. He was slightly worried however, because the graph has ‘broken through’ at the bottom there (where the little white line falls out of that uptrend grey block). So what he recommended is, instead of just buying it right out, to put an order in (which you can do from the Global Trader desktop app) to purchase shares when they hit a certain price. In this instance, a good price to buy at would be R359,05. So that’s what we’re doing.

That Stop-Loss of R350.89 in red letters - that is like a trading ‘trip switch’. You put a stop-loss in to make sure you don’t lose too much money. So when the share price falls below R350.89, the trade will automatically be closed, preventing a future where I ‘eat catfood from tins’ and ‘live in the alley behind the Louis Vuitton store at the Waterfront’.

Ollie will let me know as soon as the order goes through so we can start watching the Naspers shares.

PS. Why Naspers?

Well, they are an SA company whom I find interesting. They own like, over half of China’s internet. Their CEO fires people who can’t move with the digital times with rampant abandon (I respect that, I would do the same in my own company) and they’re pioneers in the publishing industry, which I respect, too.

If you look at publishing in this country without any sentimentality, you really have to wonder how any of the magazines still make money, since most of them are failing to even acknowledge the fact that the internet now delivers new trends in fashion and popculture daily, making the traditional magazine contents page largely redundant by the time it lands in your postbox. And the rest? Another article about how to deal with the office bitch? Really? Um, scuse me while I go read a 10-page investigative journalism piece on How Lady Gaga Rose To Fame on NYmag.com – nothing personal, it’s just more interesting. SA media houses largely don’t seem to accept that they need to change what they do in order to make themselves relevant again. Naspers, however, is all over that. So they get my money.

PPS. Just got a text telling me my order went through. I’m now a proud Naspers shareholder. 100 shares. Mine. God it feels good!

PPPS. Click here to sign up with a Global Trader Simulated Account and practise trading until you feel confident to use real money. It’s really not as hard or complicated as you think it is! Plus you could win R10 000 to trade with. Win-win, as they say.