BY BATANAI MATSIKA
AS we move into the second half of the year 2021, Piggy would like to take a moment to thank all users for all the continued support on our platform. It is a great honour to be part of this remarkable community that continues to empower individuals, households and businesses around the world.
We have, indeed, evolved into one of the fastest growing online communities of trading and investing enthusiasts. Our WhatsApp groups have grown exponentially, while we continue to see an increase in page visits on our blog. We take pride in the fact that we have helped thousands onboard trading platforms such as C-Trade, ZSE-direct, IronFX and IQ Option.
Further, it is also encouraging that we have achieved some milestones during a time when we are witnessing a global revolution and democratisation of investing and trading.
For us, an inspiring story when it comes to investing as a retail player on the Zimbabwe Stock Exchange (ZSE) relates to the case-study of Roy Turner. He passed away at the age 86 and was an astute investor on the local market who held a significant portfolio on the ZSE as he appeared on many top 20 shareholder lists for ZSE companies.
Some of his holdings were in Masholdings, Masimba Holdings, Proplastics, Falgold and Afsun. We note that in September 2005, Scaiflow Investments (Turner’s company) became one of the leading investment vehicles on the ZSE, spreading its interests across 24 listed companies out of the 80 counters.
While Turner was very conservative, never married and used a bicycle as his mode of transport, a lot of ideas can be learnt from him regarding investing on the stock market.
That said, it would be unfair if Piggy did not take credit for money-making calls that he has made in the past. Those who take Piggy’s tips seriously should be smiling all the way to the bank. Here are some of the articles that if acted upon, would have made you money;
- Four Reasons to buy ZB Financial Holdings;
- Why Padenga remains a top pick on the ZSE;
- Will BNC benefit from the EVs Story?
- Beer — The “permanent” solution to our problems; and
- Catch OK Zim if you can.
Clearly, it requires a bit of effort to make money on the markets. The bare minimum is reading Piggy’s articles and calling him for some tips.
Piggy has also written about The Amazing Turtle Trading Story and explained how it is important to develop a strategy in the trading and investing arena.
One interesting strategy that readers may want to test in 2021 would be copycat investing. It is also sometimes referred to as mirror trading and attempts to duplicate the investing ideas of reputed investment managers, without the actual physical link between accounts.
The concept is widely used in the world of forex trading whereby mirror trading platforms allow retail clients to co-invest with a portfolio manager.
Traders can also select strategies that match their personal trading preferences, such as risk tolerance and past profits. Once a strategy has been selected, all the signals sent by the strategy will be automatically applied to the client’s brokerage account.
No intervention is required by the trader as all the account activity is controlled by the platform. Beginners can profit from a copy trading platform without the need to study the market. Since this strategy is automated, it also cuts out the emotions related to trading.
This method can be applied on the local stock market by simply following the moves of the “big and smart” money. For example, Piggy has witnessed some big trades in counters such as CBZ Holdings, First Mutual Holdings Limited, ZB Financial Holdings, Bindura Nickel Corporation, Masimba Holdings and RioZim Limited.
While there is also M&A activity underlying big value trades, there is scope for huge share price upliftment that investors and traders can also take advantage of.
All in all, social media and online trading platforms are shifting the power away from the traditional players to retail investors. The financial markets landscape has completely changed as it has merged with the world of social media and a generation of investors and traders who have been empowered by online platforms. This has also made some in this new generation wildly wealthy.
Overall, it is against this background that we believe we should take advantage of the “power of online crowds”.
While we will continue using WhatsApp for education and engagement, we would like to announce that we have set up a Telegram group for active traders and investors on Zimbabwean capital markets. A Telegram group can have up to 200,000 members. Contact Piggy for the Telegram group link and be part of a dynamic social trading and investing community!
Matsika is the head of research at Morgan & Co, and Founder of piggybankadvisor.com. He can be reached on +263 78 358 4745 or email@example.comfirstname.lastname@example.org