How To Invest

Being able to independently control every aspect of your investment-making is important to its success. Your investment portfolio must be responsive to your needs and preferences to achieve the best result for you. But is it better to build this independently or through an investment fund?

How To Invest – Self-Directed vs. Managed?

Building a stand-alone investment portfolio and the selection of instruments are the most obvious challenges in self-directed investing. This is why we offer you guidance through each of these challenges. But if an investment fund would make these choices for you, what advantages does self-directed trading offer you?

Why Become A Self-Directed Trader?

1. An investment fund's primary objective is to make the biggest profit for its organisation – this does not necessarily translate to the biggest gain for you as a unitholder. Funds also generate income through management fees and these are levied regardless of the results. This makes collecting, rather than multiplying, assets their priority – a motivation that is not necessarily in the best interests of your investment. We're here to ensure your choices are motivated in your own best interests.

2. Funds draw attention when they post good profits. Suggesting that fund managers know where and how to invest best seems to be the strongest argument against self-directed investing. However, joining a fund on the basis of historical performance offers no guarantees – sometimes it will continue to increase, but if the market has no potential for further growth you could also experience painful losses. Follow your own investment strategy from beginning to end prevents you from blindly following the crowd into poor investments.

3. Restrictions on withdrawal of funds, and potential additional fees, apply with investment funds. With a self-directed account, you have total control over your funds. Money from our investment account can be withdrawn at any time.

4. In an investment fund you are at the mercy of other investors / unitholders. When a fund starts to lose money, investors leave its ranks en masse. The closing of the investment by the management can follow, meaning further losses passed on to you. When you trade in you, how you run it, change it or close it is entirely up to you.

Investment funds are not inherently bad. Yet the knowledge required to invest in them effectively is comparable to the knowledge you receive from us through a brokerage account. So what advantages does an investment fund have? Given all the advantages of self-directed trading, we believe investing independently is simply a better option than a fund.

Follow the markets online

We provide four extended sections with professional analyses and investment tools, which together form a source of complete knowledge about the market. The access level depends on the account type; however, even the registration itself provides a large portion of the information passed to NonStop.

Read more about TMS NonStop
How To Trade On The Stock Market
  • Choose markets you already know and understand, or the ones you want to get to know.
  • Select the appropriate moment to enter into a transaction. Those who buy cheaply and early, gain the most. But do not follow other investors blindly – stick to your own strategy.
  • Minimise risk on your whole investment. Never risk the whole capital, or its greater part, on individual transactions.
  • Do not choose investments that, by definition, provide a small annual profit, e.g. less than 5 percent. Amounts of this value can be earned in a deposit account without the risk of losing your financial contribution.
  • When you invest, use a thoroughly researched and developed investment strategy – and stick to it.
  • Emotions are a primary cause for losses. Only invest savings that are not designated for another specific purpose.
  • Do not let your profits run away – let them grow. Do not close positions too early or too late. Again trust your strategy.
  • Be responsive and adjust your investment method to yourself and your needs when necessary.