Friday, August 29, 2008

About the STX40 Share

Our previous post explained how ETF's were the best way for private investors to get into the stock market. The returns are good, the costs are low and so are the risks.

The STX40 is the most successful ETF in SA, and if you buy your shares through http://www.satrix.co.za/ you only pay 0.1% brokerage (versus 0.6-0.8% for standard brokers or online share trading portals) and the annual administration costs are 0.8% (a fraction of what fund administrators charge you). This blog is about how to make relatively risk-free money from the STX40 using a system we have devised together with very expensive technical analysis software to trigger BUY and SELL signals. As such we are not here to provide details on the STX40 share and for more information on SATRIX40 go to their website.

Note that neither this blog nor anyone working on Satrix40 Trader is in any way associated with the STX40 fund administrators.

How has the STX40 fared since its inception 6 years ago? Have a look at the chart below:


You can see that the STX40 is a pretty safe investment. If you bought 6 years ago you would have more than tripled your money. Not earth shattering like some JSE urban legends you hear of but given how safe this investment is and how low the costs of administration are, you would have done pretty well. The green and red arrows show where our system triggered BUY and SELL (Entry and Exit) signals that allowed you to enjoy the growth phases and have your cash sitting earning interest during the bearish periods. Using our system you would have averaged 50% growth of your original investment per annum!

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