Trade of the Month: Transaction Capital
In some investments pairing two shares helps reduce the risk
Shorter-term trading is mostly a lot more risky than longer-term investing. One way to mitigate the short-term risk is to "pair trade". This entails equal nominal exposure to two stocks that are trending in opposite directions.
Given the uncertain nature of things at the moment, and the potential for the rand to keep weakening, IM has looked into the JSE’s financial sector for potential short setups.