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Copycat Investing

Piggy recalls that 2020 was a roller-coaster year, particularly for stock market participants. It was marked by changes in policies, Covid-19, suspension of trading activity and the introduction of new financial products and to crown it all, a USD stock exchange. However, it would be unfair if Piggy did not take credit for the money-making calls that he made during the year. Those who take Piggy’s tips seriously are now smiling all the way to the bank. Here are titles of some of our articles that if acted upon, would have earned you more than your annual bonus;

  • 4 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
  • 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 advice. 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 CBZH, ZBFH, BNC, Masimba and RioZim. While there is also M&A activity underlying big value trades, there is scope for huge share price up-liftments that investors and traders can also take advantage of.

Overall, the difficulty in implementing the copycat investing strategy lies in time lags. It could take weeks between the time a money manager acquires or disposes of a stock and when that information is made public for the copycat investor. One would probably need a twitter account and access to some reliable news-wire service to be able to accurately detect the moves of the “big and smart”.

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What is Piggy Saying? – An insights and analysis show that covers Economics and the Stock Market in Zimbabwe.