Justine Pollard. December 2009

Transcription

1 Justine Pollard December 2009 Smart Trading Pty Ltd is a Corporate Authorised Representative of CDM Pacific Pty Ltd AFSL

2 Disclaimer This presentation and the training services provided by Justine Pollard and Smart Trading Pty Ltd (ABN: ) involve the supply of factual information about securities and securities markets only. Smart Trading Pty Ltd is a Corporate Authorised Representative, AR No of CDM Pacific Pty Ltd AFSL and as such any information is provided as general advice only. The information provided may not be suitable to your individual circumstances or needs. You should always obtain independent investment advice from a licensed investment professional prior to making any investment decisions. Smart Trading Pty Ltd and any agent appointed by Smart Trading Pty Ltd will not accept liability for any loss, damage or expense incurred or suffered by you if you rely on any information provided in making investment decisions. By listening to this presentation you are agreeing to these conditions set out above. Any returns reported are provided for information purposes only. Results of past performance are no guarantee of future returns. No assurance is given that you will incur any profits or losses in your own trading and it should not be assumed that you will experience results comparable to those as reported. Any trade examples or reference to a particular security within this presentation are either fictitious or historical and in no way should be interpreted as a recommendation to invest in any particular stock, CFD or investment. Smart Trading Pty Ltd assumes no responsibility for your trading and investment decisions or subsequent results. There is a high degree of risk involved in trading and as such we always recommend that you seek independent financial advice by a licensed professional prior to making any investment decision.

3 Who is Justine Pollard? Mum of two young children Private trader Trading mentor Author of Smart Trading Plans released 2008 Included in 20 Most Common Trading Mistakes by Kel Butcher with 17 other top traders just released Included in Real Traders, Real Lives, Real Money by Eva Diaz released 2006 Today you will get to know me and how I trade

4 What I will be covering CFDs and what they are Overview of my trading approach Showcase of some of my recent trades Importance of a Trading Plan Showcase of running an actual scan and what I do each day as a trader

5 CFDs CFDs are becoming increasingly popular because they offer many benefits that the stock market does not

6 What are CFDs? A CFD is a contract between you and the company that you are using to make the purchase You trade the same shares as with the ASX, but in a simulated market environment If you were to buy 1000 National Australia Bank CFDs, you would have a contract with the CFD provider for that trade

7 What are CFDs? A shareholder, on the other hand, actually owns a stake in the company In short, a CFD offers the benefits of trading shares by mirroring the performance of the share or index, without the need to actually own them

8 Advantages of CFDs With the power of leverage you can trade CFDs with margins from as low as 1% Access a wide range of global markets and trade long & short You earn interest when you trade short Trade a range of instruments - share CFDs, forex, indices & commodities Trade instruments that would not otherwise have been tradeable eg. XJO, Sectors, etc.

9 Advantages of CFDs Ability to set guaranteed stop loss orders (GSLOs) with select providers Trading CFDs is similar to trading shares because they have no time component and are not as complicated as trading options Dividends are paid on share CFDs (although no franking credits are included) Like shares, CFDs are easy to buy and sell if you are dealing with liquid CFDs

10 Disadvantage of CFDs Traders are required to pay interest on a daily basis for all CFD long positions held overnight CFDs have no voting rights or entitlements to shareholder discounts or incentive benefits CFDs carry no franking credits on dividends There are only a small range of share CFDs available. Depending on the provider, you may have access to anything from 50 to 500 share CFDs

11 Risk of Trading CFDs CFDs are highly leveraged instruments and carry a high degree of risk to your capital It is possible to lose more than your initial investment You should only speculate with money you can afford to lose These instruments may not be suitable for all investors, therefore ensure you fully understand the risks involved, and seek independent advice if necessary

12 Selecting a CFD Provider There are many CFD providers available from brokers to CFD specialists They all vary in their offerings and the way CFDs can be traded, either through a market maker platform or direct market access You need to select a company that suits your style and method of trading

13 Selecting a CFD Provider For example, if you like the idea of guaranteed stop loss orders, then you need to seek a CFD provider that offers this - as not all do If you want to also trade shares/options you might want a provider that offers both these instruments

14 CMC Markets The provider I use for CFD trading is: CMC Markets CMC is Australia's largest CFD provider You can trade shares on the ASX or access global markets with over 3,000 share, index, sector, foreign exchange, commodity, treasury and bullion CFDs through their award winning Market Maker platform

15 Exclusive Smart Trading Offer (on ASX share CFDs) A reduction in the commission charged to 0.08% (0.02% discount) A discount of 0.25% in the overnight financing rate Ability to set market triggers orders (also known as stop entry orders) to open a position at an inferior price to the current market price Free movement of GSLOs Must mention Smart Trading to get this offer

16 Plus you can trade Shares Link both your share and CFD accounts and trade all from the one web based platform Share brokerage available from $19.95 You can set conditional stop orders free of charge other brokers charge $ for this service Even if you have no plans to trade CFDs at this stage you can still set-up a stock broking account and receive the above offer

17 CMC Markets To access these features you need to set-up a new account with CMC and mention Smart Trading Canice Kinnane CFD Sales Executive CMC Markets Asia Pacific Direct Number: Toll Free Number: c.kinnane@cmcmarkets.com

18 My Trading Approach

19 My Approach I m a mechanical trader that aims to exploit trends Using strict money management rules that follow the golden rule of trading: Let your profits run and cut your losses short

20 It s all About Money Management I incorporate a range of money management techniques to: size my trades manage my maximum open-market risk and boost my winning positions through pyramiding I trade both shares (long only) and CFDs (long & short)

21 My Trading Systems I have MetaStock set-up with a mechanical filter that scans for entries & a trailing stop indicator for exits I use the Smart Trader Spreadsheet to track and manage all my trades I trade the markets predominantly with two systems both long and short: Long-term weekly system that focuses on holding shares from a few months to a few years. Medium-term daily system that focuses on holding CFDs from a few days to a few weeks or possibly a few months

22 MetaStock Explorer

23 Runs the Scan

24 Reports Results

25 View the Charts

26 Position Size

27 Smart Trader Spreadsheet

28 Smart Trader Spreadsheet

29 Smart Trader Spreadsheet

30 Smart Trader Spreadsheet

31 Smart Trader Spreadsheet

32 Smart Trader Spreadsheet

33 Real Trading Long and short Winning and losing Range of different exits

34 Long CFD Trades

35 Biota Holdings

36 Centro Properties

37 Minara Resources

38 Mount Gibson

39 Perilya

40 McPherson s Example: Breakeven Trade

41 BHP Billiton Example: Losing Long Trade

42 Short Trades

43 Babcock & Brown

44 Pacific Brands

45 FKP Property Group

46 Commonwealth Bank

47 Alesco Corporation

48 Just Group Example: Losing Short Trade

49 My CFD Trading Results Each year I share my CFD trading results over a set period: 2007: Competed in the CMC Markets 2007 Trading Comp - achieved a top 5% ranking with an 82%* in 8 weeks October 2008: I kept a 6 week trading diary to show how I traded CFDs during an aggressive bear market - increased my CFD account by 300%* in 6 weeks This year I shared all my trades through a 4 month Teleconference program increased my CFD account by 262%* in 4 months * The returns are provided for info purposes only. Results of past performance are no guarantee of future returns. No assurance is given that you will incur any profits or losses in your own trading & it should not be assumed that you will experience results comparable to those reported

50 Do you have a Trading Plan?

51 Trading is a Business In order for a business to survive, it must have a plan When you trade the markets, you are putting money at risk with the goal of achieving a profit, just like any small business So you need to treat it like a business and have a plan that sets out how you are going to manage it If you already have a plan now is a good time to review it based on the past market conditions

52 SMART Trading Plans Step-by-step guide to developing a trading plan

53 SMART Trading Plans Listed as one of the top 10 trading books for 2008 in the ASX December 08 Newsletter FREE bonus planning templates valued at $59 Complete with Smart Action Steps Includes case studies of my trades from 2007 the CMC Markets Trading Comp where I achieved a top 5% ranking with an 82% return in just 8 weeks Appendix A shows completed trading plan Price $32.95

54 Other Smart Trading Products Smart Technical Analysis Home Study Course Smart Trader Spreadsheet Smart Teleconference Program Recordings Share all my trades from May to Sept 2009 and show how I increased my CFD trading account by 262% Smart Trading Plan & Syst. Development Course Ultimate course in which I teach all my systems & strategies and provide all the MetaStock codes to my systems Smart Traders Mastermind (exclusive to clients only) Visit for more info

55 Reminders

56 Exclusive Smart Trading Offer (on ASX share CFDs) A reduction in the commission charged to 0.08% A discount of 0.25% in the overnight financing rate Ability to set market triggers orders (also known as stop entry orders) Free movement of GSLOs Trade shares from $19.95 brokerage with free conditional orders Must mention Smart Trading to get this offer

57 CMC Markets To access these features you need to set-up a new account with CMC and mention Smart Trading Canice Kinnane CFD Sales Executive CMC Markets Asia Pacific Direct Number: Toll Free Number: c.kinnane@cmcmarkets.com

58 Buy My Book Become a Smart Trader today and set yourself up with a clear and concise trading plan Available for $32.95 from

59 20 Most Common Mistakes & How to Avoid Them Includes interviews with 18 world renowned traders Available for $32.95 from

60 When you get home visit and download your FREE special report 10 Tips to Smarter Trading