Learning how to manage and build your own investment portfolio is quickly becoming one of the most popular topics on everyone’s lips. Self managed superannuation, share trading, derivatives, all topics once spoken by only the financial elite are now common subjects at dinner parties and Friday night drinks.
This interest in financial planning has been fuelled by a rapidly aging population who have realised that their lifestyles will be substantially compromised if they do not become much more financially literate and responsible.
In addition, the introduction of the Internet, financial seminars and software have all empowered the Arm Chair Investor to manage their own money. However, many of these home based investors have had little or even no formal training in funds management. Now, while it is not a pre-requisite to have a degree in order to profit from various investments, it is imperative that investors understand the basics, have clearly defined investment strategy, realistic goals and appropriate asset diversification.
Now while we all have clear financial goals – to make more money – many do not appreciate the importance of sound asset allocation, or diversification. Many people have made the mistake of putting all their capital into only one investment. Diversification is critical to the success of any long term investment strategy. But, by diversifying, you must balance your investments based on risk and reward. Putting all of your money in the bank may be very secure, however, your overall return will suffer. Conversely, using all of your money to trade in options may produce very high returns, but the risk is very high that you could lose the lot. Therefore you must allocate your assets to suit your personal level of risk tolerance.
Investment Buckets
What are Investment Buckets? Well, at Platinum Pursuits, we like to make investing fun and easy. So when we looked at the topic of Asset Allocation, we likened it to buckets.
In order to protect your money, maximise your investment returns and ensure that you always have sufficient capital to meet your lifestyle, you must properly allocate your funds.
To do this, we think of using buckets. We have two buckets to consider, the Safety Bucket and the Growth Bucket.
Safety Bucket
The safety bucket is like a safety net. This is where we put our safe, secure investments and assets, such as our house, term deposits, insurances, etc. The safety bucket will not produce a good return, but then, that is not it’s purpose. It is there to ensure that we can always meet our financial commitments and that we never risk our most important assets, such as our house.
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product - you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
Wednesday, October 15, 2008
Top-Down Approach – Strategy of Professionals (written by Daniel Kertcher)
Regardless of which method you use to choose your shares, be it technical analysis, fundamental analysis or gut feeling, the most successful share traders and investors adopt a similar approach when it comes to reviewing the market, that is, a...
Top-Down Approach.
A top-down approach refers to looking at the performance of the major global economies, such as the US and European markets. We then focus on the overall performance of our local market and see how it is performing in light of the other markets around the world. We then study the performance of the different sectors that make up our local market, such as mining or retailing. Finally, we compare and study the individual shares that make up the sectors.
By adopting this approach, we can gain a fair idea of how individual shares will perform in comparison to the larger markets around the world. Looking at the performance of just one company can be likened to studying just one tree in the forest. For example, looking at the graph of a particular share may show a sudden fall. Does this indicate bad news or an adverse shift in fundamentals within the company, or was the company simply caught up in a general market correction? It is important to understand what is happening to the forest and for that, broader measures are needed.
If studying the forest is important for the average investor or trader, it is vital for institutions and managed funds that have large portfolio holdings. The huge growth of the managed funds industry requires not only that all stock exchanges provide a broad benchmark to measure market movement, but several subindices as well, to show how each segment of the overall market is performing in relation to the whole.
To study the performance of different international markets, we use indices. An index is simply an arbitrary benchmark designed to measure the movement of some broad compilation of shares. Just as a datum is an arbitrary horizontal mark set to measure ocean tides, an index serves a similar function for an exchange: it shows whether the market tides are rising or falling.
It is for the exchange concerned to decree which shares or commodities are included in an index, how they are weighted (the basis for comparison between them) and what base-line is used initially to provide their benchmark. Once this figure has been set and the reference point established, then future movements will alter this figure up and down, in accordance with what is happening in the underlying markets.
The most popular Australian index is the All Ordinaries (All Ords). The All Ords is made up of approx. 260 companies. If the All Ords is rising, it means that the overall Australian economy is strengthening. Other popular indices include the ASX 200, which is a measure of the top 200 companies in Australia.
The Dow
The most famous index in the world is the Dow Jones Industrial Average. It is the most widely-watched of the US market indices, even though it is not representative of the market as a whole. It consists of only the top 30 companies on the New York Stock Exchange, yet these Dow stocks represent some of the biggest companies on the planet. It has often been said that when the Dow sneezes the rest of the world catches a cold. If something violent happens to the Dow, the impact will almost certainly be felt by other markets the next day.
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product - you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
Top-Down Approach.
A top-down approach refers to looking at the performance of the major global economies, such as the US and European markets. We then focus on the overall performance of our local market and see how it is performing in light of the other markets around the world. We then study the performance of the different sectors that make up our local market, such as mining or retailing. Finally, we compare and study the individual shares that make up the sectors.
By adopting this approach, we can gain a fair idea of how individual shares will perform in comparison to the larger markets around the world. Looking at the performance of just one company can be likened to studying just one tree in the forest. For example, looking at the graph of a particular share may show a sudden fall. Does this indicate bad news or an adverse shift in fundamentals within the company, or was the company simply caught up in a general market correction? It is important to understand what is happening to the forest and for that, broader measures are needed.
If studying the forest is important for the average investor or trader, it is vital for institutions and managed funds that have large portfolio holdings. The huge growth of the managed funds industry requires not only that all stock exchanges provide a broad benchmark to measure market movement, but several subindices as well, to show how each segment of the overall market is performing in relation to the whole.
To study the performance of different international markets, we use indices. An index is simply an arbitrary benchmark designed to measure the movement of some broad compilation of shares. Just as a datum is an arbitrary horizontal mark set to measure ocean tides, an index serves a similar function for an exchange: it shows whether the market tides are rising or falling.
It is for the exchange concerned to decree which shares or commodities are included in an index, how they are weighted (the basis for comparison between them) and what base-line is used initially to provide their benchmark. Once this figure has been set and the reference point established, then future movements will alter this figure up and down, in accordance with what is happening in the underlying markets.
The most popular Australian index is the All Ordinaries (All Ords). The All Ords is made up of approx. 260 companies. If the All Ords is rising, it means that the overall Australian economy is strengthening. Other popular indices include the ASX 200, which is a measure of the top 200 companies in Australia.
The Dow
The most famous index in the world is the Dow Jones Industrial Average. It is the most widely-watched of the US market indices, even though it is not representative of the market as a whole. It consists of only the top 30 companies on the New York Stock Exchange, yet these Dow stocks represent some of the biggest companies on the planet. It has often been said that when the Dow sneezes the rest of the world catches a cold. If something violent happens to the Dow, the impact will almost certainly be felt by other markets the next day.
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product - you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
Plan for Success (written by Daniel Kertcher)
To be a successful investor or trader, a written investment plan is a must! In fact, most broking firms will not allow its professional traders to trade money without a trading plan!
Each and every trader must submit their plan and have it approved to be able to start trading money on behalf of clients. The trader is then judged and compensated for how well he follows his own plan and how well he does financially. If he violates his own plan, he may be subject to immediate dismissal!
So it’s crazy for us non-professionals traders to start trading without a plan, especially when things don’t go our way, and they won‘t always go our way, you can be assured of it!
Now, before we begin to write our plan, take just a moment to think about your true investment objective. What do you want to accomplish with this trading account? Simply saying, “ I want to make money” is not an investment objective. You have to have a specific objective, like, “To outperform the All Ords by at least
10% annually”. That’s an objective.
Then you must decide what type of industry and sector of shares you are going to invest in. The energy sector, the housing sector or the retail sector are unlikely to outperform the All Ords. That means you might have to look at the more volatile, but more rewarding sectors, like the computer sector, telecommunications, etc.
This will likely give you lots of volatility in your portfolio and you’ll have to accept it or don’t get involved in that sector in the first place.
There are 7 necessary ingredients in your investment plan:
Reasonable investment objective
● What growth factor do I want to achieve?
Be realistic. Are you actively trading or long-term investing?
Risk tolerance statement
● What industries, sectors and types of shares will I invest in?
Diversification plan
● How many different types of companies do we buy on average? Between 10 –20 should be a maximum.
Price range of the shares we buy
● Do we buy $30 shares, or only the sub $10 shares? Do we invest only in Australia, or overseas too?
A defense strategy
● How much price decline are we willing to accept? Be sure to use a Stop-Loss!
Contingency / Repair plan
● What do we do in a potential large market correction? How do we prevent and/or repair large market losses?
Timeframe
● How often do we, or will we, re-assess our investment strategy? It should be reviewed every 3-6 months and updated if and when the market conditions change.
To help tailor your investment strategy, try asking yourself these questions:
1. Do I usually average down in price, or do I take a small loss?
2. How many shares do I buy and sell everyday and do I diversify well?
3. What is the usual size of my trades? 500 shares, 1000 shares, or even more?
4. When do I take my profits? When I’m up 10%, 20%, 50% or more?
5. If I have a profit in a stock, do I hold it overnight?
When you have considered all the above aspects, you will be well underway to finalising a very valuable and effective investment plan. Armed with this plan, you are now in a superb position to manage your investment capital the way you want it managed, as opposed to just shooting from the hip.
Adopt a professional approach and you will be a successful investor!
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product - you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
Each and every trader must submit their plan and have it approved to be able to start trading money on behalf of clients. The trader is then judged and compensated for how well he follows his own plan and how well he does financially. If he violates his own plan, he may be subject to immediate dismissal!
So it’s crazy for us non-professionals traders to start trading without a plan, especially when things don’t go our way, and they won‘t always go our way, you can be assured of it!
Now, before we begin to write our plan, take just a moment to think about your true investment objective. What do you want to accomplish with this trading account? Simply saying, “ I want to make money” is not an investment objective. You have to have a specific objective, like, “To outperform the All Ords by at least
10% annually”. That’s an objective.
Then you must decide what type of industry and sector of shares you are going to invest in. The energy sector, the housing sector or the retail sector are unlikely to outperform the All Ords. That means you might have to look at the more volatile, but more rewarding sectors, like the computer sector, telecommunications, etc.
This will likely give you lots of volatility in your portfolio and you’ll have to accept it or don’t get involved in that sector in the first place.
There are 7 necessary ingredients in your investment plan:
Reasonable investment objective
● What growth factor do I want to achieve?
Be realistic. Are you actively trading or long-term investing?
Risk tolerance statement
● What industries, sectors and types of shares will I invest in?
Diversification plan
● How many different types of companies do we buy on average? Between 10 –20 should be a maximum.
Price range of the shares we buy
● Do we buy $30 shares, or only the sub $10 shares? Do we invest only in Australia, or overseas too?
A defense strategy
● How much price decline are we willing to accept? Be sure to use a Stop-Loss!
Contingency / Repair plan
● What do we do in a potential large market correction? How do we prevent and/or repair large market losses?
Timeframe
● How often do we, or will we, re-assess our investment strategy? It should be reviewed every 3-6 months and updated if and when the market conditions change.
To help tailor your investment strategy, try asking yourself these questions:
1. Do I usually average down in price, or do I take a small loss?
2. How many shares do I buy and sell everyday and do I diversify well?
3. What is the usual size of my trades? 500 shares, 1000 shares, or even more?
4. When do I take my profits? When I’m up 10%, 20%, 50% or more?
5. If I have a profit in a stock, do I hold it overnight?
When you have considered all the above aspects, you will be well underway to finalising a very valuable and effective investment plan. Armed with this plan, you are now in a superb position to manage your investment capital the way you want it managed, as opposed to just shooting from the hip.
Adopt a professional approach and you will be a successful investor!
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product - you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
Trading the US markets (written by Daniel Kertcher)
Wise investors know that one of the secrets to success is to diversify. Not only between various market sectors, but also between different markets. The US market represents an ideal market to consider.
Benefits of investing in the US market
Trading the US market offers many benefits over trading the local Australian market:
● Enormous size and liquidity. The US market is over 100 times larger than the Australian market!
● Vastly superior brokerage services with much cheaper brokerage rates due to the greater number of stockbroking firms in America, which means increased competition.
● Similarly to Australia, the US markets are highly regulated, with protection systems in place to protect investors.
● There is far more information, more readily available about US companies than Australian companies, allowing investors to make more discerning choices about their investments.
Excellent websites to research company data include www.moneycentral.com and
http://finance.yahoo.com
Similarities and differences
Buying and selling shares on the US market is virtually an identical process to trading shares in Australia. The options market; however, has a few subtle differences.
Differences between Option Markets
Australia
● Options expire on the Thursday prior to Last trading Friday of the month
● 1,000 shares per contract
● Much more capital required for trading and writing covered calls
● Very few opportunities to trade due to very limited size of the market – Less than 10 highly liquid stock options
● Strategies limited to trading and covered call writing due to limited liquidity
US
● Options expire on the third Friday of the month
● 100 shares per contract
● Far less money is required for trading and writing covered calls
● Enormous number of trading opportunities – Over 500 highly liquid stock options
● Many different strategies are possible, such as Covered Puts, Spreads and much more
Education
To anyone with experience trading the Australian Stockmarket, the US market is a relatively simple transition, with respect to terminology and procedures.
However, it still pays to familiarise yourself with the various companies and strategies available before you start trading. There are quite a few books, homestudy courses and seminars available in the market. One of my favorite authors is Michael Thomsett, who has written numerous books on US stocks and options. There’s even the board game, Call Up Put Down which teaches players how to trade US options.
Looking to the future
Whilst many Australian investors have done extremely well over the past year, alas, no market can continue to rise forever. Savvy investors know the benefits of diversification. Today, it has never been easier to trade the US market, and participate in the Greatest Market on Earth!
Platinum Pursuits offer a wide range of live seminars, home study courses, DVD’s, Audio CD’s, software and other tools designed to teach investors how to trade US stocks and options. For more information, please visit: www.PlatinumPursuits.com
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product - you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
Benefits of investing in the US market
Trading the US market offers many benefits over trading the local Australian market:
● Enormous size and liquidity. The US market is over 100 times larger than the Australian market!
● Vastly superior brokerage services with much cheaper brokerage rates due to the greater number of stockbroking firms in America, which means increased competition.
● Similarly to Australia, the US markets are highly regulated, with protection systems in place to protect investors.
● There is far more information, more readily available about US companies than Australian companies, allowing investors to make more discerning choices about their investments.
Excellent websites to research company data include www.moneycentral.com and
http://finance.yahoo.com
Similarities and differences
Buying and selling shares on the US market is virtually an identical process to trading shares in Australia. The options market; however, has a few subtle differences.
Differences between Option Markets
Australia
● Options expire on the Thursday prior to Last trading Friday of the month
● 1,000 shares per contract
● Much more capital required for trading and writing covered calls
● Very few opportunities to trade due to very limited size of the market – Less than 10 highly liquid stock options
● Strategies limited to trading and covered call writing due to limited liquidity
US
● Options expire on the third Friday of the month
● 100 shares per contract
● Far less money is required for trading and writing covered calls
● Enormous number of trading opportunities – Over 500 highly liquid stock options
● Many different strategies are possible, such as Covered Puts, Spreads and much more
Education
To anyone with experience trading the Australian Stockmarket, the US market is a relatively simple transition, with respect to terminology and procedures.
However, it still pays to familiarise yourself with the various companies and strategies available before you start trading. There are quite a few books, homestudy courses and seminars available in the market. One of my favorite authors is Michael Thomsett, who has written numerous books on US stocks and options. There’s even the board game, Call Up Put Down which teaches players how to trade US options.
Looking to the future
Whilst many Australian investors have done extremely well over the past year, alas, no market can continue to rise forever. Savvy investors know the benefits of diversification. Today, it has never been easier to trade the US market, and participate in the Greatest Market on Earth!
Platinum Pursuits offer a wide range of live seminars, home study courses, DVD’s, Audio CD’s, software and other tools designed to teach investors how to trade US stocks and options. For more information, please visit: www.PlatinumPursuits.com
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product - you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
Effective Investment Strategies (written by Daniel Kertcher)
Building your own retirement portfolio can be quite a daunting task. There are many different strategies you can adopt to help your investment dollars grow. The difficulty lies in choosing the strategies that will suit you the most.
Many people believe in investing heavily in property. While residential property investments have been very popular for decades, many investors have not enjoyed strong gains simply due to poor decisions when they bought the properties. Buying property in slow growth areas, gearing too high and poor property management can leave many investors with a very sour experience, not
to mention the opportunity loss.
Over the past decade, share trading and investing have become far more popular. Many of the hassles of property investing do not exist with share investments. However, it still comes back to making the right decisions when purchasing, and then managing the investment well. The beauty of shares is that you can quickly, inexpensively and easily exit the investment if it is not performing. Conversely, you can quickly enter an investment if you feel it has strong potential.
As more and more investors become interested in the stock market, many are discovering that there is far more to share investing than just buying shares and leaving them in the bottom drawer. Investors are discovering strategies such as “Writing Covered Calls” and “Spreads, Straddles and Strangles”. In fact, there are many different strategies which allow share and options traders to reduce their risk and/or increase their reward.
One of the most exciting strategies is Writing Covered Calls. To many, these words have little meaning, but to those who know, these words mean everything. Writing covered calls has been hailed as one of the most powerful, yet simplest, forms of wealth creation.
If you already own shares and would be prepared to sell them at a higher price then they are today, then writing covered calls may be for you. In return for the obligation to sell them at a higher price, you will be paid between 2%-6% of the value of the shares.
Now, there are some restrictions and limitations. Not all shares have Exchange Traded Options (ETO) available, and hence, not all shares will allow you to write covered calls. In fact, only 64 company shares have ETO’s. The Australian market can be fairly illiquid for all but the largest companies, but once you understand the strategy, you can use it on the American markets, as that market offers the same opportunities. The only difference is that there are thousands of ETO’s available.
Platinum Pursuits hosts investment seminars most weeks, as well as 3 day training workshops, where a variety of investment strategies are taught. Various Australian experts are invited to teach topics such as Option trading, writing Covered Calls, Self-Managed Super, Tax planning and effective international share investment. Be sure to secure your place at one of our upcoming seminars!
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your
objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice,
consider the appropriateness of the advice, having regard to your
objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible
acquisition, of a particular financial product - you should obtain a
Product Disclosure Statement relating to the product and consider the
Statement before making any decision about whether to acquire the
product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
Many people believe in investing heavily in property. While residential property investments have been very popular for decades, many investors have not enjoyed strong gains simply due to poor decisions when they bought the properties. Buying property in slow growth areas, gearing too high and poor property management can leave many investors with a very sour experience, not
to mention the opportunity loss.
Over the past decade, share trading and investing have become far more popular. Many of the hassles of property investing do not exist with share investments. However, it still comes back to making the right decisions when purchasing, and then managing the investment well. The beauty of shares is that you can quickly, inexpensively and easily exit the investment if it is not performing. Conversely, you can quickly enter an investment if you feel it has strong potential.
As more and more investors become interested in the stock market, many are discovering that there is far more to share investing than just buying shares and leaving them in the bottom drawer. Investors are discovering strategies such as “Writing Covered Calls” and “Spreads, Straddles and Strangles”. In fact, there are many different strategies which allow share and options traders to reduce their risk and/or increase their reward.
One of the most exciting strategies is Writing Covered Calls. To many, these words have little meaning, but to those who know, these words mean everything. Writing covered calls has been hailed as one of the most powerful, yet simplest, forms of wealth creation.
If you already own shares and would be prepared to sell them at a higher price then they are today, then writing covered calls may be for you. In return for the obligation to sell them at a higher price, you will be paid between 2%-6% of the value of the shares.
Now, there are some restrictions and limitations. Not all shares have Exchange Traded Options (ETO) available, and hence, not all shares will allow you to write covered calls. In fact, only 64 company shares have ETO’s. The Australian market can be fairly illiquid for all but the largest companies, but once you understand the strategy, you can use it on the American markets, as that market offers the same opportunities. The only difference is that there are thousands of ETO’s available.
Platinum Pursuits hosts investment seminars most weeks, as well as 3 day training workshops, where a variety of investment strategies are taught. Various Australian experts are invited to teach topics such as Option trading, writing Covered Calls, Self-Managed Super, Tax planning and effective international share investment. Be sure to secure your place at one of our upcoming seminars!
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your
objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice,
consider the appropriateness of the advice, having regard to your
objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible
acquisition, of a particular financial product - you should obtain a
Product Disclosure Statement relating to the product and consider the
Statement before making any decision about whether to acquire the
product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
IPO - A Public Company is born (written by Daniel Kertcher)
When a private company reaches a point in it’s development that it requires an injection of capital to expand the business, then the directors have a couple of choices. One of the most popular methods is to FLOAT the company.
Floating, also known as Listing, involves taking a private company public to raise money for company growth and expansion. Members of the public as well as fund management institutions are invited to purchase shares in the Initial Public Offering (IPO).
The Prospectus
Before any company may solicit funds from the public, regulations require that it must draw up an offer document called a prospectus, which needs to be registered with the Australian Securities and Investment Commission (ASIC). This must present enough details and financial information on the company to allow a prospective investor to make an informed choice on the suitability of the shares for his or her portfolio.
The level of information that must be provided (which can often seem overwhelming to readers) is only one requirement that must accompany a listing application. Government consumer protection legislation is one consideration, but the stock exchange itself will have its own listing criteria. Such things as fees, required documentation, reporting requirements, size of the company and number of shareholders, etc. will all figure in a listing decision. For example, one requirement of the ASX is that a company has at least 400 holders of $2,000 each.
This sale of shares has occurred on the Primary Market. The money raised from the sale of shares has gone to the company to allow it to expand its operation. The new shareholders will want to see that the company is well run, professional and efficient. To do that, the shareholders will elect a board of directors to oversee the day-to-day running of the company. They do this by voting in accordance with the size of their shareholdings. This might result in, say, the election of a six-person board that selects its own chairman. Once a year, the board of directors must conduct an annual general meeting (AGM) to report to the shareholders on the company’s progress. Well in advance of the meeting, a copy of the annual report will be provided to all shareholders. All shareholders are welcome to attend the AGM’s.
Investors, particularly share traders, purchased the shares in the float with a view to selling them in the future to make a capital gain. They must therefore have a market at which to sell the shares. This is where the shareholders return once again to the stock market.
When the investor sells his or her shares, the money raised does not go to the listed company, instead, the money, minus broker commission (brokerage) goes to the investor. This is known as the Secondary Market. The Secondary Market is where the shares are traded once they have been purchased in the IPO.
This may seem staggeringly obvious; however, it raises an important point. Many people who invest in shares for the first time do not fully appreciate that the value of a company’s shares is not directly related to the performance of the company, or who the company is. Instead, the value of the shares is based on the public’s perceived value of the company. What Telstra does as a company is not as important as what
the public perceives the value of Telstra’s shares to be. There are many examples of companies that are very sound and well run, but are undervalued by the public. Alternatively, there are companies that don’t even produce profits whose share prices have skyrocketed. You only have to think back to some of the American Internet stocks such as Yahoo and Amazon.com for examples. These two companies had not even produced profits when they floated, yet their share prices rose incredibly fast, making the original owners billionaires literally overnight! It is this variance in share price and public perception that encourages share investors and allows them to make consistently high returns from the stock market.
The Bottom Line
The bottom line is that you cannot expect to be consistently successful as a share trader or investor by simply buying shares in companies that sound interesting. You must know how to investigate the company and to study the share price performance to determine which shares have the greatest potential to perform.
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product - you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
Floating, also known as Listing, involves taking a private company public to raise money for company growth and expansion. Members of the public as well as fund management institutions are invited to purchase shares in the Initial Public Offering (IPO).
The Prospectus
Before any company may solicit funds from the public, regulations require that it must draw up an offer document called a prospectus, which needs to be registered with the Australian Securities and Investment Commission (ASIC). This must present enough details and financial information on the company to allow a prospective investor to make an informed choice on the suitability of the shares for his or her portfolio.
The level of information that must be provided (which can often seem overwhelming to readers) is only one requirement that must accompany a listing application. Government consumer protection legislation is one consideration, but the stock exchange itself will have its own listing criteria. Such things as fees, required documentation, reporting requirements, size of the company and number of shareholders, etc. will all figure in a listing decision. For example, one requirement of the ASX is that a company has at least 400 holders of $2,000 each.
This sale of shares has occurred on the Primary Market. The money raised from the sale of shares has gone to the company to allow it to expand its operation. The new shareholders will want to see that the company is well run, professional and efficient. To do that, the shareholders will elect a board of directors to oversee the day-to-day running of the company. They do this by voting in accordance with the size of their shareholdings. This might result in, say, the election of a six-person board that selects its own chairman. Once a year, the board of directors must conduct an annual general meeting (AGM) to report to the shareholders on the company’s progress. Well in advance of the meeting, a copy of the annual report will be provided to all shareholders. All shareholders are welcome to attend the AGM’s.
Investors, particularly share traders, purchased the shares in the float with a view to selling them in the future to make a capital gain. They must therefore have a market at which to sell the shares. This is where the shareholders return once again to the stock market.
When the investor sells his or her shares, the money raised does not go to the listed company, instead, the money, minus broker commission (brokerage) goes to the investor. This is known as the Secondary Market. The Secondary Market is where the shares are traded once they have been purchased in the IPO.
This may seem staggeringly obvious; however, it raises an important point. Many people who invest in shares for the first time do not fully appreciate that the value of a company’s shares is not directly related to the performance of the company, or who the company is. Instead, the value of the shares is based on the public’s perceived value of the company. What Telstra does as a company is not as important as what
the public perceives the value of Telstra’s shares to be. There are many examples of companies that are very sound and well run, but are undervalued by the public. Alternatively, there are companies that don’t even produce profits whose share prices have skyrocketed. You only have to think back to some of the American Internet stocks such as Yahoo and Amazon.com for examples. These two companies had not even produced profits when they floated, yet their share prices rose incredibly fast, making the original owners billionaires literally overnight! It is this variance in share price and public perception that encourages share investors and allows them to make consistently high returns from the stock market.
The Bottom Line
The bottom line is that you cannot expect to be consistently successful as a share trader or investor by simply buying shares in companies that sound interesting. You must know how to investigate the company and to study the share price performance to determine which shares have the greatest potential to perform.
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product - you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
Mastering your mind for profit (written by Daniel Kertcher)
The stock market is made up solely of buyers and sellers. These buyers and sellers may be super huge, billion dollar institutions trading enormous amounts of money everyday or private individuals trading just one or two parcels of shares each year. Regardless, at its core, the market is made up 100% of people. People with emotions just like you and me.
You’ve no doubt heard the phrase, “History repeats itself”. Well, despite all of our technological achievements, we have still not mastered our emotions. History in the stock market always repeats itself because the markets are driven by two of the strongest human emotions, FEAR and GREED.
Markets boom and bust with cyclical regularity because of human nature. We are creatures of habit. For those who can accept this and learn to control their emotions, the rewards are outstanding. By recognising emotion in the markets, we can time our entry and exit strategies and profit from history repeating itself time and time again.
Investors like Warren Buffet recognise that investing is 80% psychological and only 20% mechanical. It doesn’t matter how good your system or strategy is. Unless you are mentally focused and as emotionless as possible, you will fail. This is much easier said than done, of course. Why? Because we spend our entire lives developing our psychological feelings towards money. These feelings are often referred to as Comfort Zones.
Comfort Zones
One of the most basic human needs is the feeling of Certainty. When we are certain of our surroundings we can rest easy and enjoy our lives. Uncertainty brings risk and makes us feel anxious and very uncomfortable. Since we were little children we have developed our comfort zones and we all have different comfort zones when it comes to money. Some of us feel that we must work very hard to make money. Others feel that they will never have money, or they don’t deserve to have money.
If you look at the wealthiest people in the world, very few live within these comfort zones. Their money comfort zones see them having an abundance of money. They believe that there is an enormous amount of money, more than enough for everyone to enjoy. They know that there are trillions of dollars circulating the world everyday looking for a home. They know how to make money and that making it is ridiculously simple.
Our emotion of certainty dictates our comfort zones. If we are certain that money is hard to make, then it will be, and we will be certain in our comfort zone. We would probably not be rich, but in our minds, we would be right. Alternatively, if we are certain that money is easy to make, and we just have to know how, than it will be easy to make, and we will be certain in our comfort zone.
Obviously, if your comfort zone has you believing that money is difficult to make, or some other negative feeling, then you will have to break out your comfort zone and climb into another one. When you do this, you will feel very uncertain. This can be very scary and is the reason why, despite all of the opportunities available, 95% of people end up broke or financially dependent when they reach 65 years of age.
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product - you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
You’ve no doubt heard the phrase, “History repeats itself”. Well, despite all of our technological achievements, we have still not mastered our emotions. History in the stock market always repeats itself because the markets are driven by two of the strongest human emotions, FEAR and GREED.
Markets boom and bust with cyclical regularity because of human nature. We are creatures of habit. For those who can accept this and learn to control their emotions, the rewards are outstanding. By recognising emotion in the markets, we can time our entry and exit strategies and profit from history repeating itself time and time again.
Investors like Warren Buffet recognise that investing is 80% psychological and only 20% mechanical. It doesn’t matter how good your system or strategy is. Unless you are mentally focused and as emotionless as possible, you will fail. This is much easier said than done, of course. Why? Because we spend our entire lives developing our psychological feelings towards money. These feelings are often referred to as Comfort Zones.
Comfort Zones
One of the most basic human needs is the feeling of Certainty. When we are certain of our surroundings we can rest easy and enjoy our lives. Uncertainty brings risk and makes us feel anxious and very uncomfortable. Since we were little children we have developed our comfort zones and we all have different comfort zones when it comes to money. Some of us feel that we must work very hard to make money. Others feel that they will never have money, or they don’t deserve to have money.
If you look at the wealthiest people in the world, very few live within these comfort zones. Their money comfort zones see them having an abundance of money. They believe that there is an enormous amount of money, more than enough for everyone to enjoy. They know that there are trillions of dollars circulating the world everyday looking for a home. They know how to make money and that making it is ridiculously simple.
Our emotion of certainty dictates our comfort zones. If we are certain that money is hard to make, then it will be, and we will be certain in our comfort zone. We would probably not be rich, but in our minds, we would be right. Alternatively, if we are certain that money is easy to make, and we just have to know how, than it will be easy to make, and we will be certain in our comfort zone.
Obviously, if your comfort zone has you believing that money is difficult to make, or some other negative feeling, then you will have to break out your comfort zone and climb into another one. When you do this, you will feel very uncertain. This can be very scary and is the reason why, despite all of the opportunities available, 95% of people end up broke or financially dependent when they reach 65 years of age.
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product - you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
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