Train with Chris Tate and Louise Bedford, and you’ll harness the skills required to hit the ground running when it comes to trading the sharemarket. The world’s millionaires know that investing in the stock market is essential. Slash your learning curve and develop the foundation to trade the market like a professional. Read more about the sharemarket and how you can get involved so that you too can trade with confidence.
The Reasons Why You Want To Trade Are Obvious:
- You want to make money, living by your wits, and not relying on the fickleness of the economy or your boss.
- You can run your business from anywhere in the world, with as little as 30 minutes per day. You are in control, so the sky is the limit.
- You never have to deal with employees or aggravating co-workers. Crank the music and work in your pyjamas if you feel like itÖ
- You can use a system you create, where it’s possible to bang an influx of money into your account again and again. You can learn new trading tools as you progress, and be responsible for an unparalleled lifestyle for you and your family.
- Even if you’ve tried to trade in the past and it hasn’t worked for you, giving up now could be the worst decision you ever make.
You owe it to yourself to learn more about the share market. Here is an ideal place to start.
No More Being Left Behind
Share trading is traditionally the first form of equity investing most traders become involved in. When purchasing a share you are in essence buying a stake in the underlying company ñ as such your investment is subject to the volatility that equity markets experience. However it is this volatility that affords traders the opportunity to generate higher returns than they would elsewhere.
The benefits of share investing are many and include –
- Low barriers to entry so even small sums can be invested.
- High liquidity – most listed shares especially blue chip shares have very high liquidity which means investments can be moved very quickly.
- Diversification – traders can spread their funds over a wide variety of company sectors.
- Outperforms other sectors – traditionally over the long term sharemarkets have outperformed all other forms of investment.
- Tax benefits – tax has already been paid on the dividends you receive so depending upon your individual tax rate the dividends may be tax-free. In addition to this assets held for 12 months or longer are subject to a 50% reduction in capital gains tax.
- Low transaction costs – brokerage has now dropped to as low as $13.95 per transaction.
How Chris and Louise view trading
Our view is that traders should be in charge of their own financial decisions. We place our emphasis on educating the trader to make informed decisions for themselves – rather than relying on brokers, economists, or financial planners. Our approach to trading is ‘technical’ which means that we use computerised technical analysis tools to in essence make a decision as to whether the bulls or bears are in charge. Then we work out whether we should be buyers or sellers.
Due to the technical nature of our trading we don’t utilise ‘fundamental’ information such as company reports, balance sheets and the like. We feel these are too subjective and are prone to interpretation and that they are based upon a misunderstanding of the nature of trading.
Most fundamental analysis is based upon the notion that investors behave rationally when faced with an economic decision. Unfortunately most people who have experienced markets will attest to the fact that this is far from the truth. As an example of investor irrationality consider the following chart of JDS Uniphase (JDSU). At the end of 1998 was valued at $US69.37 some 15 months later it peaked at $US1227.38. This is a gain of 1669.32% in just over 15 months.
Yet curiously throughout this phase JDSU made no money – in fact their losses were ballooning at a staggering rate. So the question is what drove investors to pay such prices for a stock with very few real business prospects – the answer is simple – irrationality.
We have no real view on whether irrationality is good or bad. However, it does present opportunities for profit.
Skip the learning curve
Fundamental analysis seeks to detect which shares have a probability of increasing or decreasing in value based on announcements, company balance sheets and profit/loss details. The big issue is whether fundamentals have a direct effect on the share price. Many times I’ve seen a company release a great profit result, and the share price turns down the next day. Even a surprisingly good track record does not necessarily ensure sharemarket success. It is perception that drives share price action. Quite literally, you could spend years on this type of analysis and never make a cent out of trading. There is a better way.
Get it right the first time
There are more people making money out of technical analysis because they are capitalising on the flow of money. Technical analysis is a method used by an increasing number of traders to determine entry and exit points. Some misinformed investors feel that this method is somewhat akin to reading tea leaves or tarot cards because it involves a degree of subjective interpretation. However, even fundamental analysts differ in their interpretation and projections; so let me assure you that this is definitely an area worth investigating.
Technical analysis involves reviewing actual price and volume action on share price charts to reach conclusions about the likely future direction. Louise says: “In general terms, I’m the type of girl who doesnít care why the pair of shoes is on sale – I am just in seventh heaven to see them at 50% off. That’s why I focus on technical analysis and share charts. I have tried using fundamental analysis to trade, but for me, the true indication of market sentiment is gleaned through looking at charts, rather than analysing reams of ratios. The benefit of this method is that it crystallises the market sentiment by displaying information in a visual format. The majority of people think in ‘pictures’ and so relate to the pattern recognition that technical analysis requires. Rather than analysing figures, ratios and prices, technical analysis allows you to look at a chart that displays all of the information you need to trade proficiently.”
Technical analysts believe that everything known and unknown about the share is already factored into the share price. Often by the time a media announcement is made, the share price has already displayed signs of reaction. It is this share price action that a technical analyst uses to detect buy and sell signals. Technical analysts often don’t know the reasons behind the share price increase, but they are willing to buy the share based on the charting patterns that it presents.
Struggle is over-rated
If you’re frustrated with the struggle, you need to immerse yourself in this information. Technical analysis is a way that you can get the inside scoop on an early source of inside information. If the insiders know a pertinent piece of information about the company, they are likely to act on it prior to releasing it to the public. Their actions will show up on the share chart as either buying or selling pressure. You don’t need to know why the share price is going up, you only need to observe that it is going up. The actual reason for the price increase is of little consequence. It should not make any difference to your ultimate purchase decision.
The majority of technical analysts tend to be ‘trend-followers’. They wait for a trend to display a particular direction, prior to taking action. For trend-followers, there are a few simple rules. The first rule is that if a share is trending up, then buy it. The second rule is if itís going down, then sell it. Many people over-complicate trading, but in essence, if you become good at reading the direction of a trend, you are well on your way to trading like a professional. Technical analysis is part art and part science. The more you use it, the better you will be able to interpret the signals.
There are some traders who continually try to trade against the prevailing trend. Over time, people who trade against the trend will ultimately run out of money, and self-destruct.
Some traders seem intent on getting in at the bottom of a trend, and out at the top of a trend. Your friends may be impressed if you tell them that you rode the entire trend, but in all likelihood, the pursuit of this ‘perfect trade’ will leave you penniless. This has more to do with ego than with any objective form of technical analysis. It is practically impossible to repeat this activity with a high degree of probability ad infinitum.
Successful technical traders have a defined set of rules to enter a trade, and to exit from the market promptly at the first sign of a downtrend, or to preserve their capital after the share has retraced in value. They maximise their profit potential through dedication to the principles of money and risk management.
“But am I clever enough to make money through the sharemarket?”
They’re trading brilliantly. The really high IQ people, with a Doctorate in Advanced Astrophysics first of all have to learn how to stop over-analysing. If you have a system that works, you’re willing to change the way you think, and if you have the ability to focus, you’re three quarters of the way there.
Take the guesswork out of the sharemarket
So, if you’re keen to learn more about shares and share trading, you need to turn to experienced traders who have the knowledge, experience and cutting edge techniques to help drive your account into profit. Chris Tate and Louise Bedford are among the best in the business, and have several products focussed on shares.
The Introductory Pack
Have you always wanted to get involved in the sharemarket, but haven’t been sure about where to begin? Here is the solution.
The Intermediate Pack
So you’ve grasped the basics of trading, but you’re not quite sure how blow the lid off your trading potential? The Intermediate Pack is exactly what you’ve been looking for.
The Advanced Pack
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