Justine Pollard
www.smarttrading.com.au
December 2009
Disclaimer
• This presentation and the training services provided by Justine Pollard and Smart Trading Pty Ltd (ABN: 45 095 040 485) involve the supply of factual information about securities and securities markets only.
• Smart Trading Pty Ltd is a Corporate Authorised Representative, AR No.336312 of CDM Pacific Pty Ltd AFSL 223682 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.
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
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
CFDs
CFDs are becoming increasingly popular
because they offer many benefits that the stock market does not
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
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
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.
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
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
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
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
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
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
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
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 $9.95 + 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
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: 02 8915 9244 Toll Free Number: 1300 303 888 Email: [email protected]
My Trading
Approach
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”
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)
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
Real Trading
Long and short Winning and losing Range of different exits
McPherson’s
BHP Billiton
Just Group
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
Do you have a
Trading Plan?
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
SMART Trading Plans
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
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)
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
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: 02 8915 9244 Toll Free Number: 1300 303 888 Email: [email protected]
Buy My Book
Become a Smart Trader today and set yourself up
with a clear and concise trading plan
Available for $32.95 from
20 Most Common Mistakes
& How to Avoid Them
Includes interviews with 18 world renowned traders
Available for $32.95 from
