G’day Traders,

Well I always said that September brings big moves, but I didn’t really expect it to happen on the 1st of the month. Last night we got some significant moves, but before we get the really big moves, let’s review the last few days as they can provide an invaluable lesson for many traders.

Over the past couple of days some traders have emailed in saying that they read my update and have made big losses recently on the JPY pairs. A few even admitted to taking all four JPY pairs, had too much risk and lost substantial amounts of their accounts.

Besides saying that this horrifies me every time (and it really upsets me when I hear a client has lost money) it is really bad to hear because I have deliberately put an emphasis on risk over the past week. On the 30th I even made the point of saying to beginners to just trade four pairs and focus on risk.

(continue reading…)

Hi Traders,
The September Edition of our Lifestyle newsletter is now available. This issue is packed with the tools, techniques, analysis and real life experiences of industry experts to keep you informed and on the right track to achieving financial freedom.

Be sure to check your inbox!

P.S. If you have not yet signed up for the Monthly Newsletter CLICK HERE!

G’day Traders,

Yesterday was surprising. Firstly, for the positive news and secondly, for the lack of reaction. This just shows you what the markets can be like in Summer.

I posted some interesting articles on Twitter last night. A little bit of light reading, but as you may see at the Summit being able to know how to act on that information is the important thing.

On the housing data – that should have pushed the market higher as it conflicts with the really negative stuff from last week… or does it? For some reason house prices held up in US cities recently. It’s the low number of sales (not the price) that had the markets worried last week. Still it was good news and I thought the markets would lap it up.

(continue reading…)

G’day Traders,

Last night I watched a stockbroker on TV being so positive about the markets. I was thinking – wow – these guys really go on an emotional ride and if you are on TV you are probably pretty good right?

Well it saddened me that this industry is SO reactive to a point where their emotions are linked to whether or not the ASX goes up or down.

That was when I went to bed… I woke up and looked at the market and though…. Oh no!

This wasn’t for my trading, but for yours. I feel like I really need to give you guys confidence because I knew some of you would be down after Friday. I know that the probability of signals like yesterday’s turning out to be nice trends is high because they all turned at once. Therefore, you need to trade this with the correct risk rules.

(continue reading…)

G’day Traders,

If you don’t read past this paragraph I want you to take one clear point. Correlated Signals – such as Friday – mean higher probabilities of good moves. You should also read the notes on risk in my bottom section.

One of the things that is a big disappointment to me is when I see something like what happened on Friday. You see, when all the markets turn like they did I hear the majority of clients disappointed in giving up profits. You see this kind of move – where just about everything goes against you is the markets’ biggest trick!
(continue reading…)

G’day Traders,

Firstly, I have to say that many stockbrokers seem to have their heads in the sand. I recall late 2007 when the markets were already moving down. They said it would come back. I said move into safe, liquid assets like cash. Every stockbroker I have ever worked with has this idea that stocks are a good investment. I still speak to them and they are still saying that. It’s ridiculous when there are so many risks out there.

They say they want to help you, but they still want you to own stocks even if you believe the risk is crazy. No wonder investors hesitate. They think “Oh, he is a stockbroker so he must know”. I have used some that were knowledgeable, but that was years ago and I was lucky to be strong-minded because most of their best recommendations turned out to be duds.

(continue reading…)

G’day Traders,
Today will be a little different. I am going to be a little tough on you because I want you to make money. Then I am going to show you the amazing possibilities of a falling market.

• You are not going to make money by switching products that look like they are doing better.
• You are not going to make money by copying another trader’s strategy.
• You are not going to make money if you add more products just because what you have done has made you a profit.
• You are not going to make money if you take huge leaps up in size because in the last two weeks you have done well.
• You are not going to make money if you are not trading (especially in times like this).
• You are going to lose money if you just leave your money invested in equities in a bear market (this may seem pretty obvious, but do you have a net long position in equities when you think of all of your investments?).

(continue reading…)

G’day Traders,

Last night I was fortunate enough to hear Peter J. Daniels speak at a local church. Peter is 78, from a disadvantaged background and became a very wealthy businessman, a famous motivational author and the world’s highest paid speaker. An avid reader who meets regularly with UN and World Bank officials, last night he said that the greatest crash the world has ever known has started and it will be at its worst in September/October next year.

Do I agree with him? No, I believe the markets will drop below last year’s lows and down to about 500 in the S&P500. If Daniels is right it would have to be over a 90% drop to beat ’29 and that puts it at around 150!

(continue reading…)

G’day Traders,

IF you are an Options trader make sure you have no unwanted stock positions today – you need to contact us as soon as possible if you have a stock position, especially if you use Trade For You. If a client has an unwanted position and doesn’t advise us then we can’t be responsible for any losses.

Well I can’t miss talking about the Australian election today as it is affecting markets. The AUD is down due to the likely hung parliament result (but has rallied since the open). This was an outcome I thought likely and long term, positive for Australia. This is simply because US stock markets traditionally perform better when there is a mix of parties (when different parties control each house). I also believe changes in the way parliament works will be positive and because the three incumbent reps are high quality representatives.

Short term though, experts are predicting Australian markets will suffer. Long term I think what is good for regional Australia is probably good for the economy.

(continue reading…)

G’day Traders,

This morning I got up really early and attended a breakfast for business people held by Church. Yesterday, I had a great session with my business coach. Besides being an extremely valuable opportunity to take time out and looking at improving things, it also provided a different perspective, which is invaluable.

Since I have been doing the coaching not only has my business improved, but I also feel much more confident and have allowed myself to focus on what is truly important for me to add value and let very talented people do their jobs.

A different perspective is invaluable and I think our success has a lot to do at looking at different ideas and ways in which we can help our clients. Sometimes this means we move pretty fast in the hope that it will have long term benefits and we have to assess things as we move along.

(continue reading…)