Traders’ Secrets is something that everyone would like to know, right?
How is it possible that some traders are successful all the time while others fail to make a profit all the time?
That is exactly what Traders’ Secrets will show you.
Traders-Paradise’s team reveal all trading and investing secrets to you, our visitors.
What will you find here?
How to find, buy, trade stocks, currencies, cryptos. You’ll find here what are the best strategies you can use, all with full explanation and examples.
Traders-Paradise gives you, our readers, this unique chance to uncover and fully understand everything and anything about trading and investing. The material presented here is originated from the experience of many executed trades, many mistakes made by traders and investors but written on the way that teaches you how to avoid these mistakes.
Moreover, here you’ll find some rare techniques and strategies that are successful forever, for any market condition. Also, how to trade with a little money and gain consistent returns. By following these posts you’ll e able to trade with greater success. You’ll increase your profits and your wealth, of course.
The main secret of Traders’ Secrets is that there shouldn’t be any secret for traders and investors. Rise up your trade by reading these posts, articles, and analyses!
You’ll enjoy every word written here. Moreover, after all, your trading and investing knowledge will be more extensive and effective.
Traders’ Secrets will arm you with those skills, so you’ll never have a losing trade again.
Willy Woo, who is an on-chain metrics analyst tweeted that Bitcoin’s current charts showed Difficulty Ribbon. That indicator, according to him, points the best time to buy Bitcoin. The ribbon is composed of moving averages on Bitcoin mining difficulty.
“When the ribbon compresses or flips negative, these are the best time to buy in and get exposure to Bitcoin.”
Difficulty Ribbon also gives information on the rate of change in difficulty. According to Willy Woo, this is the sign that Bitcoin will never be at $6,000 again.
The volatility of Bitcoin is really terrifying for most people. Daily movements are something that only rare and good nerves can handle. Hey, Bitcoin jumped 20% during one weekend! At the same time, it is so impressive and exciting. Bitcoin dropped for more than $1,000 but it recovered again. What a character indeed! Of course, volatility is the nature of BTC.
But Woo is providing us a deeper insight.
The difficulty Ribbon indicator shows the best time to buy Bitcoin for the long-term.
If you open your eyes you’ll be able to see it too. for a moment and you’ll see the bigger picture. The chart that Woo shared on Twitter clearly shows the ‘ribbon difficulty’ indicator. Historically it has predicted the best times to get exposure to bitcoin during the past ten years.
This is that great moment. The chart shared by Woo, shows how the difficulty ribbon packs and turns overall negative result? It is obvious in the chart where the dark line passes above the weaker lines. This trader explains. He is expecting a Bitcoin miner capitulation next year. That will halve the supply but “add more fuel to the bull market,” as he tweeted. The point here is that reduced numbers of Bitcoin will give more power to this bull market. The BTC price will go up so, this is the right time to buy and hold it.
What is the Difficulty Ribbon?
The ribbon chart moving averages on mining activity, letting us see the variation in bitcoin mining difficulty. It also illustrates how bitcoin mining changes the BTC price.
How does Difficulty Ribbon work?
When the new coins are mined, miners are selling some of them to cover the costs of mining. That results in a bearish price squeeze. The smaller miners have to sell more to continue producing. But, after some time it grows unsustainable, and they capitulate. So, after that happen only the powerful miners are in the scene. The hashing power and network problems are lessened (that is ribbon compression) and the powerful miners will sell fewer coins to cover costs. That provides more space for bullish price movements.
When this indicator is visible?
This indicator is visible at the end of bear periods and after miners capitulation. That is the time when miners lessen their selling demands which allow Bitcoin price to resolve and then rise more.
Miners capitulate in bear periods. But it can happen when they mined only half the coins for the costs of the full mining and the Bitcoin market price didn’t achieve that level yet. The compression is visible after each halving in producing as there are fewer miners.
The first who described the Difficulty Ribbon indicator was Vinny Lingham in 2014. So, it was 5 years ago. Now, we have 10 years of historical data. Long enough to make sense to predict that this is the right time to buy and hold Bitcoin at least until next year. According to the Difficulty Ribbon indicator in the charts.
A golden cross is a technical indicator appears when a faster-moving average crosses a slower moving average. That is the simpler explanation. More important are the moving averages which create the cross.
To find this pattern you have to observe the 50-day and 200-day. Only these two periods are valid in forming this pattern. When you notice a golden cross happen you will something like this
This pattern is an extremely powerful sign of a strong bull market. It is an uptrend and traders like when seeing this on the daily charts.
On the chart above you can see the point where the lines of 50-day and 200-day periods touch each other and make a cross.
Traders always see the golden cross as a Sangraal pattern. Their opinion is that the golden cross pattern is one of the final signs of a bull market. That is a definite buy signal.
Traders-Paradise wrote about Bitcoin golden cross. But it occurs in stock trading too. For example, last time when this pattern was seen in the S&P 500 Index, the index has risen by more than 50%.
The opposite indicator is the death cross. The death cross happens when a 50-day moving average crosses from above to under its 200-day moving average. The death cross shows a bear market going ahead. When death cross appears you will see this pattern on your charts.
But our topic is a golden cross.
This cross pattern has three explicit stages. The first stage is the point where a downtrend is but you can see it is on its last legs. Why is that? The selling interest is defeated by a stronger buying interest. More traders are willing to buy.
The second stage includes the development of a new uptrend. The breakout of that uptrend is noted when the short-term MA crosses from below to above the long-term MA. And you can see the point of the golden cross.
The third stage is when the new uptrend is extended, and more gains verify a bull market. During the third stage, the golden cross’ two MA acts as support levels when occurring corrective downside retracements. The bull market is intact while the price and 50-day MA stay above the 200-day MA.
How to use the pattern
The golden cross is useful to discover the right time to enter or exit the market. This indicator is a good tool that can help you to know when it is reasonable to sell and when it is better to buy and hold.
When you are looking to buy an asset, it can happen to enter the market when the asset’s price increases above the 200-day moving average. Sometimes it is better than waiting for the 50-day MA to secure the crossover. How this can be better, you may ask?
The pattern is usually a lagging indicator. What does it mean? This means it may not happen until the market has already changed from bearish to bullish. It may be used as a sign that the bear market is finished. So, it is time to exit your positions.
The golden cross is used to trading individual assets as well as market indexes, for example, the Dow Jones Industrial Average. Also, you can use different MAs to notice a golden cross. For instance, you may use the 100-day MA instead of the 200-day. This pattern can also be viewed for an hourly chart, for example.
The bottom line
Some traders and market analysts don’t think the golden cross, also the death cross, are strong trading signals. The cross pattern is usually a very lagging sign, as we mentioned. The Cross pattern has short predictive importance but it is more relevant as proof of an uptrend.
If you missed getting bitcoin, this is the best time to consider and add this crypto asset to your portfolio. This crypto asset has a powerful recovery in 2019: Bitcoin. We can see on the BTC charts and from the market, bitcoin is now one of the best assets since it recovered at $10,000 again in 2019. It happened last month and it looks like it will stay there or climb more.
Bitcoin grows approx 163% this year. Most importantly, this time the basics are different.
Can you see that frenetic fight among banks, technology, and financial companies? Everyone wants to develop the blockchain.
We already wrote about Facebook, but there are more. Google, Square, Goldman Sacha are also the companies that invested in projects to provide a mass adoption of blockchain.
Bitcoin’s new rally could be more powerful than ever. How is that possible? The crypto traders and investors already know what creating of own crypto may cause on the market. Twitter is on its way to include bitcoin and other cryptos into its payment, Square. It is the question of the moment. We will not wait so long to see that.
Facebook announced its plans to introduce its own cryptocurrency, Libra.
Fidelity already offers to its traders to trade BTC. Amazon is very close to offering the same possibility but at the same time, they are developing their own crypt asset.
Moreover, crypto asset-backed ETFs are preparing to enter the market. That will be a really new investment class.
What is crypto-asset?
It is a digital currency similar to bitcoin and based on blockchain technology. How things look now, it will enter a bull market. This new asset is getting strong popularity!
This hype can be compared with the time of Internet adoption.
In the beginning, it was treated as a fancy freak. Do you remember that time? Okay, someone can, but someone hadn’t been born in that time. The point is that the introduction of the Internet gave a chance to many companies to be created. For example, Google or Amazon, and many others came later. The mentioned companies are among the top market listed firms.
And now, we are witnesses of the creation of the new crypto-assets based on blockchain technology.
Maybe this is a chance for you to add crypto assets in your investment portfolio. Yes, the crypto market is volatile. But it is a chance for traders to make a profit.
Bitcoin is a volatile investment, that the truth. From $20,000 in December 2017, it dropped at a bit above $3,500 next year. It was almost a $17,000 decrease. But this year Bitcoin is doing well. It recorded (and still do) steady climbing in value. Now it is traded around $10,000. Who didn’t sell bitcoin at $3,700 can make a nice profit now.
How can you as ordinary investors get in on this the most profitable odds? How can you enter the crypto asset market?
If this is an unknown field for you, you should find some guidance, you have to find some trusted expert to guide you through the market volatility to the possibilities.
Why is this so important?
Let’s say, you don’t have a lot of knowledge about crypto assets. So, how could you profit from them without that? You can find more than 2,000 assets in the market whose total value is about $250 billion.
Which crypto asset to trade? How to pick?
Wild value fluctuations happen and you may stay confused where to invest. Don’t worry, everything will be more clear very soon.
The best part is that even the investors with most suspicious can see now that crypto is here to stay. It will not go anywhere or totally disappear. The technology behind digital assets is even more firm.
Traders-Paradise wants to give a few examples of the crypto assets which you should buy.
On the top is Bitcoin. BTC should be a central asset in your portfolio. If you still don’t hold it, it is the time to include this asset to generate really high profits because the prices will grow. So, the time to buy is NOW.
You have to pick the most future proof coin. Some will tell you it is Binance Coin, issued by Binance exchange. The price of BNB tokens will be a good test. Stay informed about it.
Some others will suggest it is NEO. It will finally expand to add other cryptos and fiat. It can be one of the most interesting and hopeful purchases. Or Stellar! The guarantee plus is a connection to IBM. Further, Ethereum. You will never go wrong with Ethereum. And also, there are Litecoin, Dash, Ripple, Monero, Bitcoin cash, etc.
Bottom line
If they sound like investments you would like to have in your portfolio, what are you waiting for?
Never mind.
You have to know that some of the biggest world companies are establishing blockchain. But the most important is that the number of companies is increasing. The power of crypto assets to make money is unquestionable.
That’s because the robo-advisers give an investment chance that grows in reputation and popularity.
First of all, there is no need to have financial education if you want to use robo advisors. They are available online and all you have to do is to fill out a brief application regarding your investment intentions. An algorithm will take care of the rest.
Moreover, they are not expensive, and you will have an all-in-one: a diversified portfolio with assets you want and according to your risk sensitivity.
But still, you can find a lot of many robo-skeptics. The question is why? There is no reason. The robo advisors supported by advanced platforms, provide you many advantages, more than human advisors. As we said, they cost less and, moreover, you will pay fewer taxes.
Robo advisors employ high-quality portfolios
But let’s make a brief comparison between human and robotics. When you choose a human advisor, that person can advise you based on his/her experience and very individual knowledge which can be questionable sometimes. For example, you are new in the market and they can advise you a very complex portfolio by experts. And adjusted for different investor plans. But every investor is unique and you would like advice adjusted to your goals, your temperament, your personal aims.
A traditional investment manager will guide your investment to particular stocks and that could not be in your best interest. Also, you have to pay a substantial sum for that opportunity. Yes, you can find a fiduciary adviser, such will work in your best interest.
But all they can give you are portfolios backed by historical data of previous investment. Also, a human advisor has limited time for the clients and for the research.
But robo-advisor will give you a high-quality portfolio made with someone like you in mind. For example, the best robo-adviser will use low-cost ETFs with a powerful experience.
Robo advisor never trade based on emotions
Humans will follow their abilities and wish a risky investment. It may be successful but it might be a disaster. A human can not avoid emotions while investing. Are you able to recognize when the price of some asset is enough low to be worthy of buying? Or high enough to sell it and profit from it? Evry of these decisions are led by emotions. Very often they are guided by the emotion on what you like or not, what you suppose to happen.
The computer doesn’t have emotions when making decisions for you. So, be honest, which is better for your money?
Even beginners know that emotional investing can produce big losses. With robo advisors, you don’t have that problem. They will pick the best investment suitable for you.
Yes, robo advisor will predict the turbulence in the market but it will suggest you hold your investment until the market recovers. As you already know, when the market is a downturn you should not sell in panic, it is the worst thing you can do. Robo advisor will never tell you to do that. Rather it will advise you to stay in your investment and wait for the price swing back up when the recovery comes.
Robo-advisers use low-fee funds to build your portfolio and low-fees to handle it
The fund’s that robots uses have fees from 0.10% to 0.23%.
The majority of robo-advisers invest only in low-cost ETFs. That provides your portfolio with low fees and high liquidity.
When a computer manages your investments, you will pay a lot fewer fees. Also, you can find fee-free robo-advisor that charge nothing for advising assistance.
Instead of paying about 1% for a human advisor for managing your portfolio, the robot will charge you from 0,25% to 0,35%.
Moreover, robo advisors provide automated tax-loss harvesting.
A human can’t actually follow this action the way a processor can manage tax-loss harvesting. The best part is that for more extensive portfolios, robo-advisor can add up to notable tax savings.
Robo-advisers and automated trading are the future of investing
The high-quality providers grant you investments suitable to your individual requirements.
Robo advisors perform notably better than human financial advisers. The added advantage, they will cost you less and your all-in costs are more economical with this automated investment option.
Don’t diminish this difference. It can be worth thousands to your portfolio.
Think about it. Maybe this is the right time for you to get in this developing trend. We, in Traders-Paradise, truly believe that automated trading and robo advisors are the future of investing.
So, don’t be too conservative and take your place here. It is time.
Only your opinion counts as you are the one making the trades.
Now, that does not mean you never listen to anyone.
Weigh the information, see if it makes sense, apply what is useful!
Sometimes I get good ideas presented, and it doesn’t take long before seeing the goal which supports that idea.
The idea itself may be good, but it doesn’t always apply to my goals.
When I would try different outcomes for different goals, it might become mixed up which makes both goals fail.
Some people lose money fast, and they get very frustrated because their opinions were not their own.
When you find yourself losing money because of someone else’s ideas, review and see why you are losing. And see how well are you doing.
I’m lost?!
When you are doing your thing and just came across a new idea, you might want to throw everything overboard and go for this new idea.
You might feel you are lost once that is not working out.
What you could do is demo test this new idea first, but most don’t have the patience because of their excitement.
What you might do when you find yourself in that place is to open a subaccount and usually it is easy to transfer from one account to the other.
Use your idea on the new account if you don’t choose demo first and let your initial strategy run as usual. When this new idea is producing what you want to do, it will grow on its own, but you will always have a backup from where you already are having experiences.
Easy
It’s easy to do well as long as you have a clear target in front of you which you can control.
When you can’t reach your targets, don’t try to catch up, reduce the targets to a smaller target.
If your first targets failed, then catching up is even more difficult.
Adjust to what is doable for you, and keep the goals closeby and short.
If you commit to depositing $500 a month for the next 5 years, you might want to adjust to depositing $400 for the rest of the year and review in December.
Did your circumstances change? Was it easy to do? Do you want to dedicate more?
You might have lost your job, or got a raise? Lot’s of things can happen in between the plans you make.
Keeping your goals close makes you reach them faster, if you fail the goal, reduce the goal to what fits you at that time.
We assume you already made your decision to start investing or trading but you don’t know how to start and what to ask a broker. That is the situation where you would need a broker’s help. You already examine and find several and it is time to contact them.
What you have to do that before you open an account.
Before you open an account, you should use the internet browser. Traders-Paradise’s advice is to visit the web pages of every brokerage company you want to analyze. That first feeling about the brokerage’ site will be maybe the most important part if you want to start trading online. You must feel comfortable while you are checking section after section and it has to be user-friendly for you and you will find if the broker has a free demo account and how long you can use it before the switch to the real.
Some websites may be slower at the first visit but try them again, maybe when you first visited them the traffic was high. A large number of visitors can make the website operate slower sometimes. This doesn’t mean the broker isn’t good.
OK, you picked several brokers. So what is the next step?
First of all, you have to make the first contact. The best way is to make some phone calls or to fill a contact form and let them call you.
Be prepared, on the first call, they will tell you precisely what you like to hear. It will be so good but also, it might not be a truth. You must be aware. So, never play on the first hint. Try them more.
Always keep in mind, you need to find the right broker for you. So, you have to talk.
What to ask the broker?
You will pay for financial advice, and you will entrust your hard-earned money to some person who will act as a genuine servant of your financial future. So, you have to ask, you have to talk.
Ask if the firm has possible conflicts of interest regarding reasons to sell particular funds or products. Just ask. If you get a precise response, then the answer will satisfy many of the next questions.
Ask the broker about trading commissions.
It might be surprising but lower commissions are not always the better.
Take care of it and examine all the information you can get.
The price per trade may explain the level of customer service. If you don’t want to trade so often it shouldn’t be the subject of your consideration. In such a case it isn’t the primary if you need 30 seconds or 3 minutes to execute your trade, so the difference in commissions isn’t important too much. Will it be $5 or $25 per trade isn’t important if you don’t plan to trade very often, for example, 15-20 trades per year. But if you plan to trade on a daily base it is important.
Training and education
Also, you would like to know what kinds of training and education do they provide.
Traders and investors, both advanced and novice need constant training and education to stay up to date with the laws and practices in the trade. This includes mentorship and copy trading. Mentorship is extremely important. The legal field is changing and you would need a good mentorship to follow the best practices in order to keep mistakes minimal. On the other hand, copy trading is good for novice traders and investors but leading traders may make mistakes too. At the beginning level, they are good. After you master the trading, you should build your own strategy and approach to the trade. That will depend on your personal goals, risk tolerance, and character.
Also, important information is about other fees.
Ask the broker about them. That is information about costs of account-maintenance and inactivity fees. So, it is good to make a list of services and transactions you might need before you start the conversation with the broker. Ask them how much all of them will be a charge.
Ask a broker about the minimum initial deposit
Minimum initial deposit is something you should know before you open the trading account. We assume you know how much you can invest but does it meet the broker’s regulation? Some brokers have account minimum and you have to know is it adequate for you. This minimum has to matches your budget.
Withdrawals
You need to know how much you can withdraw and how much time it will take. On some websites, you will find wonderful information about it but once when you talk with a live person you might find there are so many differences for almost every case. For example, on the website brokerage can write the withdrawals take a few days. That is true but sometimes it isn’t. Very often it depends on how big withdrawal is or in which circumstances you want to withdraw. Ask for every single detail about it.
Customer support
This is a huge question. Ask a broker’s about customer support and services before you sign up. Is it easy to find what you want on their website or you will need to spend the whole day and click through 100 pages? Can you access to their customer support fast? Does your broker have live chat? Is there any possibility to talk face-to-face?
Banking services
Maybe this isn’t a big deal but still, you have to know all about payment methods.
The best choice is a brokerage account that can serve your banking need. The brokers now offer Visa or Master cards, direct deposit, ATM cards, etc.
Ask a broker about investment assets selection
All brokerages offer stocks traded on the major exchanges. But if you’re interested in options, bonds, currencies, cryptos ask if certain brokerages offer them. They’re not available in all brokerage.
A good broker will set realistic expectations in front of you. They will provide some valid information from their experience. They will be based on the current market and on details about your goals.
Beating the market is hard but at the same time exciting. Since it is hard for the majority, you need to add some weights to your portfolio. Without a broker, it is even harder. Statistics show that only 5% of market participants are successful. It is smart to use the best brokerage to be one of them.
Traders-Paradise recommends you to ask these questions as far as possible. Your broker has to truly serve you well. So, they should have no problem to give you honest answers.
To get started on your broker research, use our Walls
Traders-Paradise Team wishes you successful trading and investing.
Forex trading can be started with a small amount, don’t worry. Brokers usually have a minimum deposit to serve the large group of people who want to deposit as little as possible.
That definitely is a huge market for them.
In all fairness, I think the minimum deposit is not helping you.
What it does is make you think you can make a quick profit, and it’s true, sometimes you can.
The other side of that is, you don’t have much buffer to work with, so you could very easily lose your deposit.
Due to the leverage, taking the lowest amount into a trade would be 0,01 LOT also called a mini-LOT by some, and that would already take you down several percentages in Margin Used.
Then you probably are negative right away due to the Spread which varies per Broker.
When your trade goes against you, and you reach a total drawdown of about 50% of your account, some Brokers will close your trade called a Margin Call.
You would not have enough money to sustain your trade.
I’m not saying it’s impossible, but chances are that even though you managed to get your account up to $200,- it would not take you out of the danger zone.
When it does go your way, you are most likely going to take too much risk which can crash your months of hard work and stress in 5 minutes if you take the wrong trade.
What is the alternative?
When people ask me to mentor them, or if I can help grow their small accounts, the answer I have to give is just as frustrating as it is for them.
I can only tell them to keep demo trading where they can’t lose any money.
It would be unethical of me to tell them to pick a trade which I know will not work in the long run.
The best thing people can do is to gain knowledge and experience, read the articles and create a plan on how to come up with a proper account to make a start.
Career
What most do not understand is that once you really want to go for Trading the Forex (Foreign Exchange) market, it is nothing less than becoming a doctor, dentist, bookkeeper or any other occupation.
Forex trading takes dedication, patience, time and money to start that career.
Same goes for Forex Trading, it would be misleading to tell you it’s easy to do while I know how difficult simplicity can be, and often you are your own worst enemy.
You can’t become a doctor overnight, no matter how dedicated you are but you can make a start educating yourself.
Even a mentor can not magically make you a top trader in a few hours as you would still have to come up with a reasonably sized account.
It’s not that mentors do not want you to help you, but they have gone through the same education most others have and also made all the mistakes before which made them smarter over the years.
Often mentors have made all the mistakes unless they too had a mentor guiding them.
How would you feel if you lost $25.000,- in just 15 minutes and accept that as an expensive lesson? Many mentors have been in that position so you can imagine “losing a patient” on the operating table is really something else to deal with.
So if you apply to become a Forex Trader, please understand it would be similar to asking your doctor to help you to become a surgeon. If all you have is a kitchen knife, what is your doctor to do with your request?
So Forex trading is not for me?
Maybe not, maybe it is.
It really depends on who you are.
Some people have a better position in life to start than others.
I was one that had to struggle all the way and although I was set back a lot of times, I just kept learning and investing in my goals.
To me, that meant making a lot of sacrifices and thinking back, that sometimes still hurts.
Perhaps I was better off doing something completely different, but this was my goal and here I am. Who is to say what would have happened if I took another route.
Right now I just feel blessed to be where I am but it really is your choice to make a decision and do whatever it takes to become what you want to be.
People and circumstances may try to keep you away from your goals so it really takes strength to go after your dreams and there’s nothing dreamy about that.
Why would Forex be my choice?
Often I hear stories about why people start trading.
Some have a nice career but want to do something else, others want another income, some need to take care of their families or children, some are selling their business and want to move elsewhere so they need a new income. But not many of them will actually succeed in the short term.
Still, those people will work on becoming a Forex Trader.
My best guess is that those people are really dedicated to making it work, and I am working with some of them to achieve that goal.
I also know those people will be working with me for the years to come, as they will need solutions in all kinds of Market conditions.
What some do is buy a course and then they are on their own, the best they can get is some live Signals or live chatroom, but before they are there already a lot of money has been spent. I think that doesn’t work as they will not grow to a point where they can anticipate the changing Markets themselves.
It takes the experience to do that and a course alone doesn’t provide that.
When it comes down to business, you will have to go with the information you have and make it your own.
Yes, courses can help understand certain things, but in the end, it’s your money on the line and your decisions that determine the outcome.
Misleading in Forex trading
Hopefully, this gave you a little insight.
It’s misleading to accept the image of fast expensive cars and tropical beaches.
Many traders are down to earth people, realistic about the profits, and those that step out of that zone, usually are being smacked into reality within months.
So yes, there is a lot of misleading going on, but you have to be smart enough to skip through the nonsense and make sense of it all.
I will not say you can’t have those things, but it sure is a long way there starting from scratch. It’s not unusual traders are constantly learning during decades of trading.
On the other hand, it really is possible to become a very good Trader and it really comes down to who you are and what you are willing to learn and do.
Success!
So far this sounded sobering but there is, of course, the other side of the medal too.
I know some traders and others related to trading in the supporting sector, who are really hard working smart people willing to help you.
Like this article you’re reading right now at Traders Paradise, it’s all here to help you get smarter.
Many devoted people are willing to support you on your journey and it took them sacrifices to get to this point where they can.
We’re here to your benefit, serving you the best we can, so one day you too will be successful and have changed your life.
We’re not selling you a glamorous picture, but the reality of what it means to be a Trader.
Most traders still have jobs on the side and some really made this their career, and I admire those people no matter where they are on their journey.
A common characteristic is, they will not give up on their goals and the rewards will be worth it eventually for them.
It’s up to you if you will join that group or not but hopefully, this article has given you a fair look at both sides of success.
The Australian stock market history begins with six exchanges in Sydney (1871), Hobart (1882), Melbourne (1884), Brisbane (1884), Adelaide (1887) and Perth (1889).
The first Australian convention was held in 1901. At first, the exchanges attended on an unofficial base. In 1937 the Australian Associated Stock Exchanges (AASE) was founded. Every exchange had its representative. Over time the AASE set consistent listing laws, broker practices, and commission charges.
Trading was handled by a call system. An exchange worker called the names of each company and brokers bid or offered on each.
In the 1960s this turned to a post system. Exchange representatives called ‘chalkies’ wrote bids and offers in chalk on blackboards. They also registered transactions made.
The start of the modern Australian Stock Exchange history was in 1980 when the Melbourne and Sydney stock exchange indices were replaced by Australian Stock Exchange indices.
After that date, many changes followed. Very fast. So we can say that Australian stock exchange history is full of changes and improvements.
Today, the Australian stock market is one of the most important.
This country with a small population became one of the biggest players in the global market.
There are a lot of facts about the Australian stock exchange that might be valuable for you. For instance, the Australian stock exchange is opened between 10 am and 4 pm AEST on working days.
The market opens in phases through the first ten minutes of trading.
To prevent the precise forecast of the first trades on the given day they established a chance factor into the opening.
The ASX closes between 4.10pm and 4.11pm with a single price auction. That price determines the closing prices on the given day.
The largest ASX broker is Macquarie Bank, one of the biggest Australian banks. Also, the dominant broker’s companies are Goldman Sachs, CSFB, UBS, Citigroup.
The ASX is a public company too. Its shares are traded on the ASX, of course. However, the corporation’s license limits the highest individual holdings to a small part of the company.
ASX is regulated by the Australian Securities and Investments Commission (ASIC).
Average daily turnover in ASX is A$5,6 billion and a market capitalization of approximately A$1.9 trillion. That makes it one of the world’s highest 15 listed exchange groups.
ASX is, let’s say that, similar to the Canadian markets. It has commodities focus. So, we can say that the Australian stock market is ‘heavy’ because of the high volumes of natural resources, such as minerals and metals, are traded.
Of the 2185 stocks listed on the ASX, approximately 33% are junior metals and mining stocks by number, but the whole Materials sector is about 15% of the ASX by index weight.
As a difference, financials are estimated for 5% of the number of stocks listed. But it is the biggest sector in the sense of market capitalization, and it is 36% of the index.
Stocks are classified into sectors according to their major business type: financials, materials, health care, industrials, etc.
How to buy and sell shares in the Australian stock market
The most common way to buy and sell shares is on the share market using a broker or service.
Also, you can buy shares through a prospectus when they are first placed on the market. You can buy or sell stocks indirectly over a managed fund. There is also always a way to buy shares through an employee share system.
If you are looking for the cheapest fees, an online trading account could be the right choice. The fee to buy or sell a package of shares starts from around $30. You are charged when you buy or sell a share.
Why modern German investors are rioters? Read HERE
If you use a full-service broker you will be charged more. But you will have some financial advice. For example, what to buy or sell and so.
Australian law dictates brokers to give fair recommendations. Brokers must inform you about any interests they may have in investment arrangements they suggest to you.
Brokerage fees are regularly expressed as a percentage of the price of the purchase or sale. For example, the fee on a transaction of up to $5000 will be 2.5%. For huge trades, it may be 0.1%.
Small trades worth a few thousand dollars can be moderately costly.
Companies may choose to offer their shares as a way of raising capital. This is an “initial public offering” or IPO.
In order to find if investing in IPO suits you, it is recommended to read the prospectus. There you can find all the important details about the company.
This document must be lodged with the Australian Securities and Investments Commission (ASIC). You can check it through ASIC’s OFFERlist database.
All prospectuses must include data on the features of the securities being offered. That includes how many are for sale, how you can demand to buy them. Also, the information about the company must be included. For example, its progress, and financial situation, and also, the risks connected with the offer.
You can sell the shares you hold by placing a trade online or over your broker.
When you sell your shares store a copy of the trade acceptance or receipt for tax purposes. That will be smart.
Arrangement for the sale and transfer of ownership befalls 2 business days after the trade takes place. This is well-known as T+2.
If you own shares in a managed fund and want to sell them, check if there are any withdrawal costs.
The Program George is talking about is the A.I. tracking your trading and gives you advice, this is also an open door to get funds to trade up to $ 350.000 AUD.
If you want your account linked for Free, here’s the link which benefits George too.
I have read your post on how to make pips profit on forex every day as a day trader.
Can you please teach me your system?
I am George from South Africa, I need to learn how to trade every day on Forex successfully and start making money with it over time. If you know in South Africa it is hard to find work. So I must learn how to make money with Forex.
Kind regards
George
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Yes, of course, I will help you George.
To do my system it does take money to do it properly.
Can I ask how much you currently have in your trading account?
Regards,
Hans Stam
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Currently, I am trading now with a 100 pips move I make a Dollar or lose a Dollar I know it it is very low but until I can get a good system in place I can up the risk
I have a $100 that I play now with and trying to learn as much as I can. I am looking for a good system that can work long term.
George
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At this point, we went over personal finances and how we can find a way to educate George regardless of his situation. Due to privacy, I will leave that part out.
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Hi Hans
WOW I have read your email probably 3 or 4 times now. You have told me you need my patience and loyalty. Well Hans I can give it to you 110%
I am a person that’s cup is not half full or half empty for you it is empty I am willing to forget everything I have learned from forex and follow you. I beg you to take the risk and help me.
No matter how long or slow it takes or even if I don’t make money for a year or 3 I don’t care as long as I know I can work towards something great that I can turn one day in something that I can use as my career.
I can make a promise with you today you will have my patience. I think patience comes also, with age I am 42 years old and have learned to be a patient person over the years.
Please take me under your wing and help me.
Kind regards
George
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Mentorship is on scene
Ok, I’ll help you.
You may have hundreds of questions, and over time I’ll answer everything…
So we’ll go step by step and I’ll try to get you into the Program.
Question, who is your Broker now and do you trade by using the MT4 Platform?
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Hi Hans
Ok Great I really hope you get me in the program. And yes there is a lot of Questions.
My current Broker where I have the $100 dollars in with is (erased)
the trading platform is a MT5 platform
I am quite new to the platform
I am very used to the MT4 platform but if you like what I can do I get paid every month on the 25th I can easily open a $100 to $150 live account somewhere else if you like?
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We’ll get to that.
Both MT4 or MT5 is good.
How old is that account approximately? in months/years?
I don’t need an exact date, but an estimate.
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Again, some personal details are left out from publishing
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Thanks Hans you have given me hope again in life. Will jump on it right away.
I will read your article now and follow the steps
I will open also the live account with the broker you perhaps mention in the steps.
I will get back to you after I have done this 🙂
Thanks again Hans
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The basic explanation of how the Market works was given to George with about 30 years of experience and knowledge.
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This is mind-blowing information Hans
I really never ever realize this or how this actually works.
That is good then when I told you I am emptying my cup and learn from you from scratch.
I am so excited to learn this different way we are going.
This is really mind-blowing what I have just read.
I understand clearly so far.
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Taking the Red Pill
More info was given to George. Here is where I opened his eyes to what causes losses, and how to make profit
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Hans this is like the Matrix movie did I just take the red pill?
Sorry for taking so long to respond I read sometimes your lines 10 times over and think about it and then let it settle in.
I understand so far I can not wait to see it on paper when we start to trade.
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Yes, we will 🙂
Keep that in mind as we will come back to this later.
And yes, you probably did take the Red Pill 🙂
We are going to enter into a whole different way of trading 🙂
If you understand this principle, you are way ahead of 90% of the traders.
On track so far?
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WOW man I am on track so far
I can not wait that you show it to me when we actually start to trade on a demo account.
But yes I am on track I can not wait to see this on a platform
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You may understand a lot of info was left out in this article due to sensitive information, but it gives you a taste of how we went through the process.
We have set up his accounts and he is now trading backed up by a lot of information and knowledge. His trading experience was changed in 2 days of which you probably now have read 10% of all communication.
Here is what George had to say after his trades were set and running for him.
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I have a mentor that is teaching me how to do forex trading.
His name is Hans Stam.
I like to write today a bit of my personal experience working with a mentorship.
I was trying to do forex trading on my own for many years even read some books. Even after years I still make huge mistakes with forex trading and cannot find myself making a profit. I have contacted a Mentor called Hans. I really did not expect him to return my email at all, but suddenly in the same day Hans send me an email back and not just a simple short email but a proper email like you can see this person really wanted to send the email.
Well, my mind was blown away! It is so much different to actually talk to a person that you can see and have 30 years + experience in trading. All of my book training just went out of the window after we have talked a bit nothing can replace dealing with a person one on one and actually learn from a master.
He really knows how to be a mentor. From the start, his explanation is simply awesome. The reason I say this is because everything he explains to me is in real simple terms and in details. Every time I think I have a question he answers it automatically if he knew I will ask that. Even when I ask a question I get instantly quality feedback like he is here right next to me guiding me slowly so that I can understand every part of the training.
What I love the most when it comes actually down to business and we have to start with the trading Hans is taking the lead and show me step by step on my account what needs to be done and then he turns around and say you do it. What better way is there hands on and when I make a mistake or have a question I can just ask him and he will show me and explain to me in detail.
My eyes are clearly open today honestly I wish I have found Hans years ago and working with a mentorship. If I have done this years ago my life would have been much for the better already.
With a mentor, you can learn so much more than a book can teach you. Yes, a book can teach a person but not every person is the same and if you have questions the book will be quiet and you will be lost. I have read trading books where I was lost in the first quarter of the book and I had to put the book down because I don’t understand it and there is no one that can explain things to me.
I will really advise any person that likes to learn trading to get themselves a mentor it is really crucial for your education and your life.
Have you ever asked yourself who are the best Australian investors of all time? We are going to introduce you just a few of them. They are the best Australian investors of all time. They are unique, specific and extraordinary.
Richard “Dick” Fish
Richard “Dick” Fish, one of the best Australian investors
Richard “Dick” Fish is one of the best Australian investors. He is retired now, but while he was an active trader, he was a legendary pairs trader.
He holds a 10-year track record that is extraordinary and no one has such record before.
He was trading over Listed Investment Company, so-called LIC.
LIC is a listed investment vehicle that gives investors access to a diversified portfolio of shares in some other companies also listed on the stock market. LICs are listed on the ASX.
Richard “Dick” Fish had a very specific and risky strategy of the fund. How does this fund’s strategy operate?
The fund performs this by trading pairs of stocks. They are betting on one and betting against another (well-known shorting). The returns are provided based on how the stocks perform relative to one another.
Here’s an example.
A pairs trader saw that company ABC was a better stock than the company XYZ. So the trader would take a long position in ABC shares and short sell XYZ.
If the market fails off and both shares drop, the trader will still make a profit if XYZ falls more than ABC, because the short position profits will be larger than the loss of keeping the ABC shares.
If the market grows and ABC earns more than XYZ, again the trader will profit because the gains in the “long” ABC position will more than cover the losses from betting against XYZ.
In short, if both stocks are moving in the proper direction, that is ideal, but the investor will make a profit even if just one stock goes up.
This strategy is extremely risky but Richard “Dick” Fish was the master of this game.
The “pairs trading”, is a risky way to make money but very powerful when it serves.
The downside, of course, is that both stocks could move in the opposite direction to what was formerly expected.
The strategy is liberated from the limitations of an index benchmark and the vagaries of global markets.
This the reason why this strategy is defined as stock-picking in its absolute form.
“It sounds trite, but investing is simple and one way of simplifying it is to take out the risk you can’t control,” said Fish.
Sam Shepherd
Sam Shepherd, one of the best Australian investors
The LIC was managed by Richard Fish and Sam Shepherd who were the fund managers behind the highly successful Bennelong Long Short Equity Fund. That fund produced annual net returns of 18.14% between February 2002 and September 2015. The fund was only open to institutional investors.
Sam Shepherd joined the team in May 2012, after 21 years of Australian equities experience.
Just before he joined the Bennelong Long Short Equity Fund, he was Head of the Melbourne institutional equities desk for Credit Suisse. On this position, he held the research sales, account management, and execution. Earlier, Sam Shepherd was a sales trader and research salesman at JP Morgan.
The first seven years of his career he worked at Norwich Investment Management. He was a dealer, analyst, and portfolio manager. Sam Shepherd has a Bachelor of Commerce and a Graduate Diploma in Applied Finance and Investment.
Portfolio Manager, Sam Shepherd, retained portfolio management responsibilities and the management of the team after Richard “Dick” Fish departure. Sam has 24 years of Australian equities experience, with the last five workings alongside Richard at Bennelong Long Short Equity Management (BLSEM).
Led by Sam Shepherd, BLSEM has a highly experienced team.
On BLSM official website we found
“There is no change in the approach to the day-to-day management of the portfolio. Portfolio management is clearly defined and is managed in a highly disciplined way. Decision making is team-based, and that has been the case for a number of years.”
Richard “Dick” Fish and his business partner Sam Shepherd are an Australian investors dream-team.
Kerr Neilson
Kerr Neilson, one of the best Australian investors
Kerr Neilson is an Australian investment manager, the co-founder and managing director of Platinum Asset Management. He was born in Johannesburg, South Africa and earned a Bachelor of Commerce degree from the University of Cape Town. Also, one of the best Australian investors.
Neilson began his financial management job in the investments division of Courtaulds in London.
But he returned to South Africa in 1973. Ten years later he moved to Australia to become the head of retail funds management for Bankers Trust Australia. Today it is BT Australia.
Georg Soros provided him initial backing to establish the Platinum Asset Management fund in 1994.
Platinum concentrates in international equities and has an estimated $US16 billion in funds under management. Kerr Neilson is a managing director and portfolio manager.
In 2007, Neilson set 20% of Platinum Asset Management on the Australian Stock Exchange. The 57% of the company’s shares he held were valued at A$2.9 billion. That made him one of Australia’s wealthiest people.
Neilson is frequently compared to Warren Buffett for his talent to consistently pick high-performing stocks.
However, in business, not everything is spring and flowers. Bad results during 2012 produced a 16% drop in net profit, essentially due to a 14% decrease in investment income. Neilsen was forced to abstain from a bonus and an increase in his salary. As the major shareholder of Platinum, Neilsen yields A$42 million in dividends during 2012.
The accent was on renewing the prosperous investment strategy he had used before. This required structuring portfolios of the companies that were experiencing change or mispricing. The reasons can be different, the temporary factors or biases practiced by market participants.
By investing in such companies around the world, Platinum held really differentiated portfolios and delivered excellent investment returns.
When his investment philosophy was totally implanted within the team, he resigned as the Chief Investment Officer in 2013. Over time Kerr Neilson stepped out of his various duties and delegate them to other global portfolio managers in the team. With the full approval of the Board, Neilson handed over the role of Chief Executive Officer of the Platinum Group to Andrew Clifford in 2018.
Proceeding to work as a full-time executive director of the Platinum Group and a member of Platinum’s investment team, he is completely involved in the business.
Robert Dobson Millner, one of the best Australian investors
Robert Dobson Millner was born 4 September 1950.
After leaving the school he acted as a stockbroker for two years. Almost 14 years he farmed in Cowra, New South Wales. In 1984 he entered the family business, Washington H.Soul Pattinson, as a manager. In 1997 he was named deputy chairman of Souls and since 1999 he has been Chairman of the company.
He is the leader of many big Australian organizations. For example, he is chairman of Washington H. Soul Pattinson, as we mentioned, further, New Hope Coal, Brickworks Limited, Choiseul Investments, and NBN Television.
Robert D. Millner is a director of Milton Corporation Limited since 1998 and appointed chairman in 2002. Chairman of the Investment and Remuneration Committees. Millner has vast experience in the investment industry.
Milton Corporation Limited is a publicly owned investment manager. The firm conducts separate portfolios. It invests in the public equity and fixed income markets of Australia. The company also invests in trusts, real estate, and mortgages. Milton Corporation Limited was founded in 1938 and is based in Sydney, Australia.
He is been called the hardest-working man in corporate Australia.
Robert D. Millner is also the head of Pitt Capital Partners Ltd. It provides business consulting and advisory services. The Company offers a range of corporate finance advisory services in relation to mergers and acquisitions, equity capital markets, private equity, restructures, and debt funding. Pitt Capital serves customers over Australia.
