Essential Trading Guidelines

So You Want to be a Trader or an Investor?

The Market Cycle

How to Select Stocks

When to Buy a Stock

When to Sell a Stock

Risk Management

Psychological Considerations

The answer is Stockmarket Master.

Your Task

How Can Stockmarket Master Assist You?

What Do You Receive When You Purchase Stockmarket Master?

So You Want to be a Trader or an Investor?

The trading and investment industry is a very large and diverse industry, with more than US$4 billion being traded throughout the world each day. Large sums of money have been made (and lost) by people investing in coins, stamps, medals, art, gem stones, precious metals, real estate, stocks, bonds, breeding rare animals and birds, and even tulip bulbs. Stocks, bonds and real estate are the largest and most understood investment vehicles. Clearly, each form of investment has its own advantages and disadvantages.

Investing in the stock market has consistently proven to be one of the most profitable forms of investment available. This is not surprising, given the relative performance of the stockmarket during the last 50 years. In the period 1950 to 1999, A$1 in 1950 would be, in 1999, A$18 due to inflation, A$26 if you invested in Australian bonds and A$369 if you invested in Australian stocks. (Source: Personal Investor, April 2000, page 11.) Similar figures apply in other countries.

It is also rapidly growing in popularity, with 53.7 percent of Australian adults owning stocks in early 2000, and the number is rising. Australia leads the world, per capita, in stock ownership.

Direct stock ownership:

• Allows one to start with a relatively small amount of money.
• Allows one to take almost immediate action to buy and sell stocks, unlike property that takes much longer.
• Allows one to sell part of an investment, whereas real estate requires the full property to be sold.
• Has transaction costs which are much lower than those of an equivalent property investment.
• Allows investments to be monitored easily.
• Allows one to obtain an accurate valuation quickly, at any time.
• Allows one to choose a broker from a large list of reputable firms that offer a range of services at reasonably competitive rates.
• Allows one to choose from a diverse range of stocks, thus maximising ones returns while spreading the risk.
• Is free of blatant outside manipulation, due to the activities of regulatory bodies.
• Has proven to be one of the safest forms of investment, if one knows what one is doing.
• Is free of fund management fees.
• Can have considerable taxation advantages.

The following table illustrates the advances overtime made by the Sydney, and later the Australian Stock Exchange AllOrdinaries Index, at various periods.

(*Monthly average)

These figures, which exclude the dividends that would have been paid, show you what could have been achieved with a buy and hold strategy, purchasing the stocks that made up the index. Traders following a proven stock market trading system could reasonably expect a significantly better return.

As with all types of investments, there are disadvantages associated with investing in the stock market.

The main disadvantages of investing in the stock market include the need to:

• Acquire knowledge of what one is doing if one is to achieve consistently superior returns.
• Have a reasonable capital base to ensure that one is not exposing too much capital to any one investment, and to ensure that one can obtain a big enough return.
• Have the discipline to enter and exit the market when entry and exit signals are given.
• Monitor your investments.

Also, stock markets can be exposed to sudden downward market movements. (This can be an advantage, if you sell stocks short at the time!)

The good news is that, through gaining investment knowledge and experience, you can overcome these disadvantages, or at least minimize their impact.

Of course, you should bear in mind that most of the disadvantages of stock market investments are also disadvantages of other forms of investment. Also, bear in mind the unique, and often significant, disadvantages of other forms of investment before being too critical of the stock market as a trading and an investment vehicle. Gems, for example, can be stolen; property can be extremely difficult to sell at times of recession; gold can spend decades without significant moves in price, and rare breeding animals or birds can be infertile or die! Even money placed in a bank account can lose its purchasing power at an alarming rate during times of high inflation and/or low interest rates.

People are attracted to trading and investing instocks for many reasons. It is certainly true that there are considerable advantages in living the life of a successful full-time trader and/or investor. These include:

• Taking control of, and having responsibility for, ones own destiny.
• Not having to be at the beck and call of a boss.
• Not having to endure the constant responsibilities and pressures of running ones own client-service business.
• Being able to work from almost anywhere - you need little more than access to data and a telephone to place orders.
• Being able to complete ones work in an hour or so per day, or less.
• Having time for other pursuits in order to live a healthier, happier, more balanced and more fulfilling life.

What then, is the difference between an investor and a trader? Some argue that an investment is merely a longer-term trade. Others argue that the difference lies in the intent of whether you purchased the stock primarily for the dividends paid by the company, or for the capital gain.

The stock market regularly presents opportunities for astute traders and investors to make money. The key is to be able to recognize these opportunities, and to know how to trade them.

Let me explain.

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The Market Cycle

A knowledge of the stock market cycle is invaluable.The late Charles Viertel, an Australian investor who lived a very simple life, left the income from the tens of millions of dollars he made in the stock market to a range of charitable organizations when he died. The basis of his investment plan, which made him his fortune, was to buy quality stocks soon after major market dips.

People often talk about bull and bear markets. In fact, there are four distinct stock market phases - these are the accumulation phase, the ascent phase, the distribution phase and the descent phase. It is vitally important that traders and investors adapt their trading to the phase the market is in.

You must know when to hit the accelerator, and when to proceed cautiously or not at all. Aggressive stock market trading in the wrong phase can be a very expensive exercise.

The safest time to buy stocks is early in the ascent phase,soon after a bear market has ended and the very time that stocks are selling at the lowest prices that they are likely to sell for many years to come. Again, the key is to have strong evidence that the bear market has ended, and that a bull market is underway. People who buy too early often find that they have large losses. Those who have a little patience, and know the safest time to buy, can build large positions at comparatively low prices with a very high degree of safety.

As Major L.L.B. Angas, a market master in the early part of the twentieth century stated:

(Investment for Appreciation, page 142.)

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How to Select Stocks

Most people think that the key to making large profits in the stock market is to know when to buy a stock, that is, when to enter a trade or investment. They are wrong!

Stock market traders profit when the stock they buy rises in price. The faster a stock rises in price, the more money they make per month.

One advantage of trading stocks is that you have more than 1,000 stocks to choose from in most countries. It is usually possible to find several very strong stocks at any one time.

( Stockmarket Master, page 101.)

You start by focusing on the selection of stocks that are the strongest in the market. This gives you a huge advantage over the majority of private traders and investors who purchase stocks based on little more than tips and rumours. The technique used, called comparative relative strength, allows you to determine the strongest market sectors, and then, in turn, to determine the strongest stocks in those sectors. What you have then is a watch list of the strongest stocks in the market.

Return to the list of guidelines.

When to Buy a Stock

So - you have determined that the market is in the optimum phase for purchasing strong stocks, and you have selected yours trong stocks based on their comparative relative strength. The question you must now answer is what do I do with the hot stocks that I have on my watch list.

What you now need is a setup to take a trade. The key is to look at the stocks in your watch list, and to select those that have the highest probability of a strong, sustainable move. There are several filters that can be applied, including volume, and most importantly, resistance. We look to buy the stocks whose volume supports the stocks upward move, and which have little overhead resistance (or barriers which may prevent them from moving much higher).

Finally, you need a trigger - a point at which you can safely buy the stock. Some triggers have a very high success rate. Often the best time to buy a stock is when the amateurs think that the stock is too expensive.

( Stockmarket Master, page 110.)

Regardless of how strong the market is, if you don't get a high probability trigger, you don't trade! Yes, this requires a little patience, but you usually do not have to wait long if you have a good watch list. You certainly wait a much shorter time than those who buy a stock, note that it is falling, a wait until the stock recovers!

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When to Sell a Stock

Knowing when to sell is a crucially important skill. Most people who fail at trading, do so because they do not know when to close out a trade and take a small loss, or how to lock in their every-increasing profits when a market weakens.

( Stockmarket Master, page 119.)

Did you know that you can also make good profits in a falling market by short selling stocks? The fastest market moves are on the downside. Short selling (or selling a stock you do not own with the intention of buying it back later for a lower price) is a perfectly legal technique that can enhance your trading profits in a bear market. The key is to know precisely how to do this!

Return to the list of guidelines.

Risk Management

Risk management may sound like it is a boring topic, but it is arguably the most important skill for the trader or investor. The key is to be able to take low risk trades (so that you lose very little if the market moves in the wrong direction), and to let your profits run.

Understanding the power of compounding your money is one of the best ways to increase your trading capital at a rapid rate -when the market conditions allow you to do so. You must use the immensely powerful tools of pyramiding, compounding and using leverage to increase your trading profits at a faster rate.

( Stockmarket Master, page 135.)

I would be very disappointed indeed, if you did not make considerably more than 10 per cent per annum trading in the stockmarket if you follow a trading system which focuses on keeping your losses small, and maximizing your profits.

These techniques, when used together, at the right time, can produce awesome results. It is these techniques that generate the big profits - but you must know how to use them, when to use them, and most importantly, when NOT to use them.

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Psychological Considerations

Successful traders know that they must understand themselves as a trader. They must consider the degree to which they can tolerate risk.

They also know they must study how human beings behave when they are members of a crowd. It is vitally important that all traders understand this fascinating topic, as it is very easy to get caught up in the euphoria around a major market top.

Knowledge of crowd psychology can also be most profitable. If you know when greed or fear have driven a market up to unsustainable high prices, or down to unsustainable low prices, you can prepare to profit from this knowledge.

( Stockmarket Master, page 155.)

Do you want to learn to trade like the market masters? Do you want to increase your returns with added safety?

Stockmarket Masteris the only stockmarket trading and investment system, that I know of, that is designed to maximize your trading profits and minimize your losses, while at the same time allowing you to achieve your career goals, or relax, without having to be constantly monitoring your trades. Stockmarket Master is all about quality of life - your quality of life.

Stockmarket Master is not for everybody.

If you are trading more for excitement than for profits, or wish to use a very short time frame for your trades, Stockmarket Master is not for you. In fact, Stockmarket Master is specifically designed for people who want to accumulate wealth and cant afford to monitor every movement of the stock market every second of the day. Its strengths lie in the opposite direction.

Stockmarket Master is all about quality of life. Why else do you trade?

Neil Costa resigned as General Manager and Director of a highly successful company in order to enhance his quality of life. This allowed him to spend several hours per day with his family doing the very things that they enjoy. He played golf, took his children fishing in their boat and took the family on regular outings.

How could he do all this, and trade for a living at the same time?

Return to the list of guidelines.

The answer is Stockmarket Master.

The All-Important Time Commitment

Stockmarket Master is designed for people who would like to maximize their profits by trading the big market moves. The good news is that in order to stay in a trade for weeks and in most cases, many months, you need to use a longer time frame in your analysis.

This is great news for busy people.

What this means is that once you have mastered the course, you need to spend approximately one hour every few weeks updating your watch list of stocks, and a few minutes each day preparing for, or monitoring, trades.

Many trading systems require you to watch the market several times per trading day in order to move stop-loss orders. The reality is that few people have the time to do this while they are working in a full-time job or doing the things they enjoy doing.

Do you travel during business hours? Do you spend much of the day attending meetings? Do you take some time off work for sport and recreation activities? If so, Stockmarket Master will allow you to concentrate on, and enjoy these activities, without having to be concerned about what is happening to your stocks during the day.

Stockmarket Master is a unique trading system. It is not one small piece of a very large jigsaw puzzle. Once you have purchased the Course, your only ongoing expenses are for items such as stock market data (a newspaper is fine), and so on. There is no far more expensive product lurking behind the scenes that contains the real secret.

Stockmarket Master Has Been Designed to Assist You to Continue to Develop as a Trader and Investor.

Stockmarket Master has been written by one of the most qualified and experienced educators. As a consequence, it was written in a manner designed to help you to understand its principles in the shortest possible time, and with a minimum of heartache.

Yes, you will have to study it, but how can you learn anything without study?

Stockmarket Master, constantly reinforces its important message in a number of unique ways:

Master Stroke gives you important information in a simple, easy to understand manner.

Quotations reinforce important points, making it clear that they are the words of market masters:

(Truth of the Stock Tape, page 125.)

Your Task gives you important exercises to complete to ensure that you understand the key concepts of the Course:

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Your Task

You will receive your course in a high quality ringbinder. Although considerably more expensive than a mass-produced hard-covered book, a binder allows you to read the text while studying a full-sized chart on the adjacent page or you can remove the chart if you prefer. No flipping backwards and forwards when trying to read text associated with a small chart on another page. The folder also has one section for your all-important trading plan, and another for your trade record sheets.

The course is over 200 pages in length and each course is printed individually on 'high tech' paper. Included with the course are more than 30 full-page charts and diagrams. Colour has been used to provide greater clarity and to make your task easier.

Trade Record Sheets

You will receive trade record sheets, which are forms you will complete prior to each trade to ensure that all of the conditions for the trade have been met. In this way you should never take a trade without thinking about all of the key variables. Completing these record sheets will also help prevent you from taking trades based on impulsiveness rather than a correct signal, and will give you a written record of the trade. Trade record sheets become an invaluable resource when you analyze your trades in order to identify your trading strengths and weaknesses.

Audio Program

You will also receive an audio program, plus almost 40 full-page tutorial charts that accompany the audio CDs. This is your opportunity to be taken on a guided tour of Stockmarket Master, during which Neil will explain the important points in simple terms. He also guides you through the colour charts so that you can become familiar with the charts used, and what is looked for on these charts. These charts are in addition to the 30+ charts that accompany the course.

The audio program is an ideal medium for technical analysis education, as you can study the charts closely, while listening to the CDs. Also, repetition is the key to familiarity. The audio program can be played and replayed in a range of convenient settings, including your car.

Return to the list of guidelines.

How Can Stockmarket Master Assist You ?

Stockmarket Master will give you a market education; while at the same time teach you a highly effective trading system. You will learn about the market cycle; the most profitable and safest time to buy stocks; how to select the strongest stocks; the triggers used to enter and exit trades; how to manage your trading capital, and how to manage yourself.

If you study it conscientiously, you will soon grasp the principles and have a real edge over the millions of traders and investors who trade on tips, rumours and the recommendations of others.

Return to the list of guidelines.

What Do You Receive When You Purchase Stockmarket Master?

1. Course Materials

You will receive your folder containing the course and its extensive array of charts and diagrams.

Each chapter contains valuable trading gems. Chapter One, in addition to giving you an overview of the Course, gives you a simple trading system which may save you a great deal of money if you have been in the habit of 'holding and hoping', when stocks fall.

( Stockmarket Master, page 20.)

Chapter Two is a chapter that could change your life. It outlines how you should go about setting goals for all of the important aspects of your life, health, income, family and friends.

( Stockmarket Master, page 29.)

(Richard Slayton, Clearwater Consulting, United States of America)

Chapter Two gives you detailed instructions on how to prepare and present your trading plan. This document will become the key to your success as a trader.

Is the course only designed for experienced traders who wish to obtain a proven trading system? The answer is NO!

Chapter Three of Stockmarket Master gives you a concise stock market education. You will learn a wide range of technical analysis, trading and stock investment concepts. In particular, you will learn the various methods of charting used around the world:

( Stockmarket Master, page 57.)

The ten chapters of Stockmarket Master are:

Stockmarket Master is designed for anyone serious about learning to trade the stockmarket. If you have never bought a stock, or if you are an experienced trader who wants to make the most out of his or her capital, Stockmarket Master is for you.

This is not just my opinion. It is also the opinion of Dawn Bolton-Smith, one of the most respected analysts and traders in the world:

(Dawn Bolton-Smith, Sydney, Australia writing about Stockmarket Master. Dawn is a technical analyst with more than 30 years experience, and writes a technical analysis column for both the Iris Report, and Your Trading Edge magazine.)

To order your course, simply click on the link below, complete the Client Licence Agreement, and post it to the address below.

PLEASE NOTE:

The Stockmarket Master Course is now available for purchase

Bonus Extras:

For a limited time and only while stocks last, Market Masters Education will be offering bonus extras to help compliment and expand on the content found with in the Stockmarket Master Course.

These extras include:

Conference Presentation – Neil Costa June 2000

Presented by Neil Costa this high quality audio CD presentation is packed full of hints and techniques that expand on many of the principlesfound within the Stockmarket Master course. It also includes an advanced lesson on Ganns Master Time Factor and how he constructed his annual forecasts.

The audio CD lessons are accompanied with a bound workbook with high quality coloured charts for you to work through as you progress through the lessons.

How W.D. Gann Constructed His Annual Forecasts Booklet – By Neil Costa

In this booklet Neil Costa outlines some of the key components to Gann’s Master Time Factor and how he constructed his annual forecasts.This booklet ties in very well with Neil’s conference presentation on audio CD on how Gann constructed his Master Time Factor.

Course Audio Component

The original Stockmarket Master course audio component has been converted to high quality CDs for greater flexibility and ease of use. For a limited time and again only while stocks last, the CD audio component can be swapped for the original tape set that previously accompanied the course, but only upon request and at the time of placing your order.

Click Here to order your Stockmarket Master Course

Email: info@marketmasters.com.au

Phone: 0409 051 047 (International +61 409 051 047)

Post:
Market Masters Education

P.O. Box 786
Paddington Qld 4064
AUSTRALIA