Revealed: A way for Aussie investors
to profit from Europe's debt crisis...
to profit from Europe's debt crisis...
How to Make Small Cap-Sized
Gains from Large Cap Stocks
Gains from Large Cap Stocks
Below, Murray Dawes shows you a unique way to profit from volatility coursing through the markets...
Discover how to capture 'in-and-out' gains – not from small caps, but from the biggest stocks on the ASX...
...With low risk, and no matter
what the market does this year!
Discover how to capture 'in-and-out' gains – not from small caps, but from the biggest stocks on the ASX...
...With low risk, and no matter
what the market does this year!
Dear Reader,
It looks like Europe's debt meltdown is going to be the next 'big one'.
Albert Edwards from Societe Generale said recently: "My own view on this is that obviously we should never have got into this wholly avoidable mess in the first place. But having got here, there really is no way out that does not trigger a major market-moving upheaval."
What's going to happen next?
How is this going to play out for Australian stocks?
And how is our resident technical analyst, Murray Dawes, playing this situation for quick, in-and-out, 20%+ profits?
I sat down face to face with Murray, away from the trading screens and the telephones, to ask him point blank what he sees coming in the markets. What you'll read below is not pretty... but it could be profitable for you, if you make the right moves within the next fortnight...
Dan Denning: Well, Murray, first the elephant in the room. The market is already down 6% since December. Greece appears to be on the verge of bankruptcy. If it defaults on its sovereign debt, it will threaten the euro and throw currency markets into turmoil. And if I'm not mistaken, wouldn't it be the biggest sovereign default in history?
Murray Dawes: Yes, and if it's bailed out it would be the biggest sovereign bail out in history. But that would trigger a huge crisis in the Eurozone and for the Euro.
DD: Right. And it looks like Ireland, Portugal and Italy could default on their sovereign debts too. I'm almost afraid to ask, but...what are your screens telling you about where the markets are headed?
MD: The markets are at a vital crossroads. One of two things will happen. These levels hold, and we look back on this period as a great buying opportunity. Or the macro news in relation to Greece and China, with its tightening monetary policy, will cause a failure of the current range.
DD: A 'run-for-the-hills' panic like October 2008?
MD: Possibly. Last year's rally was big. The situation in Greece certainly has investors spooked. Right now there are slightly more buyers than sellers. That could change very quickly.
DD: Even though this is a Greek debt problem, you're talking about a direct impact on Australian shares right?
MD: Yes.
DD: So, if you're an investor wanting to stay in the market, how should you play the current situation?
MD: Speaking personally, in the short term I'm not eager to go long on anything. I currently have one open long position that is up over 20%. I'm not looking at adding more for now. But soon – when we know more about what's happening – I'm going to switch from 'sit-and-wait' into 'trading mode'. We're entering a very lucrative phase if you read things correctly.
DD: How so?
MD: Take a look back at what happened at the end of 2008. On November 13, 2008, the Dow Jones – the bellwether of the global markets – logged its fourth-biggest daily gain in the stock market since World War II. It closed up 6.7%. That morning stocks fell 4%. In the afternoon they soared 12.5%.
DD: Those are massive moves.
MD: That's what happens when you have fear and uncertainty ripping through the markets. The next day, November 14, 2008, the market fell 5% on opening...recovered all its losses by midday...and then fell 5% again. Dan, those are the kind of conditions traders pray for and buy-and-holders dread. I think we're entering a market like this now.
DD: Why?
MD: If you believe, as I do, that the world has entered a new era of government manipulation, instability, debt defaults and economic turmoil, then going forward you should expect to see more days like November 13 and much higher levels of stock-market volatility.
DD: So how can our readers play this?
MD: Well, you can't buy volatility. It's not an asset. Some brokers offer options on the VIX Index, which measures volatility, but that's a bit of a mug's game. I'm preparing in a different way.
DD: Which is?
A Once-in-a-Decade Opportunity to Draw
Off HUGE Gains from ASX 200 Stocks
Off HUGE Gains from ASX 200 Stocks
MD: OK, here's the deal. I reckon, whether we get a wholesale sell-off or not, we're going to see HUGE volatility. This gives you a very limited chance to make small cap-sized gains from large cap stocks.
DD: Why large caps?
MD: It's a rare chance to profit from big market swings, without the liquidity problems you get trading small caps. You simply don't get many windows as an investor to make double digit gains from large caps in weeks or months. Usually, it shouldn't happen. When it does, you should take advantage of it.
MD: So focus on the ASX 200?
DD: Yes. There's going to be a lot of big movement there in the weeks to come. One day back in 2008, for instance, Australian blue chip stocks plummeted 7% in a day. This was their biggest fall on record. CommSec's trading website crashed, there was so much trading action.
DD: People heading for the exits. And then the bounce-back...
MD: Then the bounce-back. It's like a giant Tsunami wave sweeping back and forth. Many speculative traders drown in the confusion. It's a nightmare for folks with cash tied up in a super fund. But traders profit from the madness. And a lot of guys I know are setting up for this situation as we speak.
DD: OK. Say you're a private investor wanting to trade the movements of ASX 200 stocks in the months ahead. How do you go about this?
TOP PRIORITY: Get Your Stake Out Quickly!
MD: Keep in mind this is just my own personal strategy. I'm no genius. But I do have six years in the trading pits of the Sydney Futures Exchange to draw on. You learn lessons fast in that environment. And you learn how to adapt your strategy to suit market conditions.
DD: How do good traders make money from large caps at times like these?
MD: I noticed something when the markets were particularly volatile. The guys who lost money were the guys who lost their nerve. And they lost their nerve because they had too much at stake.
DD: They bet too much on a trade?
MD: Well, it's not that they had too much invested. It was more that they got greedy and refused to take some chips off the table when they could. I noticed it was the guys who banked a bit of money early...and got into a risk-free position with the rest of the stake...that seemed to consistently cash in.
DD: So use volatility to create risk-free positions?
MD: Exactly. Think about it. If you can quickly get into a position where you cannot possibly lose money on a stock...where your initial stake is no longer at risk...you're in the right frame of mine to execute the rest of the trade. You're not plagued with worry. You can wake up and find a whole bunch of bad company data has sent Wall Street into a spiral overnight and not be too bothered. Other people are freaking out. You're sweet because, at worst, you break even. You make the best trading decisions in this mental state. This is the one lesson that means I end up on the right side of the ledger more than I used to.
DD: So that's the core of your strategy: get money off the table quickly?
MD: In this market, yeah. Buy and hold is just not the way to go right now. After the '29 crash the markets didn't get back to their old highs for 25 years. But if you TRADE big stocks, you can make money. Get into a risk-free position in a stock as quickly as possible. From there, you can look at the trade as a 'free option'...because you get to participate in whatever happens from here on for FREE.
DD: That's the way to play this market?
MD: It's one way. But only if you want to be in the game at all right now. Look, the market's sweet spot has soured. If you don't have capital you can afford to lose, stay out. But if you recognise the opportunities that volatility brings, 'free option' trading is a way to get involved without losing heaps of money.
DD: So, what specific advice do you have for readers?
You Have Three Choices
MD: The way I see it, you've got three choices as an investor. You can throw your lot in with the fund managers. They still insist everything is hunky dory. A recent survey of investment managers showed they expect volatility in the 15% to 22% range for the rest of the year. That's substantially LOWER than the last two years.
DD: You don't agree.
MD: No, that's idiotic given current circumstances. But the fundies have to say that, don't they? They only get paid if you throw your lot in with them. Carl Hess is the global head of investment at Towers Watson. He says of the survey results: "The overall picture we get from this influential group is one of recovery." I read that recently! It's rubbish.
DD: So if you don't agree things are looking up...
MD: As I said, you could sell your non-essential holdings and wait and see.
DD: Or you could try and exploit volatility to siphon bigger-than-normal gains from large cap stocks. That's the aim of your trading service, Slipstream Trader. Before you show me how it works – what's your track record like right now?
MD: Very healthy considering the state of the markets. The methodology of Slipstream Trader – which I'll explain in a second – appears to be working. We currently have four long positions and none are down. The highest profit on the books right now is 24%. Because there's been a lot of selling I've recommended a few short trades. These aren't suited to all investors – but they can make you good money in a market that is selling off. One is sitting on 18%, the other 9%.
DD: Not bad.
MD: And you have to remember these are large cap stocks. You don't get quick gains like that trading relatively safe large caps very often.
DD: So, how does Slipstream Trader work?
Small Cap-Sized Gains from Large Cap Stocks
MD: Put simply, I track possible price moves in large cap stocks, and show my readers how to profit from them. I walk them through the entire trade – from opening the position, creating a 'free option' by taking money off the table, then selling out for a profit. All this is done via email alerts. All you need to do is check your email on a fairly regular basis, say once every few hours.
DD: How long can members expect to be in a trade?
MD: No more than three months usually, but sometimes in a matter of weeks. That's unique. You don't get environments where you can bank a double-digit return from an ASX 200 stock in a fortnight. That's why this service is so timely. Frankly, I'm surprised no one else has copied me yet.
DD: What other benefits are there to trading large caps right now?
MD: As I've said, the top 200 stocks are usually quite liquid and there is much less chance that we will have an effect on the share price by entering the stock in large numbers. Small cap companies can have some incredibly vicious moves that are mind boggling. This can increase stress levels and also increase the amount of times you are whipped out of your positions.
DD: Especially in a volatile market.
MD: Yeah. With small caps there is a greater degree of gap risk because a bad announcement from a small cap can see the price gap 30-40% or more. A good announcement can send it the other way. But it takes a lot of nerve to be in the small cap game, especially at times like this. That's a key benefit to joining Slipstream Trader. Large liquidity lowers the 'slippage risk'. That means if you want to enter a stock I tip there is a very high probability you can do so at the suggested price.
DD: And I'm assuming your risk is lower.
MD: That's another core benefit to Slipstream Trader. Larger caps are less likely to gap so far. I suggest to my readers they only risk 5-8% of your initial capital on Slipstream trades whereas the stop loss can be 20-30% on the small caps. All in all the structure of your returns is likely to be smoother by trading large caps than small caps.
DD: I suppose it's easier for you to pick winning trades.
MD: You suppose wrong! I would say that trading large caps is actually harder than small caps because you are competing with the big boys. They have the money and the experience to play with your mind and shake you out of positions. Therefore you really need a concrete methodology for trading the large caps and you have to stick to it rigidly.
DD: So how do you select trading opportunities?
How to Create a 'Free Option' Trade
MD: I'm a technical analyst at heart. I still take fundamental analysis into account before entering a trade – but this is less important with large caps. The large cap stocks have analysts researching them to within an inch of their life. There is a higher probability that most of the information about a stock is reflected in its price. Before I enter a trade, I do a quick check to make sure there's no news that has been overlooked. Then, once in, I switch to pure technical analysis for the rest of the trade.
DD: The price action and only the price action.
MD: Right. To me trading with technicals is really a risk management system. Whether you are an investor or a short term trader you can benefit from using the technicals to help you avoid trading in high risk situations.
DD: How?
MD: I use a 3 phase approach to trading large caps. See, the highest risk is from the moment you enter the stock to the moment you take partial profits and adjust your stops so that you aren't risking any of your initial capital. After we enter a trade, I focus on getting my subscribers to the phase 1 profit target as quickly as possible. This is where I recommend you take money off the table and create the 'free option'.
DD: Now it's a risk-free trade.
MD: Well, your initial stake is no longer at risk. From my perspective, I now don't have to worry about losing you money. The decisions I make from here on aren't emotionally charged.
DD: And the next two phases?
MD: The next phases focus on building a good, quick profit. Of course I understand that you may have your own idea about trading time frames. So you're welcome to trade my tips as you see fit. For example you could be happy to cut the whole trade once a phase 2 profit level has been reached.
DD: By this time your stake is in the bank, as well as a profit?
MD: Yes. Here I usually suggest you take another third of your position off, and leave the final third for phase 3. I call this final stage the 'little firecracker'... where you can end up with quite a substantial gain from a large cap stock. But again, it's your call. You can take your win and exit at phase 2 if you like.
DD: On what basis do you make these decisions?
False Break-Outs
MD: I use charts to identify 'false breakouts'. This is where the price looks to be breaking away, but ends up reverting back to what I call the Point of Control. This is a point in a price action that a price gravitates around.
DD: How does that work?
MD: Classical technical analysis has taught people to look at the market in a certain way. My contention is that this perspective on the market actually causes people to trade in exactly the wrong way. I believe trading breakouts is fraught with danger and my approach doesn't allow this to occur - hence lowering risk.
DD: You mentioned you recommend short trades?
MD: Not often, but in this market you'd be silly to ignore shorting opportunities. This can help to lower risk by creating a more market neutral position for the overall portfolio during times of market stress. You may only be able to go long stocks which is ok too because the individual trades should stack up on their own merits, but the ability to short can help to manage risk.
Why Share this Information?
DD: You joined us in October after a lucrative career in the trading pits. Why?
MD: Truthfully, having spent years in the pressure cooker environment of trading large accounts I am really enjoying stepping back and gaining a different perspective on trading. Trading is one of the hardest pursuits you can possibly undertake. I would be foolish and vain to say that I am in any way a master at this game. I am on a journey towards being the best trader I can be...and, hopefully, I'm helping traders with less experience under their belt along the way. The track record shows I'm having a degree of success here. I think a lot of this comes down to my new sense of objectivity.
DD: And your readers are enjoying the service?
MD: I have received a lot of feedback from people since I joined and I have been enjoying interacting with my readers after spending many years holed up in my trading room watching moving numbers. This is a very unique thing we have going here! I can't think of a single objective, independent large cap trading service like it in the country.
DD: Thanks Murray.
MD: No worries.
Give Slipstream Trader
a go for 60 days – risk-free
a go for 60 days – risk-free
If you'd like to trade small cap-sized gains from large cap stocks, you can...
Because of the medium-term nature of the trades, Murray wants to give you plenty of time to evaluate the service and to make sure it's right for you before committing.
That's why he invites you to test-run Slipstream Trader for the next two months.
This should give you enough breathing space to watch the trades evolve.
This is a 100% no-obligation trial run.
If, for whatever reason, you want to cancel in this time you can. You'll get your full subscription fee back.
Membership of Slipstream Trader costs $1,495.
You simply won't find a service available of this calibre offered at anywhere near this price.
That is a pretty fair offer.
If you take it up, here's what you'll receive:
Slipstream Trading Primer: This members-only report outlines our manifesto for making small cap-sized gains from large cap stocks in the coming months. You'll get a full run-down on my 'false break-out' technique... as well as Murray's 3 phase process for creating 100% risk-free trades. And he'll show you what each email recommendation will contain, and how to act on them with minimal fuss. Read it right away, before you review anything else.
Slipstream Email Alerts: These will contain Murray's simply trading instructions, usually with a chart to show how a decision is reached. Murray can't say when these trades will come, or how many there will be. Technical analysis doesn't work that way. From our trading so far, however, he predicts you'll be given at least one actionable trade a fortnight. Again, you'll be told what to do, why, what you stand to make and how to control your risk.
A video introduction to the False Breakout and other key trading ideas: Broken into five segments, this video series will show you exactly how Murray reads the charts, and how the key concepts in his trading methodology are used to produce your trading ideas. You'll get a link to this video library as soon as you sign up.
A copy of Murray's guide to short-selling: "How to make money from shares that go down." Short selling is all about profiting from falling stock prices. In this 12-page guide, Murray explains how to sell the shares of a company you don't own... how to get a broker to "borrow" the stock on your behalf... and how to set up the trade to limit your risk. When markets are this volatile, short selling is something every trader needs in their arsenal.
The decision is yours.
Remember: this doesn't involve risky spread betting, options or derivatives. Murray's alerts will allow you to nip in and out of your favourite stocks, and bank – hopefully – regular gains... no matter what surprises the market throws at us.
If you'd like to watch your large cap returns explode over the next 12 months, now is the time to light the fuse.
To receive our Slipstream Trader email alerts on a risk-free, 60-day trial basis, click here.
Kind regards,
Dan Denning
Publisher
Slipstream Trader
Please contact customer service if you require further assistance: 1300 667 481 or email premiummembers@portphillippublishing.com.au
Please note that our customer service team is available to assist Monday to Friday 9am to 5pm AEST.
PO Box 899
Braeside Vic 3195
Fax: 03 9558 2219
Any communications from Port Phillip Publishing Pty Ltd employees should not be considered to be personal investment advice. Although our employees may answer your general customer service questions, they are not permitted to address your particular investment situation.
The information in this email is confidential and may be legally privileged. It is intended solely for the addressee. Access to this email by anyone else is unauthorised. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. If you are not the intended recipient please return the message to the sender and delete it from your records.
Calculating Your Future Returns
It's important to remember that investing in shares can lose you some or all of your investment money. Never invest more than you can afford to lose. Please seek independent financial advice regarding your particular situation.
While useful for detecting patterns, the past is not a guide to future performance. The value of any investment, and the income derived from it, can go down as well as up. All Slipstream Trader examples in this promotion are correct at 19/02/10.
Port Phillip Publishing Pty Ltd holds an Australian Financial Services License: 323988
© 2010 Port Phillip Publishing Pty Ltd.
ACN: 117 765 009 ABN: 33 117 765 009
Please note that our customer service team is available to assist Monday to Friday 9am to 5pm AEST.
PO Box 899
Braeside Vic 3195
Fax: 03 9558 2219
Any communications from Port Phillip Publishing Pty Ltd employees should not be considered to be personal investment advice. Although our employees may answer your general customer service questions, they are not permitted to address your particular investment situation.
The information in this email is confidential and may be legally privileged. It is intended solely for the addressee. Access to this email by anyone else is unauthorised. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. If you are not the intended recipient please return the message to the sender and delete it from your records.
Calculating Your Future Returns
It's important to remember that investing in shares can lose you some or all of your investment money. Never invest more than you can afford to lose. Please seek independent financial advice regarding your particular situation.
While useful for detecting patterns, the past is not a guide to future performance. The value of any investment, and the income derived from it, can go down as well as up. All Slipstream Trader examples in this promotion are correct at 19/02/10.
Port Phillip Publishing Pty Ltd holds an Australian Financial Services License: 323988
© 2010 Port Phillip Publishing Pty Ltd.
ACN: 117 765 009 ABN: 33 117 765 009