Doing This Will Cost us a Fortune

Tuesday, 17th November, 2015
Albert Park, Melbourne
By Kris Sayce

  • Market news
  • LIVE tonight

In today’s Port Phillip Insider, I’ll explain why I’m costing the owners of our business a fortune in revenue each year.

I’ll explain why, even though we are already Australia’s biggest independent investment publisher, my actions are preventing us from growing even bigger.

And, I’ll explain why both the owners of the business and our customers are glad that I’m running the business this way.

Now, if you think today’s Port Phillip Insider contains a lot of ‘navel gazing’ about the inner workings of the financial publishing industry, you’re wrong.

Today’s Port Phillip Insider explains the reasoning for what we do, and why it can help you build an investment fortune…

Market news

The Dow Jones Industrial Average closed this morning up 1.4%.

The S&P 500 index closed up 1.5%.

As for the two ‘fear assets’ of gold and oil, both are pretty much where they were at the end of last week.

It seems that even the threat of war isn’t enough to get anyone to buy gold or oil today.

That’s telling you something. Perhaps the central banks have finally succeeded in demonising gold. They’ve certainly been trying for long enough.

I guess now that their work is almost done, they can move on to demonise and destroy something else. Ah, maybe that was their plan all along.

First destroy faith in gold, and then destroy the value of paper money. It seems so obvious.

LIVE tonight

Right now we’re gearing up for our first ever LIVE training event.

Hosted by one of our behind-the-scenes researchers, James Woodburn, who will talk to Matt Hibbard and I about the power of trading exchange traded options for income.

We’ve never done anything like this before. There’s no telling how things will pan out.

But I believe that those who tune in to tonight’s event will learn one of the most powerful secrets to investing success.

In doing so, by revealing this idea, I can tell you that it means Port Phillip Publishing is forgoing a fortune in revenue.

I’ll explain why in a moment.

First, it’s important to understand that most investors get investing completely wrong.

This shouldn’t be new to you. You’ve probably heard it all before. When stocks are cheap, investors don’t want to buy them because they’re worried they could get cheaper, and that they’ll lose money.

Most investors like to follow the herd…but reluctantly. Only when stocks have already risen will most investors have any interest in buying them.

That’s not to say they buy at the top and sell at the bottom. But it’s fair to say that many investors only buy stocks when everything looks perfect. And that means most of the good news is already priced into the stocks.

It’s a similar story in a falling market. When stocks are falling, most investors refuse to believe that it can get any worse. It has been drummed into them that stock prices always go up in the long run.

In fact, they claim that they’re not interested in short term price movements. They say that, until stock prices crash. Then their attitude changes. They suddenly believe that stock prices will never go up, so they sell.

This isn’t just anecdotal evidence either. I’ve seen this time and again over the past 20 years. Folks who say they are long term investors are nothing of the sort.

That’s why, in Port Phillip Insider, our free eletters, and our paid services, we try to help new and experienced investors to learn how to invest.

Now, that doesn’t mean there’s a one size fits all approach. Investing is individualistic. But there are some principles that can apply to all investors.

For instance, three years ago I started writing about the idea of ‘safe money’ and ‘punting money’. It’s nothing original. It’s just another take on the age old idea of asset allocation.

By splitting your investments into ‘safe’ and ‘punting’ or riskier investments, you can get a good idea about how much of your wealth you’re truly risking.

As an example, you may choose to put cash, dividend stocks, and gold in your ‘safe’ investments. Your ‘punting’ or riskier investments could include growth stocks, small-caps, microcaps, and leveraged investments.

But here’s the thing. Here’s where I’m potentially costing the business a fortune in lost revenue.

You see, when we launch a new trading or investment service, folks will email or call us and tell us that we’re just money grabbers…launching as many trading services as possible in order to rake in more cash.

I know that’s not true. But if it’s not good enough for me to say it, I can easily explain why when we compare the launch of two of our newest services.

In June this year we launched Microcap Trader. It’s the highest priced service we have, and because it recommends some of the market’s tiniest stocks, we have to limit membership numbers.

What you may not realise is that we launched Microcap Trader at a price point of $2,999 per year on Saturday 30 May. We had exhausted our 500 member limit by Wednesday of that week.

It was our biggest trading service launch to date.

Now compare that to Options Trader, a service that costs $1,999 per year. We launched Options Trader on Saturday 26 September. We don’t have a maximum number of subscribers. So far, not including Platinum Alliance members, we have just over 400 subscribers.

Last month we launched the Currency Wars Trader service. An alerts service that aims to help investors profit from and protect their wealth from the global currency wars. Right now, we have just over 200 people on that service.

All of these services are unique in Australia, as far as I’m aware.

They introduce active investors to two entirely different concepts. Options Trader involves ‘scalping’ relatively small cash payments from the markets.

Currency Wars Trader is looking for big gains by analysing key macroeconomic events.

However, while both of those services has done pretty well since launching, in terms of the number of subscribers we’ve attracted, neither comes close to the Microcap Trader launch.

So I can tell you right now, if providing these investment services really was a money grab, there is no way I would have launched Currency Wars Trader. And there is absolutely no way I would have launched Options Trader either.

If you’d seen the amount of work we have to do ‘behind the scenes’ to launch these services, you’d realise that.

If this was a money grab, you know what I would do? That’s right, I’d launch about a dozen different versions of a microcap trading service.

For years our biggest entry level investment services were Australian Small-Cap Investigator and Diggers & Drillers (now Resource Speculator). Both of those primarily involve recommending small-cap stocks.

We know Aussies love small-caps. That’s why we also launched the Microcap Trader service. Supply meets demand.

But, no investor in their right mind should invest all their money in small-cap and microcap stocks.

But as qualified financial advisors, it’s important that we introduce you to a wide range of interesting and sometimes unique investment ideas — even if we know getting the message across will be like pushing a rock up a hill.

In fact, I’m so passionate about our Options Trader service that I convinced the team here in Albert Park to stick around until past 9pm tonight for our first ever LIVE training event.

Matt Hibbard, who runs Options Trader, will be here in our studio to discuss options trading, and why this particular investment approach is so often misunderstood.

Matt will walk listeners through a couple of the live trades he has already made in Options Trader. Plus, I’ll show those who attend the exact options trade I placed several weeks ago.

I’ll explain why I did it, why I’m so pleased with the results, and why I’ll never buy another blue-chip stock in the traditional way again.

I know that only a fraction of our subscribers will ever join Options Trader. That saddens me, because I know that if folks understood how they work and the benefits of following Matt’s strategy, they’d soon realise that this service should be the single most important service for them to join.

That’s why we’ll be here late into the evening, explaining the power of options to those who tune in to the LIVE online event. It’s still not too late to join in. But time is running out.

If you want to secure your place, and you’re available to tune in at 7pm AEDT tonight, go here now. But be quick. We can only accept a maximum of 4,000 listeners. So join up here and then tune in early, before all the spaces are taken.

I hope to see you online tonight.

Cheers,
Kris

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End of day market data

If you have any ideas about what you would like us to include in our end of day market data drop us a line at letters@portphillipinsider.com.au, and type ‘Market data’ in the subject line.

52-week highs: 28 stocks, including ICSGlobal Ltd [ASX:ICS], HUB24 Ltd [ASX:HUB], Ridley Corp Ltd [ASX:RIC], and Treasury Wine Estates Ltd [ASX:TWE].

52-week lows: 20 stocks, including Bradken Ltd [ASX:BKN], Mesoblast Ltd [ASX:MSB], and Woolworths Ltd [ASX:WOW].