We’re now tackling the mainstream head-on

Friday, 6 October 2017
Melbourne, Australia
By Bernd Struben

  • Not-so-mass market
  • Four steps to reverse a decade of losses…

Before we get to the business of financial markets, an aside…

At Port Phillip Publishing we’ve always steered clear of politics.

We say that both sides are just as bad as the other.

But over the past couple of years, we’ve noticed a not-so-subtle change in the political atmosphere in Australia.

But more than that, we’ve noticed another not-so-subtle change in the media atmosphere. Gone are the days when reporters simply reported impartially on the news. Or when columnists and commentators took an objective view when interviewing politicians.

Today, it’s different.

Reporters and journalists now push their own agenda: special interests, lobby groups, and political correctness.

Woe betide you if you say anything that goes against the mainstream ‘chattering classes’, and the ‘champagne socialists’.

Say you support Brexit because you believe a sovereign country should control its borders, the mainstream brands you a racist.

Say you think Donald Trump has a point on the off-shoring of jobs to China, the mainstream brands you a backward thinking isolationist.

Say you think the government shouldn’t get involved in the definition of marriage, and the mainstream brands you a bigot.

Say you’re sceptical about climate change, and the mainstream brands you a ‘denier’.

What happened to a neutral and independent press?

We don’t have a problem with biased views. But we do when it’s disguised as objective reporting.

For that reason, this week we have launched a brand new website and e-letter, The Australian Tribune.

Each day, The Australian Tribune team will send you their take on what they believe is the most important news happening in Australia and the world.

But rather than the same old mainstream PC spin, the Australian Tribune team will give you the new straight…as it is…without the bleeding heart and opinionated mainstream drivel that infects most news you’ll find in Australia.

I (Kris Sayce) am proud of this new service. And I’m proud to launch it in what I believe is a first in Australia — a straight-down-the-line news source that reports without fear or favour of vested lobbying and advertising interests.

If The Australian Tribune reports on a news event in a way that some folks don’t like…well…tough. They won’t be able to put pressure on advertisers, because The Australian Tribune doesn’t carry advertising from anyone who gives a stuff about what may offend over-sensitive and precious ‘snowflakes’ or Social Justice Warriors.

They already have their venue for their PC views — every Australian metropolitan mainstream newspaper.

The Australian Tribune isn’t for them. The Australian Tribune is for everyone else. If I know you as well as I think I know you, The Australian Tribune may be for you. Anyway, give it a try. I’m proud of what we’ve been able to achieve in such a short period of time.

To join the FREE Australian Tribune daily e-letter service, just click on this link, and we’ll subscribe you automatically.

You can always unsubscribe later if you wish — but I think once you’re in, you won’t want to leave! In fact, I’m certain of that.

Thanks in advance of your support for our new venture. To subscribe to The Australian Tribune automatically and for FREE, just click this link.

And now, on with the show…

Markets

Overnight, the Dow Jones Industrial Average gained 113.75 points, or 0.5%.

The S&P500 added 14.33 points, or 0.56%.

In Europe, the Euro Stoxx 50 index closed up 18.63 points, or 0.52%. Meanwhile, the FTSE 100 added 0.54%, and Germany’s DAX index fell 0.02%.

In Asia, Japan’s Nikkei 225 index is up 35.23 points, or 0.17%. China’s CSI 300 is up 0.37%.

In Australia, the S&P/ASX 200 is up 48.53 points, or 0.86%.

On the commodities markets, West Texas Intermediate crude oil is US$50.75 per barrel. Brent crude is US$56.98 per barrel.

Gold is trading for US$1,267.25 (AU$1,635.35) per troy ounce. Silver is US$16.59 (AU$21.41) per troy ounce.

The Aussie dollar is 77.5 US cents.

Bitcoin is US$4,321.62.

Not-so-mass market

It’s a US$59.3 billion car-making giant. It’s Tesla Inc [NASDAQ:TSLA]. The darling of the electric car industry, and supposedly, the saviour of the planet.

It’s also a company that delivered just 220 of its hotly awaited ‘mass market’ car, the Model 3…in two months.

As TheStreet.com notes:

On one hand, Tesla only delivered 220 Model 3 sedans, less than a consensus of 1,260. In addition, two months after Musk forecast over 1,500 Model 3 units would be produced in September, Tesla disclosed only 260 Model 3 units were made.

How did the share price react? Naturally, it went up!

Remember, that when dealing with Tesla, you’re dealing with a parallel universe. You’re not dealing with reality.

At this morning’s close, the share price was US$355.33 per share. Analysts at broking and research firm, Nomura, figure the share price should hit US$500.

According to the Bloomberg report:

The analyst cites improvements to gross margins and years of incredible revenue gains set to come. Tesla also has an “insurmountable lead in vehicle range per dollar,” the report says.

Although being the bearish personality we are, we prefer the following analysis, also from Bloomberg:

Standpoint Research founder Ronnie Moas downgrades shares of Tesla to sell from hold with a price target of $280, implying downside of more than 21% from its current price.

Shorting Tesla has been expensive for those who have tried. But it hasn’t dampened the short sellers’ persistence.

As we write, 22.7% of Tesla’s stock has been short sold.

If Nomura is right, and the stock soars higher, the short sellers are set to feel more pain.

Now over to Jason McIntosh, the founder of our Quant Trader service…

Cheers,
Kris


Four Steps to Reverse a Decade of Losses…
By Jason McIntosh, Editor, Quant Trader

Business isn’t just about money…

Some of my most rewarding experiences had no financial reward.

A few years ago, I took on a volunteer role at a local high school. It involved mentoring a group of Year Nine students through a week-long business simulation.

The program’s aim was to introduce the students to commerce. They had to manage a fictional company and compete online against other student groups.

Seeing the students discover business was amazing. They went from a basic awareness to a strong grasp in just a week. It’s one of the best things I’ve done. I’ve gone back several times since.

Helping people learn is special. I enjoy it so much that I did a teaching degree in 2013. This gave me a fascinating insight into the learning process, and a huge respect for teachers.

I’ll never formally joined the teaching ranks (it’s one of the toughest jobs to do well). But the experience was invaluable. Hopefully my training can help you learn about markets.

In a moment, I’m going to tell you four principles of successful trading. Learning how to use these could transform your results.

But first, let me tell you my favourite teaching strategy…

A story to remember

We all have a personal learning preference. Some of us like to learn through seeing, others by listening, while some prefer a practical hands-on approach.

But no matter what suits you, there’s one format everyone enjoys — storytelling.

You’ll know that I often tell stories in my articles. I do this to help you relate to the information. And the better your connection, the more likely it is to stay with you.

Let me give you an example…

A member of my Quant Trader service, Warwick, emailed me a few months back. He’s been trading for 30 years without success. Warwick tells me his losses this decade total around $2 million.

Now, that’s a lot of negative feedback — many people would have quit years ago.

But not Warwick…

You see, Warwick’s been with Quant Trader since day one. At the time of his email, he had a $600,000 portfolio with 161 open trades (from the Quant Trader portfolio).

Unlike his previous trading, Warwick now buys with the trend and has many relatively small positions. He’s also cuts his losses early, and gives winners room to move.

And, to top it off, he’s made a healthy profit. Warwick reports an overall gain of $69,000.

It’s always pleasing to see someone make money. But what’s even better is hearing they’re trading effectively. This tells me I’ve been successful in transferring my experience.

A similar email hit my inbox while I was on holiday recently. I read it just before heading out with the family for dinner. The message made my night.

Have a read below…

I have been a member of Quant Trader since the beginning. I have learnt heaps since beginning this service and now apply stops on all my stocks.

I have been using CMC Markets for my broking. Brokerage is only $11 up to $10,000 trades. As I started investing $500 lots into Quant stocks this has been handy. They even have stop loss capabilities to sell at market price which doesn’t cost any extra like some other brokers. I now trade in $1.000 lots.

All in all, the service that you provide is very informative and I am beginning to make some profits which is fantastic as I have been trading shares for 15 years where I lost money over and over until Quant came along. My family and I are now looking forward to a wealthier future.

Member, Janette

This would make any teacher smile. Janette’s making the Quant Trader approach her own. That’s a hugely satisfying outcome and I’m very grateful for her feedback.

So, what can you learn from this service?

The four principles

Warwick cites four reasons for his success:

  1. Trading with the trend (not against it)
  2. Having many relatively small trades (instead of a few big bets)
  3. Cutting losses early (rather than riding them to the bottom); and
  4. Giving his winners room to run.

You may be familiar with these principles. They often feature in my articles. I believe these are the most important factors to becoming a successful trader.

I sometimes think trading is mostly common sense. Strategies like spreading risk, running profits and cutting losses seem obvious. They’ve become second nature to me.

But it wasn’t always like this…

My first attempt at trading was at age 15. The strategy (if you could call it that) was to buy speculative mining stocks. There was little analysis — it was essentially gambling.

Naturally, it was a disaster. I don’t think I had a single winning trade. A few stocks would surge higher. But I wouldn’t sell. I’d eventually ride them all the way back down.

My approach was the opposite of good trading. I’d bet 100% of capital on each trade. I gave no thought to risk, and I never had an exit plan — many traders make the same mistakes.

I began learning to trade properly in 1992. My job at Bankers Trust put me alongside some of the best traders in the land. I was lucky. Few people get such an opportunity.

Making a career from the markets took a long time. The key was learning the four principles of trading: buy into strength, spread risk, cut losses, and give profits room to run.

Hopefully my writing provides you with a shortcut. I want you to avoid the years of struggle people like Janette and Warwick experience. That’s what these articles are all about.

Until next week,
Jason

Editor’s note: Quant Trader isn’t just about buy signals — it’s also about learning. Jason, through his decades of experience, aims to give you the confidence and discipline to trade like a professional.

Each weekly update helps to develop your understanding. You can then make that knowledge your own by applying it to his system’s buy signals. That’s the best way we know to truly learn.

Right now, you can get instant access to Quant Trader with a 30-day money-back guarantee.

Try it. See if it makes sense to you. It could change the way you trade forever.