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MarketWorx: Technical Analysis & Trading Shaun van den Berg 11 October 2011.

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Presentation on theme: "MarketWorx: Technical Analysis & Trading Shaun van den Berg 11 October 2011."— Presentation transcript:

1 MarketWorx: Technical Analysis & Trading Shaun van den Berg 11 October 2011

2 Make Money Investor Trader Technical Analysis WEN Charting Position Trading Day Trading SSF Equities CFD Agenda Swing Trading

3 Share Market Analysis Share Market Analysis Fundamental Analysis Technical Analysis Macro Fundamentals Micro Fundamentals Volume Price

4 Technical Analysis Technical Analysis Fundamentals Trends Supply & Demand Price Volume Patterns

5 Market Psychology 1 st Stage Things are getting better 2 nd Stage Improvement Is actually underway 3 rd Stage Things will get better forever 2 nd Stage Things are deteriorating 1 st Stage Things would not always be rosy 3 rd Stage Things can only get worse

6 Technical Analysis Price Charts –Closing Line Charts –Bar Charts –Bar Volume Charts –Point & Figure Charts –Candlestick Charts Breakout Trading –Cycle & Trend Analysis –Support & Resistance –Trend Lines –Continuation Patterns –Reversal Chart Patterns Swing Trading Strategy –Moving Averages 10-day SMA & 30-day EMA 200-day SMA –Technical Oscillators OBOS & Momentum RSI & Stochastic MACD –Volume Analysis On Balance Volume Volume Price Trend –Relative Strength Analysis Relative to Sector Relative to JSE Overall

7 Price Charts: Closing Line Chart

8 Price Charts: Bar Chart High Close Low Open

9 Price Charts: Bar Volume Chart

10 Price Chart: Point & Figure Chart

11 Point & Figure Charts – Double Top Formation

12 Point & Figure Charts – Double Bottom Formation

13 P & F Charts - Variations of the Double Top & Bottom Formation

14 Point & Figure Charts – Bullish Signal Formation

15 Point & Figure Charts – Triple Bottom Formations

16 Point & Figure Charts– Formations in Combinations

17 – Variations on the Triple Top Point & Figure Charts – Variations on the Triple Top

18 P & F Charts - Variations on the Triple Bottom Formation

19 Point & Figure Charts – Bearish Signal Formation

20 Point & Figure Charts – Symmetrical Triangles

21 Point & Figure Charts – Triple Top Formations

22 – The Broadening Formation Point & Figure Charts – The Broadening Formation

23 Point & Figure Charts – Bullish & Bearish Catapult Formations

24 P&F Charts– Bullish & Bearish Signal Reversed Formations

25 Point & Figure Charts– Bullish & Bearish Support Lines

26 Point & Figure Charts– Bullish & Bearish Resistance Lines

27 Horizontal Count (Upside) The upside target in the chart below = (14 x 5 x 3) + 0 = 210c

28 Horizontal Count (Downside) The downside target in the chart below = 100 - (6 x 5 x 3) = 10c

29 Price Chart: Candlesticks

30 Gather Information: Technical Analysis Checklist Trending (Up/ Down) Outperformance/ Underperformance Overbought/ Oversold Cycles Support & Resistance Moving Averages Trend Lines OB/OS & Momentum RSI & Stochastic / MACD OBV & VPT Relative Strength Analysis

31 Trends & Cycles Bull Bear Sideways CorrectionsRallies

32 Trends & Cycles Bullish Trend Bearish Trend Bullish Trend

33 Market Cycles - Bull Higher Highs, Higher Lows

34 Market Cycles - Corrections

35 Market Cycles - Bear Lower Highs, Lower Lows

36 Market Cycles - Rallies

37 Support & Resistance Reversals

38 Support & Resistance Resistance Support Resistance Support Resistance Support & Resistance levels highlight possible “turning points” Support Resistance Support

39 Support & Resistance The more times a share price has touched these areas, the more valid these levels are & the more important they become. The longer these support & resistance levels have been in play, the better the outcome when the share price finally breaks out.

40 Support & Resistance - Bull Resistance Support Resistance/ Support Support Support Resistance

41 Support & Resistance - Bear Resistance/ Support Support Support Support Resistance/ Support Resistance Resistance

42 Trend Lines Support Trend Line Resistance Trend Line Support Trend Line Resistance Trend Line As long as the price stays above/ below the Support or Resistance lines, the trend is either bullish or bearish

43 Trend Lines - Bull Support Trend Line Resistance Trend Line Support Resistance Resistance Support Trend Line

44 Trend Lines - Bear Support Trend Line Resistance Trend Line

45 Failed Breakouts

46 Entry Points Once prices are set to close above a resistance level, a trader will establish a bullish position. When prices are set to close below a support level, a trader will take on a bearish position.

47 Exit Points How long am I planning on being in this trade? (Depends on what type of trader you are: Position, Swing or Day Trader) How much risk am I willing to take? –Setting near-term profit targets that execute at opportune times to maximize profits. –Here are some common execution points: Retracement levels. Trend line breaks (Support & Resistance). Any other technical points. –Developing solid stop-loss points that immediately get rid of holdings that do not perform. –Creating exit strategies based on technical factors affecting the short-term.

48 Exit Points Where do I want to get out? –Many people become irrationally attached to their holdings & hold these equities when the underlying fundamentals of the trade have changed –Traders sometimes worry & sell their holdings even when there has been no change in underlying fundamentals. Both of these situations can lead to losses & missed profit opportunities. –Set a point at which you will sell takes the emotion out of trading. –The exit point itself should be set at a critical price level, i.e. technical points e.g. Retracement levels

49 Rectangle Formation 24 to 30 = 6

50 Triangles

51 Ascending Triangles TP

52 Descending Triangles TP

53 Flags

54 Pennants 27 to 33 = 6 31 + 6 = 37

55 Triangles

56 Triangles

57 Triangles TP

58 Breakout Trading: The Steps 1.Identify the candidate 2.Wait for the breakout 3.Set a reasonable price objective 4.Allow the share to retest 5.Know when your trade has failed 6.Exit at your price target (TP) 7.Be patient

59 Breakout Trading: The Steps Resistance Support 118 to 137 = 19 137 + 19 = 156

60 Breakout Trading: The Steps Resistance Support Resistance / Support

61 Breakout Trading: The Steps Resistance / Support Support Resistance

62 Double Tops

63 Double Bottoms

64 Triple Tops

65 Triple Bottoms

66 Double Tops & Bottoms Double Bottom Triple Top

67 Double Tops & Bottoms Double Bottom Double Top Triple Top

68 Head & Shoulders

69 Head & Shoulders Target Price

70 Head & Shoulders LS Head RS Neckline Head & Shoulders Target Price

71 Inverse Head & Shoulders 8.5 to 10.0 = 1.5 10.0 + 1.5 = 11.5 TP

72 Inverse Head & Shoulders LS Neckline Head RS Target Price

73 Inverse Head & Shoulders LS Neckline RS Head

74 LS Head RS Neckline LS Head RS Neckline Target Price

75 Falling Wedge

76 Rising Wedge

77 Falling Wedge 19.55% in 5-days

78 Falling Wedge Breakout & confirmation 10.19% in 3-days Increased volume

79 Rising Wedge - 8.38% in 13-days

80 Breakout Trading: Conclusion Breakout trading welcomes volatility. The volatility experienced after a breakout is likely to generate emotion because prices are moving quickly & in a volatile fashion. Using the steps & information covered will help you define a trading plan that, when executed properly, can offer great returns & manageable risk.

81 “A good (trading) plan today is better than a perfect (trading) plan tomorrow” General George S. Patton The Trading Plan

82 “Trading provides one of the last great frontiers of opportunity in our economy. It is one of the very few ways in which an individual can start with a relatively small bankroll and actually become a multi-millionaire” Jack D Schwager The Trading Plan

83 1.Know Yourself, Know Your Purpose 2.Trading Goals 3.Markets, Instruments & Timeframes 4.Tools of the Trade 5.Before the Market Opens … 6.Risk & Money Management 7.Exit Strategy 8.Trade Strategies, Setups & Entries 9.After the market closes … 10.Discipline 11.Golden Trading Rules … The Trading Plan

84 Who needs a Trading Plan? Unless you are consistently profitable trader over a sufficient length of time to encompass a number of different market conditions – then YOU need a trading plan! If you have achieved this: – Refresher course –Open your eyes to new aspects of trading that can improve your profitability Consistently profitableConsistently profitable

85 What will the Trading Plan Do? Makes the act of trading simpler Limits your opportunity to make bad trades It will prevent psychological issues Act like a roadmap / Personal GPS –Either something in the plan is not working –You are not adhering to the trading plan Take away much of the decision making –Emotional & irrational decisions Enable you to trade outside comfort zone –Prevent letting losses run & cutting profits short Instill a large measure of discipline

86 1.Know Yourself, Know Your Purpose Understand your psyche & sentiment Decide what you want to achieve, ask why & how trading is going to provide it? Why do you want to be a trader? What sort of trader are you? What are your strengths & weaknesses? Are you in the right frame of mind to trade? What are your income targets?

87 2.Trading Goals Setting goals are essential –Beacon to work towards –Track progress –Motivation required Define goals in terms of your development as a proficient trader –Annual Trading Goals –Monthly Trading Goals –Weekly Trading Goals –Daily Trading Goals

88 3.Markets, Instruments & Timeframes Decide which markets will you trade? Which instruments will you trade? –Basket of shares / whole market? –SSFs / CFDs – Top 40 / Mid Caps? –Currency Futures – Currency pairs? Which timeframes will you trade? –Day Trader – Minutes & Hours? –Swing Trader – Days & Weeks? –Position Trader – Months & Years?

89 4.Tools of the Trade What financial vehicle will you use to trade? –Equities, Warrants, CFDs & SSFs? What broker & trading platform will you use? What Live Prices are you going to use? Which charting software will you use?

90 5.Before the Market Opens … What is your daily pre-market routine? –Have you analysed yesterday’s trades? –Do you have any positions open? What are the general market conditions? –What will you do today – hour by hour? Which instruments are on your watch list?

91 6.Risk Management General Risk Management What is your attitude towards risk? What is the overall market risk? What is the sector risk? What is the broker & hardware risk? What is the strategy risk? Specific Risk Management What is the probability of a successful trade? What is the Risk- Reward ratio? What is your risk per trade? Where will you place your stop loss order? When will stop trading?

92 6.Money Management General Money Management Large draw downs & profits What will you do? Which money management approaches will you utilise? Specific Money Management Will you lock in profits? How will you determine your position size?

93 7.Exit Strategy Losing trades –Will you exit before your stop is hit? – Which signals will see you exit early? Winning trades –Which signals will see you exit completely? –Which signals will see you close half? –Which signals will see you close the remainder?

94 8.Trade Strategies, Setups & Entries Which strategies will you trade? What are your trade setups? How will you find your setups? Which signals will trigger your entry?

95 9.After the market closes … Have you recorded today’s trades? Did you execute your trades according to your trading plan? Have you completed your trading journal?

96 10.Discipline Back test or forward test? What are your promises to yourself? –What questions do you ask after a winning trade? –What questions do you ask after a losing trade? What steps do you take to learn more about trading?

97 11.Golden Trading Rules Protect & preserve capital! Always set a stop loss, always! Cut your losses short – Let your profits run! Trade what you see – Not what you think! Never chase your losses, ever! Never average down, ever! Keep excellent records! Maintain discipline! Keep it simple! Plan the Trade – Trade the Plan!

98 The 3 M’s

99 “ “While a trading plan cannot predict the future, it can lay down how you react to the possible outcomes. This is why a trading plan is essential. It is a list of strategic responses to events beyond your control. You control the only thing you can control – YOURSELF!” Alpesh B. Patel [Author of the book “Trading Online”] The 3 M’s - Mindset

100 Attitude - How you react Self Confidence - Belief in yourself Objectivity - Increase impartiality Patience - Watching & waiting Discipline - Stick to your plan

101 "The longer I live the more convinced I become that life is 10% what happens to us and 90% how we respond to it.” …Charles Swindoll The 3 M’s - Mindset

102 “Successful trading requires us to be aware of our emotions. It often requires us to go against our natural inclinations or emotional responses in order to see profits.” The 3 M’s - Mindset

103 Greed The 3 M’s – Mindset Greed Fear Caution Moderation Fear

104 Make Money Investor Trader Technical Analysis WEN Charting Position Trading Day Trading SSF Equities CFD Trading Swing Trading

105 Make Money Investor Trader Technical Analysis WEN Charting Swing Trading Break-out Trading Equities Agenda SSF CFD

106 CFD Product Description Go ‘Long’ & ‘Short’ with CFD’s on Top 100 JSE listed shares Margin deposit requirements 15% Top 40 shares / 17.5% on next 60 shares Variation margin required for adverse share price movement. Brokerage = 0.4% per transaction Breakeven = 0.92% (VAT included) Zero UST Financing at competitive rates: Current borrowing rate 6.50% (± Prime – 2%) Minimum Exposure per trade of R25 000 (R4 500 margin) Derivative - A contract whose value depends on (or derives from) the value of an underlying share e.g. share – ANG, BIL, SOL

107 Top 100 Shares: CFD Margin List reset after each Quarterly futures Close out 15% Top 40 17.5% Next 60

108 Important notes on CFD Long & Short Positions Pay interest at SAFEX + 2 % p.a. (± Prime -2%) The holder will receive a synthetic dividend –Dividend is not earned tax free as a CFD is a derivative contract –In the case of a Long CFD, a holder of a long contract will be paid an amount equal to the dividend by issuer. –This is seen as an income and is subject to tax You pay a script lending fee of 1.5% p.a. (Min R456) Receive interest at SAFEX -2 % p.a. The holder is liable for the dividend –Dividend is not earned tax free as a CFD is a derivative contract –In the case of a short CFD, a holder of a short contract will have to pay the dividend to the issuer

109 Pro’s & Con’s of CFD Trading Advantages Low trading costsLow trading costs No expiry dateNo expiry date Hedge your current portfolioHedge your current portfolio All the benefitsAll the benefits Disadvantages Gearing & RiskGearing & Risk No voting rightsNo voting rights

110 Comparison with traditional shares CFDTraditional Equity No physical equity holding Do not pay UST No voting rights Earn synthetic dividends Physically hold equity Pay UST of 0.25% Voting rights Earn real dividends Leveraged trading Settle only collateral (15% - 17.5%) plus top-up if required Gearing provided at cheap rates (Safex +2% or roughly Prime -2%) Not leveraged Must settle full exposure amount Expensive to borrow against shares Settlement Period Settled T+1 Settlement Period Settled T+5 Taxation Considered a Trader Added to personal income (Trading Instrument) Taxation Capital Gains Tax (CGT) (Investment Instrument) Easy to short Suitable for both hedging & trading opportunities Typically long only

111 What are SSFs? A standardised contract. Of a standard quantity (100) of a specific underlying listed share Requires a fixed margin deposit to open a position (around 15% of the total value). Expiring on a predetermined future date: Third Thursday of every March, June, September & December. Gives the owner the right to close the contract at a price agreed when entering the contract, including all relevant dividends & interest. SSFs are listed on the South African Futures Exchange (SAFEX), a subsidiary of the JSE. SSF contracts equate to100 shares of the underlying instrument. SSFs are created at the close of trading. All unmatched SSF orders expire at the end of the trading day. All partially matched orders will be cancelled at the end of the day.

112 Comparable to Equities INVESTOR A (Share Trader) INVESTOR B (SSFs Trader) Confident that Sasol shares will increase. She has R35 000 which she can invest. Sasol’s share price is R350, therefore she buys 100 shares. 3 months later the price has increased by 10% so she sells her shares to make a R3 500 profit. Her return on her investment is 10%. The initial margin set by the broker is R6 000 which is paid by the buyer. Sasol’s share price is R350, therefore she buys 1 contract. After 3 months the price has increased by 10% & the investor closes out his position & sells out of the Sasol SSF contract. His profit is R3 500 but his return on his investment is 58%.

113 Comparison between SSFs &CFDs Single Stock FutureContracts for Difference Regulated by JSE/FSB Exchanged traded product Expiry Date= Rollover costs Set principle amount Interest agreed upfront Wholesale interest rates Best execution Free markets Transparent Guaranteed by SAFCOM No dividend paid/received Fungible financial instrument Can take physical delivery Unregulated Trades OTC No Expiry Date Principle amount could change daily Interest fluctuates daily Retail interest rates No best execution obligation Captive markets Opaque Not guaranteed by SAFCOM Manufactured dividends Never physical delivered

114 SSF Margin Initial margin per contract Top 40 – Central Next 60 – Traditional

115 (Central) SSF Order Book Top 40 Shares ALSI & ALMI Copper, Gold, Platinum & Silver WTI Crude Oil

116 (Central) SSF Order Book Margin = R27 000 Exposure = R270 000 Cost R25 per contract 100 points move = R1000

117 (Central) SSF Order Book Future Price = Spot Price X 1 + (IR x t)

118 SSF Order - Short

119 (Traditional) SSF Order Book

120 Swing Trading Strategy Step #1: What Market Stage? –Stage 2 or Stage 4 Step # 2: Elliott Wave Cycle –Wave 2 or Wave B Step #3: Trading Trends –Uptrend = Higher Highs & Higher Lows –Downtrend = Lower Highs & Lower Lows Step #4: Trader’s Action Zone (TAZ) –Buy Pullbacks & Short Rallies Step # 5: Swing Points –Entry – Swing Points Low (SPL) – Bullish Candlesticks –Exits - Swing Points High (SPH) – Bearish Candlesticks

121 Swing Trading Strategy (Cont.) Step #6: What Candle Stick Pattern? –Bullish Candle Stick Patterns –Bearish Candle Stick Patterns –Neutral Candle Stick Patterns Step # 7: Money Management –Position Size Step # 8: Risk Management –Technical Stop Loss level

122 Step #1: What Market Stage? Long Short

123 Step #1: What Market Stage? Anglo (AGL) Stage 2 or Stage 4? Stage 1 Stage 3 Stage 4 Stage 2 Stage 1 Stage 2

124 Step # 2: Elliott Wave Cycle

125 Step # 2: Elliott Wave Cycle Step # 2: Elliott Wave Cycle Anglo (AGL) Wave 2 or Wave B? Wave 1 Wave 3 Wave 4 Wave 2 Wave A Wave B Wave 5 Wave C?

126 Step #3: Trading Trends Trade Trending Markets

127 Moving Averages (Long & Short) Step #3: Trading Trends Moving Averages (Long & Short)

128 Step #4: Buying Pullbacks (TAZ)

129 Step #4: Shorting Rallies (TAZ)

130 Step #4: Buying Pullbacks (TAZ)

131 Step # 5: Swing Points (Entry & Exits)

132 Swing Point Low (SPL)Swing Point High (SPH)

133 Step # 5: Swing Points Lows (Entry)

134 Bullish Candlestick Patterns



137 Bearish Candlestick Patterns



140 Reversal Candlestick Patterns

141 Neutral Candlestick Patterns

142 Secondary Technical Indicators –OB/OS –Momentum –MACD –RSI –Stochastic Volume Analysis Relative Strength Analysis It must be remembered that no indicator should be used alone.

143 Overbought / Oversold (OB/OS) OB/OS = Price - MA x 100% MA Oversold – Buy Zone Overbought – Sell Zone

144 Momentum Indicator Momentum = Price A - Price B x 100% Price A Oversold Overbought

145 OB/OS & Momentum Indicators

146 RSI Indicator Overbought Oversold Bearish Divergence RSI =100- {100/ 1 + (U/D)} 14 = UP = 100 14 14 = Down = 0 14

147 Stochastic Indicator Sell Zone Buy Zone Stochastic = Close - Low x 100% High - Low Buy SellSellSell 14 = Hi = 100 14 14 = Lo = 0 14

148 RSI & Stochastic Indicators Bearish Divergence

149 MACD Indicator (OB/OS) Overbought Oversold

150 MACD – Crossovers (Trigger Line)

151 MACD – Crossovers (Zero Line)

152 MACD – Divergence Early Warning: Change in trend Bullish Divergence

153 Volume Analysis ???

154 Volume Analysis volumes Low volumes Indecisive Consolidation Market Bottoms Low volumes High volumes New Trend High volumes Market Tops

155 OBV Indicator

156 VPT Indicator

157 OBV & VPT Indicators Volume Distribution Neutral Volume Volume Accumulation

158 Relative Strength Indicator Under-perform Data 1 = Anglo Data 2 = Top 40 Index Market Perform Out-performUnder-perform

159 Relative Strength Indicator Data 1 = Anglo Data 2 = BHP Billiton Under-perform Outperform

160 Technical Check List What is the direction of the JSE Overall Index? What is the direction of the Sector Index? What are the weekly/ monthly sector /share charts showing? Are the primary, secondary & minor trends up, down or sideways? What are the important support & resistance levels? Where are the important trend lines & channels? Where are the 33%, 50% & 66% retracement levels? Are there any price gaps, and what type are they? Are there any major reversal patterns visible? Are there any continuation patterns visible? What are the price objectives from these patterns? Which way are the moving averages pointing? Are the oscillators overbought or oversold? Are there any divergences apparent on the oscillators?

161 Make Quick Decisions BUY HOLD WATCH SELL

162 Make Quick Decisions Watch

163 Creating a Watch List of Winners Fundamentals = PSG Online website Technicals = Wen Charting*

164 Hi-Liter Scanner (Step 1:Criteria) Hi-Liter Criteria

165 Hi-Liter Scanner (Step 2: Results) Hi-Liter Results

166 Hi-Liter Scanner (Step 3: Confirm) View Chart

167 Summary: Technical Analysis Price Charts –Closing Line Charts –Bar Charts –Bar Volume Charts –Point & Figure Charts –Candlestick Charts Cycle & Trend Analysis –Support & Resistance –Trend Lines Breakout Trading –Continuation Patterns –Reversal Chart Patterns Swing Trading Strategy –Market Stage –Elliott Wave Cycle –Trading Trends –TAZ –Swing Points Technical Oscillators –OBOS & Momentum –RSI & Stochastic –MACD Volume Analysis –On Balance Volume –Volume Price Trend Relative Strength

168 "The most important thing is money management, money management, money management. Anybody who is successful will tell you the same thing." Marty Schwartz The 3 M’s - Money Management

169 "Do not focus on making money; focus on protecting what you have.” …Paul Tudor Jones The 3 M’s - Money Management

170 Capital allocation (Position sizing) For each trade, how much of our capital do we commit? –Trade with 50% of total capital ( Earn interest & Variation Margin) –Position Size - Number of Contracts/ Shares Setting stop losses For each trade, where do we place our stops? –Initial Technical Stop (Support & Resistance) The 3 M’s - Money Management

171 Money Management Money Management Position Size & Margin (Harmony) You decide to buy Harmony Gold at R80.10 You set a 3% stop loss (R80.10 x 3% = R2.40 ) –R80.10 – R2.40 = R77.70 You are willing to risk 2% of your capital = R2000. Take R2000 & divide it by the R2.40 per share that you are risking Your position size = you can buy 833.33 shares –(R2000 / R2.40). The SSF initial margin required is R1387.50 –833 shares = 8 contracts = R1387.50 x 8 = R11 100 –Exposure = 8 x 100 x R80.10 = R64 080.00

172 Money Management Money Management Position Size & Margin (Anglo) Assume you have a R100 000 CFD trading account You decide to buy Anglo’s at R339.05 You set a 3% stop loss at R328.88 –R339.05 x 3% = R10.17 (R339.05 – R10.17) You are willing to risk 2% of your capital if the trade goes wrong = R2000. Take R2000 and divide it by the R10.17 per share that you are risking. That gives your position size. –In this example, you can buy 196.66 shares (R2000 / R10.17). –Margin = 197 x R339.05 = R66 792.85 x 15% = R10 018.93 –For SSFs, the initial margin will be R5700 x 2 contracts = R11 400

173 CFD Order Book Buy 100 Anglo shares @ R339.05 Exposure = R33 905.00 15% Margin = R5 085.75 100 Anglo shares = R33 905.00 0.4% Brokerage = R135.62 14% VAT = R18.99 Total = R154.61 R305.15 R33 905 x 6.5% = R2203.83/365 = R6.04

174 Risk Management The Stop-Loss Strategy The spot that represents maximum loss that you will take on a trade. Original trade idea was incorrect. The market tells you when it reaches the stop loss point. Cut your losses & move on.

175 Risk Management Risk Management Technical Stop-Loss Strategy The stop-loss comes from the chart. It is the first thing one needs to know about any particular trade. Can decide how many contracts to trade so as not to exceed the maximum loss per trade he has determined in the trading plan. First step to following your stop. –Have a contract size you can live with.

176 Placed at a logical point on the chart –Breaking of a support or resistance level –Breaking of a trend line Highly recommended because the chart “tells” you where to place the stop. Risk Management Risk Management Technical Stop-Loss Strategy


178 Step 1: Setup Price (Trigger) Select “Below” for Longs Enter Technical Price Select Price Watch

179 Setup the Stop Order (Bullet) Select “Close” Enter Quantity Enter Worse-case scenario price Select Stop Order Click Submit Price Watch & Stop Order button

180 Summary: Trading Step 1: Financial objectives Step 2: Watch List of potential winners Step 3: Mindset Step 4: Method of Trading Step 5: Money & Risk Management

181 “Many know, few do” Justin Cohen Justin Cohen

182 Conclusion Have you learnt how to “Make Money?”Have you learnt how to “Make Money?” Feedback FormsFeedback Forms Link to MarketWorx presentationsLink to MarketWorx presentations –Will be available soon! Open a Trading Account with PSG OnlineOpen a Trading Account with PSG Online –Online Trading Course –Equity & SSF Simulator –Research Tools DataShare Download @R169 p/mDataShare Download @R169 p/m –Software is FREE! Good Luck & Happy Trading!Good Luck & Happy Trading!

183 Thank You (011) 996 5200

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