Covered in this months newsletter:

• Current market update
  
  
• Smart Trader Teleconference Program – spaces are filling fast
  
  
• Recent trade - windfall profit action
  

Just a quick reminder, that I am speaking about the Power of CFDs at the next ATAA meeting in Sydney on Monday 18 May. You are welcome to come along to the event. You will just need to complete a visitors form and bring it with you. For more information on the event and to access the visitors form click on this web link to go to the Seminars Web Page:

Join me live in a 4 Month Teleseminar Event - Starts 3 June

I am very excited about this upcoming Smart Traders Teleconference Program and you may have received my exclusive invitation.

I have shared over the years how I have consistently profited in the market through trading CFDs. From the 82%* return on my CFD account over a 6 week period in the 2007 CMC Markets CFD trading competition (which I covered in my book "Smart Trading Plans"), to a 300%* return over 8 weeks in my Smart CFD Trading Diary. I am going to share with you again, this time in the form of a Teleseminar event.

In this event I will share every trade that I undertake each month with you - including trades I have opened, trades that I have exited and those that are still active. You will get to see my winning and losing trades and how I handle each one.

The teleseminar program starts on 3 June and includes monthly teleconference phone calls with me over a four month period. I email notes to you prior to the teleconference call with charts of every trade from that past month. I then discuss each trade during the call and you will have the opportunity to ask me questions either on the call or in the discussion forum, which will be live and available over the teleconference period. All teleconference calls are recorded, so if you can’t make the live call you will have a chance to listen after the event.

Places are filling fast so ensure you book early to secure your place in the program and take advantage of the early bird special, which ends 22 May.

Market Update

Last week the market moved to new six month highs breaking through the 3850 resistance level that is clear in the ASX 200 chart below. The build up to this breakout has provided some amazing buying opportunities in the market with some shares more than doubling in price since their recent lows.

I have been building into some long positions over the past two months from signals in my Daily Breakout Trading System. You can see one of my recent trades below which more than doubled in price from my entry. I have many more trades that I will be sharing with all those that join the Smart Traders Teleconference event.

The market has broken a significant resistance point and made a new high, which is a good sign. Whether it is now going to trend upwards and move back into a bull market or churn sideways again, we will soon find out. The slower the move upwards the easier the market will sustain it, but the faster the move, the sharper the reversal will be.

I will simply continue to follow my trading plan, take the signals my system generates and manage all my trades through my strict money management rules which are the key to my successful trading. You can learn more about this anytime through the Smart Trading Plan & System Development Course. Here is what one of my recent clients had to say about this course which he purchased as part of the Smart Deluxe Training Pack:


"Thank you Justine I have just finished your Smart Deluxe Training Pack, and I am very impressed with all the 11 modules. You make it so easy to understand. I have traded CFDs in the past but kept getting stopped out from too tight stops, making little profits & getting nowhere. But with your trailing stops this will sort all my problems out. Your money management is more then I expected and the spread sheets should accelerate my trading. Thanks to you Justine, I wish I had known about you 4 years ago when I first started trading. I think every new & seasoned traders should do your course our at least have your Smart Trader Spreadsheet. Thank you Justine, I am a much happier trader."

Windfall Profit Trade

There has been some fabulous breakouts over the past two months and I have been building into some incredible trades. But it is trades like the one below that make me the big money in the market and they require the use of windfall profit rules to protect some profits when moves like this happen.

The trade I am talking about is Biota Holdings (BTA). A biotechnology stock that produces one of the flu vaccines and surged dramatically after the mass media attention on the Swine Flu. I was already holding this share CFD after it broke out of its trading range back on 16 March at 58c. My daily system had been bringing it up prior to the break and when it moved to new highs again, I entered. The chart below shows my entry and exit from this trade.

My plan was to pyramid and add to the trade if it broke through $1, which it did on 27 April. But instead of pyramiding I was now in a windfall profit situation as the share had risen 82% of its value in one day. I moved my trailing stop loss up that day and as it was a nice white candle with strong volume and another entry signal I decided to hold the entire trade. The next day it was clear that profit taking was occurring as the share rejected the higher prices with the long wick and red candle. This was my sign to take windfall profits and I sold half the trade at $1.49. I then held the remainder with a Guaranteed Stop Loss order at $1.27, which are only available to set through CFD trading, and I was taken out of the rest of the trade a week later at this price.

The share did continue to fall after I exited and I was able to protect some of my open profits by selling half after the large rise. Then by leaving half the trade still open I had the potential to take more if the share took off again, which it did not. I find by selling half I am then comfortable holding the remainder to my stop and if the share does move again I still have a position open. It can be a lot harder to re-enter a stock you were in if it jumps in price again.

I held this trade for a total of 49 days and made a return on the total trade size of 134%*. That is more than double my entry price. With a 5% CFD margin on this trade, this equated to a return on my capital outlay of 2340%*. It is trades like this that make you the large profits in the market and it is always great when you get on board a good thing.


If you would like to see more of my market action and a run down of my trades each month, then consider joining the Smart Traders Teleconference Program. It is going to be an amazing four months and I am looking forward to sharing all my trades throughout this program.

Until next time, happy trading and hopefully I may meet up with you at the ATAA Sydney meeting on 18 May.

Cheerio

Justine Pollard
Author, Private Trader & Trading Mentor
'Discover the Smarter way to trade'
www.smarttrading.com.au
justine@smarttrading.com.au

Smart Trading Pty Ltd is a Corporate Authorised Representative of CDM Pacific Pty Ltd AFSL 223682

The returns reported are provided for information purposes only. Results of past performance are no guarantee of future returns. No assurance is given that you will incur any profits or losses in your own trading and it should not be assumed that you will experience results comparable to those as reported. Any trade examples listed within this website or associated material are either ficticious or historical and in no way should be interpreted as a recommendation to invest in any particular stock, CFD or investment. Smart Trading Pty Ltd as Authorised Representative No.336312 of CDM Pacific Pty Ltd AFSL 223682 assumes no responsibility for your trading and investment decisions or subsequent results. There is a high degree of risk involved in trading and as such we always recommend that you seek independent financial advice by a licensed professional prior to making any investment decision.