WHAT'S IT ALL ABOUT?

 

I am sure like most people you have wondered if there was another, easier way to make more money.

There would be hundreds if not thousands.

 

Many have their drawbacks, like the amount of time required, capital to get started or having to sell things to friends and family.

Each to their own and its all about what suits you, I get that.

But if you can give me 10 minutes of your time I would like to give you the details of another option that you may not have considered, That could change your life.

 

Before I do though, why do we need more money?

Many of us are feeling the rising costs of living. Our super seems to go up and down in value, banks offer us very little in interest on our money and all we seem to hear about is the doom and gloom in financial markets.

 

But, you are not being told the full story.

 

 

 

 

 

 

 

 

My name is Joseph Sammon.

And I would like to give you an insight into how you can take a slice of the biggest pool of publicly accessible money in Australia.

 

And I will tell you the full story.

Over 30 years ago, I created the first method for trading shares on the ASX, the physical Australian share market. To this day it is still the only system designed primarily for physical shares.

 

In my early twenties, I made a friendship with people within the mining sector who taught me much of what I know today. They showed me how and why shares moved up and down in value, the right information to monitor and that timing was everything.

I then researched all the trading systems available and limited software back then to help me trade the way I wanted to trade. The way they taught me. But, there was nothing available. Nothing.

 

It took me years of my own research in conjunction with what I was taught to develop my trading own system for the physical share market, doing it all manually at first, I call it Sammon Analysis.

My system and method has not altered in over 30 years.

Now if you are not familiar with the stock market, let me explain.

 

Essentially, there are 2 types of stock markets, the Physical market and the Derivatives market.

1. The physical market is the ASX or Australian Securities Exchange. This is where all publicly listed companies are stored and transacted. These shares are actual companies that have floated and are listed on the ASX. When you buy a share in one of these companies you own an actual part of the organization. In 2015 there were over 2,100 tradable companies, containing all types of companies and all sizes from the biggest of banks right through to speculative companies like gold miners. Within the physical market, there are two main categories, Industrials and resources. In Australia, our market is roughly half of each, around 1,000 companies in Industrials and 1,000 in Resource shares. We have the largest proportion of mining companies in the world.

2. The derivative market consists of products such as Warrants, CFD’s, Futures etc. these are not part of the ASX and are not connected to listed companies. These products have no direct relationship with the parent company. Derivatives are released by many different vendors. Derivatives are effectively a contract supplied by the provider for a particular share that if you purchase that contract, you are effectively betting against the provider. Some derivatives include the risk of unlimited losses. You can buy contracts for around 500 listed companies.

 

You may have also heard of the 'All Ordinaries' or the 'S&P/ASX 200', when you get the market report at the end of the day on TV, radio, online etc. They are simply an index or gauge as to what happened on the market that day. The news report may say these index's rose, fell or were flat indicating the stock market was up or down. However, these index's or indice's represent only a portion of the listed companies. Mostly, the Industrial's sector. The All Ordinaries is an index containing 490 companies and the 'S&P/ASX 200' as the name suggests contains 200 companies, usually the largest ones on the exchange out of the 2,100 actual tradable companies. Best case, these index's ignore 75% of the ASX. There are other index's that are focused on other sectors of the market, however they much less media airplay.

 

So, how do you get properly informed about listed companies?

 

Well, be careful where you look.

If you try and find a listing of all the available shares to trade in a major newspaper you will probably find at least 50% of all companies are simply not printed. If you didn’t know any better you would think the stock market only has 700 -800 companies in it.

Now if you want to get an insight from an economist or market commentator through the mainstream media you may well think the stock market is even smaller and you will probably hear about the same stocks over and over again.

 

Why?

Because they are likely to be licensed and cannot comment on the most interesting of the companies listed or they are journalists and simply don’t know.

Most end up talking about the same large blue chip companies from an investor’s point of view.

Then if you turn to the derivatives market, around 70% of all listed companies will not have available a contract to trade that stock.

But I would never trade them anyway.

Why?

 

I didn’t have the time to fully understand them. It takes years to get a full grasp of Derivatives as they can be very complicated – only 2% of adult Australian’s get involved in this area.

There were no derivative contracts available for most of the companies I wanted to trade.

So, if you look for answers in the conventional media or the derivatives market – it is likely you will miss the coming boom.

When I say boom, I believe there will be many.

 

You may be skeptical. That’s good you need that as a trader.

The way I see it, the world has had a massive financial drop, a bust. What comes after a bust?

You guessed it, a boom.

 

That probably doesn’t sound scientific enough but the evidence is there now. I see it building in share activity, new listings, joint ventures and takeovers.

 

The world and especially the US is rebalancing. China and other parts of Asia are still growing.

From now on, as demand for goods and services increases so will the demand for Australia’s resources. 

As the world recovers and buys things, they will want more iron ore, coal, LNG, gold, uranium, aluminium and so on all in great supply. They will want to come here for holidays, send their kids here for education, buy our food………

 

Australia is in the box seat.

 

And this will all show up in the stock market.

 

As always the mid tier and smaller companies on the ASX are the ones that experience more volatility or opportunities to trade. Precisely the shares that few economists or commentator's will or can talk about.

I expect the stock market to have a massive resurgence with thousands of trading opportunities over the next 10 years causing the stock market to double. With lots of mini booms, in many categories.

 

You can take advantage of that – if you are looking at the right figures, in the right place.

I believe the right place is the ASX.

But is it vibrant enough to make money?

Yes, there are literally hundreds of opportunities every year.  

 

In 2014 there were 1,993 listed company shares that went up by a minimum of 10% in value at least once.

 

My trading method will give you the ability to tap into these opportunities. And the reason it can is because of my past. This may sound odd but…

I am not highly educated or trained in economics. I am not even a licensed adviser.

 

These are the reason’s why I have been able to first identify the indicator’s and then put them into a trading method.

I have not gone to university and been taught the more conventional way to analyse the market. My perspective comes from a real life trader’s point of view not an economists. I designed my system as a trader, not from a software developer’s chair.

 

Because I am not licensed I can comment on any stock I want and give you an insight into trading that you cannot get anywhere else. Go to a licensed adviser and you will probably get recommended to buy a share in the top 400 stocks and, to buy and hold it. Most in this indutry, from an advisory role are so caught up in red tape they all end up saying the same things.

I am a stock market expert.

This may sound big headed but I think trader's, not economists are the best people to give you an indiction of what is actually going on. Because a trader will focus on what is actually happening within a share. Conventional commentators will look at the big picture, the reason a share should move. If you look at the reason, you will miss opportunities because shares won't move in value just because the should and 9 times out of 10 you will only find out what the reason is after the action has occured - and you miss another opportunity to make money. A reason, or market forces most of the time have little to do with share price movements. Watch the figures, they will tell the story. If you want stock market commentary, listen to a trader.

 

Buy & hold is investing.

Investing is long term – like how your superannuation money is invested.

Now I am not talking about investing.

I am a trader. My method I teach my students is to buy and sell stocks in short periods. Days, weeks or a few months.

 

Why trade?

That’s easy. I want to, and my students want to make more money.

You may have heard of something in the news lately called volatility.

Volatility. Its just a word for the rate at which a share or index moves up and down in value. The more volatile, the more upward and downward the price movements.

For the most part, shares move up and down in value. That’s what they are supposed to do. This is how the industry makes money.

But the media make it sound like a bad thing.

 

It’s not. It's an opportunity to make money.

It’s simply a matter of matching the game with the right strategy.

Shares are constantly moving up and down in value. Shouldn’t we match the way the share market works with the right strategy to maximize profit?

 

Yes.

Trading works with the natural flow of a share’s price movement. If the right key indicators, are met the trader will buy in. Then sell out if price or timing indicators are reached.

This process is repeated over and over again. Trading is activity based. Buy in when the indicators are identified! 

It is the only strategy that works with volatility.

 

Investing on the other hand is hoping. Investing gives no credence to entry and exit points. Investing analyses the past to try and predict the future and it does not match the way the stock market works. 

Investing is time based. If someone wanted to retire in 10 years they may sell their investments off then. Meanwhile the shares their fund manager’s have them in may have had hundreds or thousands of price movements over that time.

 

A trader may have been in and out of that share many times over that period.

 

I must note that we all need defensive assets in a balanced portfolio. You should never trade with all your money and you should never bet your house on it.

 

The same can be said for trusting others.

Have you heard of the Storm Financial or Opes Prime cases? Investor’s lost a huge amount of money because they placed all their faith in these organizations – which by the way were backed by some of the biggest banks in Australia.

No-one will look after your money like you….. no one!

 

Trading should be part of a balanced portfolio – so only consider using a percentage of your money to trade with, how much is up to you.

 

So, if you want to trade here are some rules to think about.

1. get an education – understand what you are getting into before parting with any money

2. don’t borrow money to trade with – use a smaller amount of funds until you can grow it or can afford more later

3. make sure it fits in with your busy life – don’t sacrifice family for money

4. find a time saving research tool that will do a lot of the number crunching for you, this takes away time based stress and will make you a better trader

 

After spending years manually analyzing the market and looking for a program that would do what I wanted it do, I eventually had to create my own software.

Why?

Because there was not software that included the things I needed – some of which are

 

• The 7 fields of data I required (7 fields of data in the ASX – physical share market only – 5 fields in all derivative markets)

• I needed specific data sets analysed in a non conventional way

 

I filter the entire market in seconds to a short list for me to do my research on a nightly basis taking no more than 30 minutes a night (for more experienced traders).

 

So after I developed the software, I started educating family then friends on how to trade. Word got out and eventually I was travelling Australia educating Australian’s of all backgrounds on how to trade. This suits me because I love the subject and can’t stop talking about it.

But when you have been out there talking about money as long as I have you will always get some detractors over the years, I can understand that, after all I have shaken the tree of convention. I know of 2 examples where a television money based commentator was threatened enough to comment on one of my workshops but the curious thing was he never attended. The other was one of my students, who little known to me at the time eventually turned out to be someone selling software and technology and when I refused to use his investment system he decided to comment the way he saw things in a blog.

 

Since those early days I have educated thousands of Australian’s on how to unlock the hidden

potential of trading shares.

I have even become an author. I was approached by the then business publishing

house Information Australia to write a book,

My Dad Thinks I Rob Banks, which to my surprise became a best seller then it was

re-published with another cover.

 

I have been a columnist for Fairfax and News Ltd newspapers and have been featured on

Channel 7's Today Tonight TV show.

These days I travel less and use electronic media more to get my point across.

One of which is…..

Never lose a lot of money!

 

Good share traders will never be caught in a major crash and so will never lose the majority of their capital. Why?

Because, they are always watching market. Traders understand the key indicators and will act on them. Trader’s have the power, because they make the decisions.

 

To be a successful trader you only need:

• a willingness to learn

• the ability to stick to the rules

• the ability to act un-emotionally when it comes to money

• an effective trading method

 

Oh, and always remember, a share can only move in 3 directions, up, down and sideways. The key is putting these movements and indicators together.

Once you do that a full picture of the state of play will emerge. A good trader will already be out of the market .

 

In all my years of trading, in every case of a crash or significant correction, the figures have told me to sell out or remain out of the market before the event happens.

So, if you are interested in finding out more about how you can take advantage of share price movements please send me an email and I will respond personally.

 

My workshops and training are step by step and you will have access to the training to refresh your knowledge for life.

Check out my website to look at the free entry level training so you get an idea how it works.

 

If you would like to get more information about my next workshop sessions please email me at  

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Sincerely

Joseph Sammon