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Kelly Trading Workbook

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100% found this document useful (1 vote)
198 views

Kelly Trading Workbook

Uploaded by

Nathan Buño
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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TRADING FROM HOME 2021

Learn how to Trade and Profit from extreme Volatility

“For Every action, there is an equal and opposite reaction.”


Sir Isaac Newton
Welcome

Thank You firstly for participating in this exclusive online training


program during what has become a historical and difficult time
for many people around the world.
What started out initially as an experiment and also a request to
find a way to make a living whilst staying at home as well as
seeing if we really can create and benefit from simplicity this had
very quickly turned into something very big.
We all came together online from all over the world and we
united to take on one of the biggest businesses in the world.
The Global Financial Markets.
I sincerely hope that I can show you and share with you that by
learning the skill of Trading and harnessing the tools you have
today that I didn’t have more than 36 years ago... you can now tap
into the Global Markets from anywhere in the world and create
Your Own Economy.
Thank You for being part of this Journey and I truly hope we meet
in person one day as I would love to hear about Your Journey and
how we came together online.

Best Wishes with Warm Regards,

Sandy Jadeja
Copyright © SignalPro PTE LTD 2021 Page | 2
Disclaimer

It should not be assumed that the methods, techniques or indicators presented in these
courses will be profitable or that they will not result in losses. Examples presented are for
educational purposes only and are not solicitations or recommendations of any order to buy
or sell in a currency pair, stock, share, future, CFD, option or any other financial instrument.
Sandy Jadeja and associated affiliates assume no responsibility for your trading results or
decisions. Past results are not indicative of future returns, and financial instruments can go
down as well as up resulting in you receiving less than you invested. Do not assume that any
recommendations, insights, charts, theories, or philosophies will ensure profitable investment.
Trading financial markets can be risky and you may incur losses greater than your original
investment.

SIGNALPRO COURSE MATERIALS - TERMS AND CONDITIONS


THIS IS A LEGAL AGREEMENT BETWEEN YOU AND SIGNALPRO PTE LTD AND ITS
AFFILIATED ENTITIES.

RIGHT TO USE COURSE MATERIALS


Subject to your compliance with this agreement and the payment of the applicable fees,
SignalPro PTE LTD and its affiliates grant to you a personal, non-transferable, non-exclusive,
limited right, without right to sublicense, to use the Course Materials solely for your personal
training and education. This right is granted for one user only.

RESTRICTIONS ON USE OF COURSE MATERIALS.


You may NOT copy, reproduce, share, modify, rent, lease, distribute, sell, sublicense, transfer
or use in any way except for in accordance with the limited right granted herein the Course
Materials or any part thereof. You may not assign this right without the prior written consent
of SignalPro PTE LTD. You agree to use the information contained in the Course Materials
solely for yourself and not to disclose or make available to any person, company or websites
any of the information contained therein. Except for the limited right to use granted herein,
all rights in and to the Course Materials, and all copies thereof, are retained by SignalPro PTE
LTD, including, without limitation, all patent rights, copyrights, trademark rights and trade
secret rights. You acknowledge and agree that the Course Materials are owned and
copyrighted by SignalPro PTE LTD and/or its affiliates and are protected by U.K. Singapore,
and foreign copyright law and international treaties. You agree not to remove or alter any
copyright or other proprietary rights notice of Signalpro PTE LTD and/or its affiliates in or on
the Course Materials.

Copyright © SignalPro PTE LTD 2021 Page | 3


Let’s get Started…

What are we trying to do and how will this course help you?

Essentially, we want to work with the tools we have at hand


namely a Computer, Tablet or Mobile phone and tap into the
Global Markets.

The Markets Move – and we want to capture a piece of that


movement to turn this into a profit whilst minimising risk and
detaching from emotions.

If we can do this successfully then we have a great business where


we are truly portable and in control of our life rather than being at
the mercy of the Economy.

Let’s Get Started and Tap into the World’s Financial Markets.

Copyright © SignalPro PTE LTD 2021 Page | 4


What is Trading?

Trading is exciting, fast-paced and intense and you may have


heard about it before, but what does it mean?
Trading is all about buying and selling. The point of buying and
selling financial products is to make a profit.
• It can be done anywhere in the world.
• Anyone can be a trader, including you.
• You are speculating on how you think the price of a product
will move up or down.

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One Simple Rule

Trading is based on one simple rule:


If you think the price of a market is going up, you Buy.
If you think the price is going down, you Sell.
This rule is the same across all the different markets and
strategies.

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Which Markets Can You Trade?

You can choose from thousands of Markets, each one different


from the next. Here are some of the most popular markets:
• Forex - Trillions of dollars. That’s how much money is
exchanged every day on the biggest financial market in the
world – Forex!
• Shares - Ever heard of Facebook, Google or Netflix? You can
trade them.
• Indices - Trade the strengths and weaknesses of the biggest
companies in a country by opting for Indices.
• Commodities - Oil. Gold. Silver. Zinc. All these natural
products make our world go round, and they make up our
Commodities market.

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A Trading Example Forex – EUR/USD

The price of a market can either go up or down and you’re always


speculating on how you think the price of a market will move.
Let’s look at an example…

You think the price of Euro will rise against the dollar, so you buy.
The price of the Euro rises, so you have made a profit.

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You think the price of Euro will fall against the dollar, so you sell.
The price of the Euro falls, so you have made a profit.

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Managing Risk

Before you start trading, there are certain things you need to know.
One of the most important is risk. Risk is different for each of us.

• Unique to your wants and needs.

• Consider your goals and standards, ideally before placing a


trade.
The most important thing about risk is that you need to be aware of it
and know the tools that you can use to balance risk and opportunity
effectively. Trading platforms provide some handy tools, here are two
examples:

• Guaranteed Stop Loss Order – Allows you to set the exact


price & guarantees that price at which you wish to exit a
trade.

• Stop or Limit Order – Instructs the broker to either buy or sell


at a specific price level.

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Order Types- Orders to Open a New Trade

• Orders to Open a Trade


Using an order to open a new trade is a very useful risk management
tool. Your technical analysis of the market will identify levels where
you might want to enter a new buy or sell trade.
Rather than having to continually watch the market waiting for the
price to reach your entry level, you can leave resting orders above
and below the market and let the market come to you.

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Order Types- Guaranteed Stop Losses

• Guaranteed Stop Loss


This type of order is a great risk tool to use when you want to
absolutely guarantee the price you will exit your trade. In times of
high volatility, as we have now, using a guaranteed stop will give you
total clarity on the loss you could incur if the market moves against
you.
Guaranteed stop losses are not as flexible as a normal stop, you won’t
be able to leave your order as close to the current market price and,
as with any insurance contract, you will have to pay the broker a
premium, an extra spread charge, if your order is triggered.

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Order Types- Stop Loss

• Stop Loss
Whenever you consider a new trade you should think of three things,
the price you want to enter the market, the price to exit if the trade
goes well and is profitable and the price to exit if things do not go to
plan.
A stop loss is the level you want to exit the trade if the market moves
against you. Unlike a guaranteed stop loss, the price you set is not
always going to be the price you will receive. This is known as
slippage and we will come on to this later.
A normal stop loss can be left very close to the current market price
and so whilst there will always be a risk of slippage, there is more
flexibility than you will find with a guaranteed stop loss.

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Order Types- Limit or Take Profit Order

• Limit Orders, sometimes referred to as a Take Profit Order


You have decided on your entry level and left a resting order above
or below the market and you have also established a stop loss level
where you want to exit if things go wrong.
Now it is time to set your exit level for when the trade reaches your
target price and you want to realise the profit you have made.
Entering a limit, or take profit order, is a good discipline and as
important as your entry and stop loss orders.

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Market Gaps and Order Slippage

It is very important to understand that markets do not always move in


a uniform manner. During times of uncertainty and volatility it is quite
common for gaps to appear between prices.

For a trade to exist there must be a buyer and a seller who are willing
to trade at the same price. If there are only buyers wishing to trade
the market will have to move to the next price where sellers can be
found.

This is what is known as a market gap, if you have an order that


happens to be sitting in the gap, you will be subject to something that
is known as slippage. You order couldn’t be executed at your chosen
level and so it has been slipped to the next price where the market
can attract both buyers and sellers.

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Leverage- What is it?

Leverage is an important factor when trading the financial markets, it


is a very useful tool that means you only have to deposit a small
percentage of the total value of the trade.
But is important to understand what effect leverage can have on your
trading, yes, you might only need to deposit a relatively small amount
to place a trade but markets can move quickly and losses can be
amplified by the leverage you use.
Leverage of up to 200:1 (or 0.5%) is more than enough for any trader,
the slides later in this presentation will demonstrate what effect
leverage has on your trading and the capital you will need in your
account.

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Leverage- An Example

Placing a trade on the Wall Street 30 market, also known as the Dow
Jones 30, is one of the most popular for retail traders all around the
world.
The Wall Street 30 market closed on Friday at a price of around
23,800.
If you wanted to place a trade on this market without leverage, you
might be asked to deposit the full value of the trade.
So, a £5 a point trade would require £5 x 23,800 = £119,000
But a broker offering leverage of 200:1, or 0.5%, would require a
fraction of this amount to be deposited:
£5 x 23,800 x 0.5% = £595

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Leverage- How Each Regulator Differs

FCA (UK) – Maximum leverage of 30:1

ASIC (AUSTRALIA) – Maximum leverage of 30:1 (from the 29th March)

FSCA (SOUTH AFRICA)- Maximum leverage of 200:1

BFSB (BAHAMAS) – Maximum leverage of 200:1

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Leverage- How Each Regulator Differs –
What it means for you

We’ve seen an example of how leverage works, how much money


you need to have in your trading account to place a trade.
Where you choose to open your account, and the maximum leverage
you can receive, will affect the size of your deposit and also the trade
sizes you can place.
If you open your account under FCA regulation you would need to
deposit 6.66 times the amount of money to place the same trade
than if you opened your account under Bahamas regulation.

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How Each Regulator Differs – Where is
your money held?

I recommend the trading services of Core Spreads and their new


brand Trade Nation. I have known the people who work there for
many years and I trust them. They want to change the retail trading
sector for the better and their new brand, Trade Nation, is doing just
that.
When choosing where to open your account, consider where your
money will be held. Which bank are your funds being sent to? These
are the banks that Core and Trade Nation work with in each of their
licensed entities:
UK, Bahamas and South Africa – Barclays Bank PLC, London
Australia - Westpac

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What is Margin?

Margin is the difference between the funds held in your account and
the money loaned to you by a broker.

• When you trade, you’ll be trading on margin or what is


referred to as, ‘margin trading’.

• It means that you only need a small percentage of the total


value of the trade in your account, the rest of the amount is
‘borrowed’.

• As you only need a small amount in your account, margin


trading gives traders access to more markets that would
normally be out of reach for retail traders.

• To keep a trade open, you must have a minimum amount of


available funds in your account. This is known as a margin
requirement, and it’s a different amount for each market.

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How to prevent being closed out of a
trade for being under-capitalised.

Nobody likes losing money on a trade. After all, it means we’ve got
things wrong. But losing trades are a fact of life. Here are some top
tips:

• Don’t take unnecessary risks.

• Plan your trades in advance and put stop losses in place so


that you stay within your means.

• Monitor your account status and be aware of how the


markets are moving, you must ensure you always have
enough money in your account to support your open trades.

• If you can’t place a trade that stays within your trading rules,
walk away and wait for a better opportunity

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Initial Margin

The initial margin requirement is the MINIMUM amount of money you


must hold on your account to open a trade. It is generally a
percentage of the value of the trade. This means multiplying your
trade size, which is usually in $, £ or € per point, by the price of the
market you are trading by the margin rate that applies to this market.
Margin rates for each market can be found on the brokers trading
platform.

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Example: Index – Wall Street 30
(Dow Jones)

The quote to trade the Wall Street 30 market is 23800-23801

• You decide to buy $5 per point which you can do at 23801

This means that if the Wall Street 30 market goes up to 23802 then
you’ll be making $5 profit

• If the Wall Street 30 market moves to 23800, you would be


losing $5.

The initial margin requirement for the Wall Street 30 is 0.5%

• So, the initial margin requirement for this trade is $5 x 23801 x


0.5%= $595

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Example: Index – US500 (S&P500)

Let’s say the quote on the US 500 is 2915.00 – 2915.14

• You decide to buy $50 per point which you can do at 2915.14

• This means that if the US 500 goes up to 2916.14 then you’ll


be making $50 profit

The initial margin requirement percentage for the US 500 is 0.5%

• So, the initial margin requirement for this trade is $50 x


2915.14 x 0.5%= $728.78

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Example: Gold

You want to trade the Gold Market at $5 per 10 cent movement in the
price.
The initial margin for this market is 0.5%.
At the time you go to place your trade, the price for Gold stands at
$1684.
To work out the margin requirement, you need to do the following
calculation:
Trade Size x Price of the Market in tenths x Margin Rate
So:
$5 x 16840 x 0.5% = $421
This means that you need a minimum of $421 in your account to open
this trade.

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Example: Commodity - Crude Oil

Let’s say the broker’s quote on crude oil is 3150 – 3153

• You decide to buy $2 per point which you can do at 3153

This means that if the price of crude oil goes up to 3154, then you’ll
be making $2

The initial margin requirement percentage for crude oil is 1%

• So, the initial margin requirement for this trade is $2 x 3153 x


1% = $63.06
This is the minimum amount you must hold, not being used for any
other positions you may have, in your account.

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Example: Forex – EUR/USD

The broker’s quote on the EUR/USD is 10752.3 – 10752.9

• You decide to sell £2 per point which you can do at 10752.3


(this means you hope the Euro falls versus the US dollar).
• This means if the EURUSD price falls to 10751.3 you will be
making £2 profit

The initial margin requirement percentage for this market is 0.5%

• So, the initial margin requirement for this trade is £2 x 10752.3


x 0.5% = £107.52

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Example: US Stock Trade on Apple

• You decide that Apple stocks have been oversold and that it
is a good time to enter the market and to place a buy trade.

• The price of the market is $267.75 and you choose to buy $1


for each and every cent move in the price of the share.

• This means that if the price rises to $267.76 you will be


winning $1, conversely a move to $267.74 means you will be
losing $1.

The initial margin percentage for this market is 5%

• So, the initial margin requirement for this trade is $1 x 26775


(number of cents in the price) x 5% = $1338.75

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Example: UK Stock Trade on Barclays Bank

• Having studied the movement of Barclays Bank stock price


and read some negative research about future earnings you
place a sell trade in £50 per penny movement in the share
price.

• The price of the market is 97 pence.

• This means that if the price rises to 98p you will be losing £50
conversely a move to 96p means you will be winning £50.

The initial margin percentage for this market is 5%

• So, the initial margin requirement for this trade is £50 x 97


(number of pence in the price) x 5% = £242.50

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Variation Margin

Markets are constantly moving as buyers drive prices higher and


sellers push them lower.
Markets can move against you. When this happens, if all you have in
your account is the Initial Margin for a trade, your broker will ask you
to deposit additional funds, this is known as Variation Margin.
This is why it’s important to hold extra funds on your account, and to
use stop-losses to close positions if prices move against you.

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Example: Commodity – Crude Oil

So, you bought $2 per point of crude oil at 3153

• The initial margin requirement for this trade was $2 x 3153 x


1% = $63.06

Now, let’s say crude oil drops to 3103, that’s 50 points.

• You would have a running loss (in other words, you haven’t
REALISED the loss by closing the trade) of $100 (3153 – 3103 x
$2).

• If you just had $63.06 in your account as Initial Margin, then


you would be asked to top up your account by $100. This is
Variation Margin.

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Example: Index – US 500

Let’s assume you’ve bought $50 of the US 500 at 2915.14

• The initial margin requirement for this trade was $50 x 2915.14
x 0.5%= $728.78

Now, say the US 500 drops to 2895

• You would have a running loss (in other words, you haven’t
REALISED the loss by closing the trade) of $1007 (2915.14 –
2895 x $50).
If you just had $728.78 in your account as Initial Margin, then you
would be asked to top up your account by $278.22. This is Variation
Margin.

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The Market Circuit Breakers

In times of exceptionally high volatility in global financial markets not


only does it make it difficult to trade, but these large and volatile
moves trigger what is called a circuit breaker. This is when a market
falls, or rises, by a set percentage triggering a halt to trading.
Circuit breakers give market participants time to reassess the situation,
helps dampen volatility and bring some calm after sharp moves. They
are usually temporary, although trading can be halted for a whole
session if markets move significantly, or if a circuit breaker is hit
towards the end of a session.

A ‘limit down’ circuit breaker


‘Limit down’ is the maximum downward move for a market within a
given trading session.

A ‘limit up’ circuit breaker


‘Limit up’ is the maximum upward move for a market within a given
trading session.

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The New York Stock Exchange employs the following:

Level 1: The market falls or rises by 7% from its previous day’s


closing price
Action: Trading halted for 15 minutes

Level 2: The market falls or rises by 13% from its previous day’s
closing price
Action: Trading halted for 15 minutes

Level 3: The market falls or rises by 20% from its previous day’s
closing price
Action: Trading halted for the rest of the day

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How does it affect your trading?

• If a market is halted by a circuit breaker, you will not be able


to place any trades in that market until it begins trading
again.

• If you have a pending order in that market which is triggered


when the market reopens, it will be filled at the next available
price and may be subject to slippage.

• You will be unable to amend existing orders on a market


whilst the market is halted under these conditions.
Not all markets have circuit breakers, but all US stock indices do.

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Market Types- Rolling Cash v Futures

When selecting the market from the list in the trading platform you
may see a choice of a Rolling Cash/Rolling Spot market or a Futures
market.
The Rolling Cash/Spot markets are usually chosen by traders who
have a short-term view about where the market is heading. The
spreads (costs to trade) on the Rolling products are lower than the
Futures products but there are additional charges if you trade these
markets and hold a trade overnight. These are known as overnight
financing charges and we will cover these later.
Futures markets, whilst having wider spreads, are the market of choice
for those traders who are looking to take a longer-term view on the
direction of the market.

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Overnight Funding Charges

If you choose to trade on the Rolling markets with your broker, you
need to be aware that holding your trade over (rolling it) to the next
business day will incur an overnight funding charge.
The roll is done automatically by the broker if your trade remains
open at the close of their day’s trading.
The charge is calculated by using a formula that considers the value
of your trade, the cost to borrow money in the country where the
market is traded and an additional administration charge from your
broker.
If you are rolling your trade over a weekend, you will be charged 3x
the normal daily fee.
Overnight charges, whilst relatively small, can become a significant
cost to trade and so it is important to understand when these charges
will apply to your account and how they can affect your profitability.

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Market Dividends- Why Do They Affect
Me?

You will often hear when a company declares a dividend for its
shareholders and when the dividend is paid, the share is known as
having gone ‘ex-dividend’.
The price of the share is then altered by the amount of the dividend
that has been paid.
If the company paying the dividend is part of an Index, for example
Boeing is part of the Wall Street 30, a trade that is open on the Wall
Street index will also be affected by the dividend, the value of the
index will be adjusted accordingly.
If you have a trade open when a constituent of the index you are
trading pays a dividend you will see an adjustment on your account, a
debit if you have sold the market and a credit if you have bought the
market.
These dividends can be paid at any time and a weekly list of what is
expected can usually be found on the brokers website.

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Futures Trades – When do they Expire?

The difference between a trade on a Rolling market and a Futures


market is that Rolling trades will not close unless you place a trade to
close your position. There are no overnight funding charges to pay
when trading Futures.
A Futures trade will close automatically on a specific date and at a
price known as the Settlement Price.
The date of the market expiry is listed on the brokers trading platform
and can be found when you click the Market Information button.
It is important to know when your trade will expire as you will have
two options on this date, you can leave it to close at the Settlement
Price or you can ask your broker to roll your trade over into the next
Futures contract.

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Part Closing your Trade

There will be times when you only want to close part of your open
trade.
For example, you may have a $5 a point trade open in the Germany
30 market (DAX30) and decide that you would like to reduce your
exposure to this market.
You can do this by placing a trade in the opposite direction to the
initial trade in any amount up to $5. So, a part closing trade of $3 a
point would leave you with a $2 a point position.
Part closing a trade can be done by trading at the current market
price or you can leave one or multiple orders away from the market
and wait for the market to come to you.

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Trading Hours

Every market will have set times where the broker is able to accept
trades from you.
These opening and closing times will vary and, as with other specific
market information, it is important to know when you will be able to
trade.
This information can be found in the market information tab on the
trading platform.
There will be occasions where a market may appear to still be trading
but the broker is not able to accept trades from you. This is because
there are certain times of the day where an auction will take place on
the exchange where the market is priced yet no trading is possible.

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Choosing a Broker- The 5 Essentials

1. Make sure they are regulated.

2. Confirm your money be kept segregated from theirs and


in a Tier 1 Bank.

3. Are the spreads/charges fair and do they stay fair when


the markets are volatile?

4. Is the trading platform easy to use, does it meet your


requirements?

5. Can you speak to someone at the broker if things go


wrong or you need help?

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Why Do I Recommend Core Spreads and
Trade Nation?

1. They have the lowest FIXED spreads/charges of any


broker in the world.

2. When the markets become volatile, as they are right


now, they won’t increase their charges.

3. Consistently low charges result in better trading


decisions, more chance of success and no nasty
surprises.

4. Their trading platform and charting package is


simple to use.

5. They focus on speed and quality of execution and


are less worried about the whistles and bells found
on other platforms.

6. The have quality regulatory licences around the


world and bank with Barclays in the UK and
Westpac in Australia.

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Trade Nation – Why is the brand changing
from Core Spreads?

For the last year the team behind Core Spreads have been
working for on creating their new brand, Trade Nation, which
was launched late last year.

Trade Nation has the same great trading platform as Core


Spreads, the same teams in London, Sydney and
Johannesburg looking after customers and the same low
trading charges that offer the best value in the whole industry.

I’ve looked at lots of other brokers and Trade Nation’s


charges are consistently the lowest to be found.

Trade Nation was created to drive change in the trading


sector, change for the better, a more transparent and fairer
broker. I am sure that they will succeed in their quest which is
why I recommend you join them.

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Core Spreads to Trade Nation

You may have received an email from Core Spreads recently


inviting you to transfer your account from Core Spreads
Australia to Trade Nation.

The reason for the communication is that changes to leverage


in Australia will be made at the end of March, as we have seen
in earlier slides you will need to have, on average, 6 times the
amount of money in your account to place trades of the same
size.

Choosing to move your account to Trade Nation is a seamless


process and your money, currently held at Westpac Bank in
Australia, will continue to be held securely in segregated
accounts at Barclays Bank PLC, London.

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The Trading Platform

• The next slides show what you see when you log in and
launch the Trade Nation trading platform and how to place a
trade.

• Their platform automatically selects the most popularly traded


markets.

• But you can create your own watchlists with the markets you
want to trade and follow.

• You can search for markets, look at charts, see breaking news
and launch a ‘trade’ ticket.

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Platform Functionality

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How To Place A Trade – Step 1

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How To Place A Trade – Step 2

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How To Place A Trade – Step 3

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How To Place an Order – Step 1

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How To Place an Order – Step 2

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How To Place an Order – Step 3

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Opening an Account with Trade Nation

www.tradenation.com
200:1 Leverage Available

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Opening an Account with Core Spreads

www.corespreads.co.za
200:1 Leverage Available

www.corespreads.com.au
30:1 Leverage Available

www.corespreads.com
30:1 Leverage Available

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Risk Warning Notice – Trade Nation

This Notice is provided to you by Trade Nation and should be


read in conjunction with the Terms and Conditions. Before you
start trading with Trade Nation you must carefully consider
whether trading in derivatives is appropriate for you based on
your personal circumstances, financial objectives, financial needs
and trading experience. For many members of the public, these
transactions are not suitable: you should therefore consider
carefully whether they are suitable for you in the light of your
circumstances and financial resources.

Trade Nation offers Over-the-Counter (OTC) products such as


Spread Trades and Margin FX collectively referred to as ST
products on a variety of financial assets classes including indices,
FX, shares, cryptocurrencies and commodities. ST products are
speculative products which are not suitable for all investors. ST
products are leveraged investments and by investing in
them you are exposed to much greater risk of financial loss than
other types of conventional investments such as share trading.
You may incur a loss which is far greater than the amount you
invest. In deciding whether to trade in such instruments you
should be aware of the following points:

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Appropriateness
Prior to proceeding with the opening of an account for you, we
may be required to undertake an evaluation as to whether our
products are appropriate for you. If we believe they are not, we
shall warn you accordingly.

Counterparty risk
Trade Nation reduces financial exposure by entering into
corresponding trades with counterparties. There is a risk that the
counterparty defaults on its obligations to us which could impact
on our ability to meet our obligations to you. If we default on our
obligations, you may become an unsecured creditor in the event
of an administration or liquidation, and you will not have
recourse to the underlying assets in the event of our insolvency.

Leverage Risk
The high degree of “gearing” or “leverage” is a particular feature
of this type of transaction. This stems from the margining system
applicable to such trades that generally involves a deposit or
initial margin in terms of the overall contract value, so that a
relatively small movement in the underlying market
can have a disproportionately dramatic effect on your trade. If the
underlying market movement is in your favour, you may achieve a
profit position, but an equally small adverse market movement
can not only quickly result in the loss of your entire deposit but
may also expose you to a large additional loss unless you enter
into a limited liability contract with the firm. The nature of
ST Products means that a relatively small move in the price of the
underlying instrument to which your ST Product relates can cause

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an immediate and substantial loss to you, including a loss far
greater than the amount of your initial investment.

Order Risk
Orders, other than Guaranteed Stop orders, are not guaranteed so
reliance on an order is a risk. It is your responsibility to manage
orders. Any order which you have placed and have not cancelled
may be filled by us and therefore you may incur losses as a result
of that order.

Gapping Risk
Gapping refers to an occurrence whereby our quote moves from
one price to the next price, through an order level. This may be
because the underlying instrument to which the ST Product
relates has stopped trading and recommences trading at a price
below or above a stop loss order level or may trade in insufficient
size as represented by the size of your order, for Trade Nation to
have been reasonably able to place a trade in the underlying
instrument. When gapping occurs, orders are executed at our
quote based upon the first price that we are reasonably able to
obtain in the underlying instrument. Accordingly, where you have
an order you must understand the potential impact of gapping.

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Market Risk
The ST Products provided by Trade Nation are OTC products. This
means that they are not traded on a licensed financial market
such as an exchange. Therefore, by trading in OTC products with
us you will not have the benefit of some of the advantages of
trading on a licensed market, such as having a central clearing
house to guarantee our obligations to you.

Dealing Spread Risk


For all ST products we incorporate our fees in the spread. There
may be circumstances in which the spread that we charge you to
close a transaction maybe greater than the spread that we
charged you to open the transaction and vice-versa. In such a
scenario you may face greater costs in closing a position than
anticipated. Dealing spread may vary depending on trading
hours as listed in the Market Information Sheets and are subject
to change in times of volatile market conditions.

Operational Risk
Our ST Products are typically traded over the internet which
means that you are exposed to the operational risks associated
with online trading such as the reliability of your internet
connection, the stability of the trading platform and the reliability
of network connections and computer hardware. Such systems,
trading platform or hardware failure could prevent you from
implementing your desired trading strategy and could cause you
to suffer loss. In the event of connectivity problems, you can
contact us immediately to manage your account by telephone.

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Volatility Risk
Financial markets can be very volatile. Unpredictable events can
cause the market of an underlying instrument to move rapidly on
little to no trading activity. In such circumstances it may become
very difficult, if not impossible, to execute your orders according
to your instructions or at all, which could cause you to suffer loss.
In other circumstances there may be low trading volumes for the
underlying instrument to which the transaction relates and Trade
Nation, in accordance with the Terms and Conditions, we may
limit the size of transactions that we are able to provide, which
presents a risk to you fulfilling your desired trading strategy.

No advice
Trade Nation will not provide you with investment advice relating
to investments or possible transactions in investments or from
making investment recommendations of any kind. We may,
however, give factual market information or information, in
relation to a transaction about which you have enquired, as to
transaction procedures, potential risks involved and how those
risks may be minimised.

Tax implications
The tax treatment of ST Products and of any profits you make
from such trading may be affected by your personal
circumstances and can be subject to change. You should seek
further advice if necessary.

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Client Money
Trade Nation holds your money in segregated bank client
accounts in accordance with regulation.

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Risk Warning Notice – Core Spreads
Financial (South Africa)

Spread Trading is not suitable for all investors. Spread Trades are
leveraged products and carry a high level of risk. You do not own
or have any interest in the underlying asset. Core Spreads
Financial (Pty) Ltd (Registration Number 2019/229081/07) is a duly
appointed juristic representative of Trade Nation (Pty) Ltd
(Registration Number 2018/418755/07), which is an authorised
Financial Services Provider regulated by the Financial Sector
Conduct Authority (FSP No 49846). As such Core Spreads Financial
(Pty) Ltd renders financial services to clients on behalf of Trade
Nation (Pty) Ltd. Core Spreads Financial (Pty) Ltd is not a financial
adviser and all services are provided on an execution only basis.
The information on our website is for general informational
purposes and does not take into account your objectives, financial
situation or needs.
We recommend that you seek independent professional advice
and consider our Client Agreement and Risk Warning Notice, by
clicking here, before you enter into any transaction with us. The
information on this site is not directed at residents of the United
States or any particular country outside of South Africa and is not
intended for distribution to, or use by, any person in any country
or jurisdiction where such distribution or use would be contrary to
local law or regulation.

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Trade Nation Application Process

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How To Open an Account – Step 2

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How To Open an Account – Step 3

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How To Open an Account – Step 4

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How To Open an Account – Step 5

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How To Open an Account – Step 6

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How To Open an Account – Step 7

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How To Open an Account – Step 8

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How To Open an Account – Step 9

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How To Open an Account – Step 10

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How To Open an Account – Step 11

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How To Open an Account – Step 12

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Depositing Funds into Your Account

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Deposit with a Bank Transfer

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Deposit Funds with a Bank Transfer

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Deposit Funds with a Bank Transfer

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Deposit Funds with a Bank Transfer

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Deposit Funds with a Card

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Deposit Funds with a Card

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Deposit Funds with a Card

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Documents you might be asked to provide

To support your application for an account, you may receive an email


from Trade Nation requesting some additional information to verify
your identity and address.
The documents required for you application to be approved will vary
depending on which country you reside in.
The list of acceptable proof of identity documents are:

• Passport photograph page


• Driver's licence
• National identity card
• Other Government issued photo ID

The list of acceptable proof of address documents are:

• Utility bill (this cannot be a mobile phone bill)


• Council/Municipality Statement
• Other documentary proof of address issued by a public body
• Bank or credit card statement

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Restricted Countries

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Start Here

1. Create a Trading Account & Deposit Funds

2. Learn the Platform

3. Get your 1st Trade on as quickly as possible

4. Evaluate Trades & Start a Journal

5. Focus on the Process not on making money at this stage

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Our Requirements

1. Trading Capital £1,000 - £2,000 Minimum

2. Laptop with Internet Connection

3. Trading Platform with Simple Charts

4. Simple Plan + Simple Strategies

5. Process for Trade, Risk and Emotional Management

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Remember…

1. Do not overcomplicate this

2. Understand this is a journey

3. There will be wins and losses – good days and bad days

4. Keep your losses small and manage risk as well as emotions

5. Trade your own trades and ignore everybody else

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Notes

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Thank You

This email is for Testimonials ONLY please.

(For Video Testimonials you may find it easier to use www.wetransfer.com)

[email protected]

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