The Black Box That Changed My Life

The year was 2003.

We were stitting at 180 Degrees restaurant in South Africa.

All of a sudden, a tall man approached us holding a black box.

Who would have thought that this black box would change my life forever.

Here’s what he showed me.

What’s inside the box?

He sat down at the table and told me that he has something that could make me a very decent income.

Obviously, this sparked my curiosity and as a 16 year old naive kid – I told him to show me…

Within the next 10 seconds I was not only uninterested but I was also extremely sceptical.

He opened up his computer, popped in a CD and the next thing I saw was a financial chart of some company.

As I was about to turn him away, he asked me a very simple question.

“Which way is this particular chart moving?”

I said ‘up’.

He then asked, “Which way is this chart more likely to go?”

At first I thought, well it’s going up for a reason so I once again said,

“Up”.

He then showed me the next couple of bars, which continued to head up which he then mentioned, 

“Do you know, if you bought this stock here and sold it in four days you could have banked an income?

I was shocked… Coming from a background from where I thought I was going to make an income being a famous actor – my new love for this hobby was born.

Without any doubt, I bought this box, which at the time was called ‘London School Of Investments’ for R15,000 and I went straight hom to open it up and get started. 

Now I am sure, you’re thinking that the man was not a trader but a very clever salesman who got me into buying this product.

I honestly don’t care… The quality of life, income and passion this man introduced to me has surpassed any of my wildest dreams for life.

What was R500,000 back then – today is free

I’m sorry to burst your bubble, but I don’t plan to sell you anything like that man did…

You see, the evolution of what was available to bank a consistent income from the markets over the years have changed… For the better.

In 2001: There were softwares with live markets to profit from for R500,000.

After 2003: We had 24 hour delayed trading software just like the Black Box for R15,000.

In 2005: Sharenet.co.za had the amazing Amibroker and MetaStock softwares with charting softwares with only 15 minute delays for R7,000 per year

In 2007: There were online platforms with 15 minute delays (mostly from the banks) where you could trade the markets for just R70 per month.

From 2011 – current: There are a high number of live trading online softwares where you can trade for FREE such as, Oanda.com, GT247, BlackStone Futures and even ProTrader…

And I must say, the technology available to trade today is a million times better than the software that was sold for R500,000 or even R15,000.

This is the best time to get into the markets, learn to trade and chage your life for the better just like trading did to me.

If you’re willing to take your first step to introduce this forever income life-style into your life, for my MATI Traders only I am going to give you the first lesson of my comprehensive and complete MATI Trader System Programme – FREE.

Click here to watch…

5 Laws Of Trading Success

E=MC²

Everything you need to know about the Universe, can be condensed into this tiny equation.

What if there was a formula that unlocked the laws of trading the markets?

I believe, there is…

I call them the 5 Laws To Trading Success…

1. Markets 

You’ll need to be able to find and trade the best markets, at anytime and anywhere in the world with CFDs or through Spread Trading.

2. Method

You’ll need to create and adopt proven, mechanical and consistently profitable trading strategies with a few entry and exit rules.

3. Money 

You’ll need to learn how to use essential money management rules in order to boost your winners, cut your losses and never blow your trading account.

4. Mind

You’ll need to be able to improve your self-confidence and develop a successful trading mindset, in order to trade effortlessly with little worry and with less stress.

5. Miscellaneous

You’ll need to adopt extra tips and tricks in order to boost your win rate, cut your trading holding time and preserve your portfolio.

Once you incorporate all five equally important elements – around your personality, lifestyle and risk appetite – you’ll be able to create a timeless and profitable trading plan for the rest of your trading career.

Make sure you watch the full video where I go into a lot more detail about the five laws of trading success…

Trade well, 

Timon Rossolimos

Bank Your Monthly Income Trading Tool

Dear MATI Trader,

In the previous lesson, we covered the one formula you need to achieve a certain monthly income.

In this lesson, I’ve prepared a special webinar at one of my favourite Greek bars in Athens called Balux Cafe: Sea Side with the downloadable calculator you can use, to achieve your desired monthly income.

Click here to watch:

Once you’ve downloaded the tool, you’ll notice there are three sets of colour cells.

Once you’ve downloaded the tool, you’ll notice there are three sets of colour cells.
Dark Blue Cells:

These are the 5 variables you’ll need to fill in including:

1. Money you expect to make a month.
2. GAIN percentage per winning trade.
3. LOSS percentage per losing trade.
4. Expected no. of WINNING trades a month.
5. Expected no. of LOSING trades a month.

Grey Cells – Calculate for you:

1. GAIN per winning trade.
2. LOSS per losing trade
3. Monthly GAIN
4. Monthly LOSS
5. Net monthly GAIN/LOSS

Yellow Cell – Calculate for you:

1. This is the amount of money you’ll need to have in your account to achieve you’re desired monthly income

Whether you want to make R5,000 a or R60,000 a month, you now that the tool to show you what’s needed to make it happen.

► Download: Bank Your Monthly Income Tool

Trade well,

Timon Rossolimos

Founder, MATI Trader

My Interview With Multi-Millionaire US Trader Peter L Brandt

 I have an exciting surprise that I think you will enjoy.

In 2013, I came across world-renown trader, author and owner Peter L. Brandt.

Over the next couple of days we had some really awesome chats about trading. In fact, I’ve managed to collate some of these timeless lessons he shared with me which I think will bring extra insight into your trading.

So when you’re ready, click here to download the interview 

Trade well...

Timon Rossolimos

Founder, MATI Trader

Pros And Cons With Trading

Transparency is everything with trading.

The good and the bad.

Here at MATI Trader, we want to expose you to the realities of trading.

What better way than to start with the PROS and CONS of trading.

Derivative Trading – ADVANTAGES

Advantage 1:

Minimal costs

Whenever you take a derivative trade, remember you’re only buying a contract and making a bet on the direction of the underlying market, rather than owning anything physical.

This means, you won’t have to worry about paying high brokerage and other trading costs like:

• STT (Securities Transfer Tax)
• Stamp duty
• Settlement and clearing fees
• Investor Protection Levy
• VAT
• STRATE

Advantage 2:

Profit from up or down markets

You can make a profit by buying low (going long) and selling at a higher price. Or by selling (going short) and buying the borrowed shares at a lower price for a profit.

Advantage 3:

Get paid dividends

When you buy a derivative of the underlying share, which pays dividends, you’ll be entitled to the full amount when you buy the market.

Advantage 4:

Instant access to world markets

Your broker will most likely offer you a large range of markets from local to international shares, commodities, currencies or indices, the world is virtually your trading oyster.

Derivative Trading – DISADVANTAGES

Disadvantage 1:

Gearing – Magnified losses

Gearing unfortunately is a double-edged sword. If the trade goes against you, you could wind up losing more money than what you deposited.

Disadvantage 2:

Commitment

Trading is an active business. You’ll need to commit more time to your trades than you would with investing.

Disadvantage 3:

No shareholder privileges

When trading a derivative, you won’t be able to vote, attend AGMs or have any say in helping with the underlying companies.

Disadvantage 4:

Pay dividends when you’re short

If you sell (go short) a trading derivative, with the underlying share which pays dividends, you’ll then have to pay the portion of the dividend instead.

Trade well...

Timon Rossolimos

Founder, MATI Trader

PS: Have any more pros or cons with trading, post them in our Facebook group.

The most accurate trading indicator predicts an 11.8% rally on the JSE!

Today I'm going to show you how one scarily accurate indicator, predicts an all-time high rally ahead for the JSE.

And if you play things right, you can end up making a very hefty profit. 

And please don't be concerned about the technical terms. By he end of this newsletter, I'm going to make sure you understand everything.

Now, let's see why I expect the JSE-ALSH to go up 11.80% to an all time high.


The RSI indicator tells you which direction the market is more likely to go next

To put it simply.

The RSI, or the Relative Strength Index, is a technical indicator that looks like a squiggly line.

Basically, this line will tell you when a market is over-priced (overbought) or underpriced (undervalued).

The RSI is a closed indicator which ranges from 0 to 100. This means that you'll see the squiggly line jumping up and down between this range. You'll see why this is important in just a minute.

Ok, so there are three levels on the RSI I want you to remember.

•          70
•          50
•          30

When the RSI squiggly line hits the 70 mark, it means that the price of the market is considered overpriced or overvalued.

When the RSI line touches the 50 mark, it means that the index is fairly priced. This is where the RSI normally oscillates around.

And when the RSI line goes on or below the 30 level, we say that the price of the instrument is undervalued  or "underpriced".

This is all going to make sense in a minute.

To help explain this better, let's take a look at the JSE-ALSH  with the RSI at the bottom of the chart.

The three crucial levels you need with the RSI 

In the above JSE-ALSH chart, you’ll see the three levels indicated in Red(30), Blue (50) and Green (70).
 
The RSI is telling us that the JSE-ALSH is ready to rally to an all-time high from here!



What you’re seeing is the JSE-ALSH chart and below it is the RSI indicator.

From May 2015 untill August 2015, we’ve seen the JSE-ALSH make lower lows. We’ve seen it drop from 51,000 down to 49,612 down to 46,530.

But now compare it to the RSI.

The first low of the RSI went to 27. The second RSI level touched 30 on the dot. And the final RSI went to 29.

This means that, the RSI has been touching, more or less, the same level on the low, while the ALSI has been making lower lows.

This means there is a bullish divergence between what the JSE is doing and how the RSI is moving.

So what does that mean?

It means that the RSI is showing that there is upside momentum in the making, which could send the JSE-ALSH up from here.

Next let’s look at what the RSI has been doing in terms of highs.

The RSI is ready to break out of the downside and rally once again

 

At the moment, you need to keep your eye on the 50 level mark on the RSI.

Since, May 2015, we’ve seen the RSI make lower highs. 

Granted.

But look where the RSI is at the moment? It’s at 47.12 which is around the 50 level mark.

Now just to remind you… The 50 level mark is where the price is fair valued generally.

But here’s the thing. The RSI has been showing a bullish divergence which means that it’s favouring the momentum to the upside.

And just like skating on thin ice, leads it to a break eventually. With the RSI, the same thing applies to the resistance (purple line) on the RSI. It leads to a break out as well.

The more times the RSI touches the purple line, the weaker it becomes.  

And so, it looks like the RSI is ready to break to the upside, above the 50 level.

Once it breaks, the JSE will follow suit and will go to the first target at 52,000.

If the JSE breaks above the 52,000, then it’s next pit-stop could take the JSE-ALSH to all-time highs at 55,321.

Always remember,

“Wisdom yields Wealth”

 

Timon Rossolimos

Senior Editor:  Trading Tips 
Head Analyst: Red Hot Storm Trader
Author:          94 Top Trading Lessons of All Time 

PS: Finally, part 3 of the "Eurozone Debt Crisis: The next stock market crash is available...
Enjoy watching the final part, by clicking on the play button below