Bellmont & Think Financial Order Management Service

A guide for the private trader – explanatory document

Overview

Many people enter the financial markets with confidence and conviction that trading is a relatively straightforward process. They may have read about the success of someone who now spends a few hours a week trading for a living or they may have experienced a friend or family member striking it lucky with a small mining company. So they open a trading account, buy the stock they received a tip on and wait for their account to grow…

In reality it is never quite that easy. For anyone who has traded in the markets they will understand that hard work, discipline, and time are involved in becoming a successful trader.

Bellmont Securities and Think Financial have teamed up to help Think Financial members along the path to becoming successful traders by providing an order management service. The service will be a unique way for Think Financial members to continue their education on a practical level while at the same time allowing those people who are time poor to still be involved in the market.

The Directors of Think Financial, Anthony Kiernan and Peter Benson who are themselves professional traders, will be using their years of experience within the financial markets to analyse trade setup’s and risk management for the service, while Bellmont will be sending the recommendation, providing the execution, trade management, and support..

How the service works

Once a client has registered for the service, the trade setup will be sent directly to the client via SMS & email from Bellmont Securities. The client then has the option to give approval for the trade via SMS, telephone or email.  Once confirmation has been received the trade is executed by Bellmont Securities, into the ASX via the clients’ Macquarie Prime account. All trailing stops, hedge positions, and targets are then monitored by Bellmont as per trade recommendation, giving you peace of mind when you’re not in front of you’re screen. Bellmont Securities and Think Financial then manage the trades and contact the client if changes are required.

If additional clarification is required at any point, a dedicated Bellmont Adviser thoroughly versed in the trading strategy will always be on hand to provide assistance.

A minimum starting account balance of $15,000 exists. Management and execution of the trading strategy incurs brokerage charges of $50 minimum, or 0.50% of the transaction value (which includes GST). The position size is nominated by the client and is specified on the agreement form.

Risks

Market Risk – The share market is inherently volatile, and share prices may be subject to substantial and at times prolonged declines. Whilst the strategy we employ involves a systematic process of risk minimisation and hedging, no guarantees can be given. Actual fill prices for entries, exits and stop loss orders cannot be guaranteed, and will be subject to prevailing market liquidity (gapping & slippage may occur).

Strategy Risk – Nothing in the market is free and all trading strategies involve a level of risk. The Order Management Service will be working around the risk parameters of 2.5% risk per trade with a maximum of 10% risk on the trading account. The service will be using a range of risk management techniques to ensure these risk parameters are maintained, but no guarantees can be provided.

Stock Specific Risk – Each individual company listed on the ASX will be susceptible to individual stock specific risk. While the Order Management Service will be managing the risk parameters of the trade there is still an understanding that each individual stock is unique and poses its own unique risk.

Leverage Risk – Leverage can increase returns however it can also magnify losses. the decision to use leverage is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please refer to the Macquarie Prime PDS for further information.

Fees

Brokerage charged on the execution of any trades will be set at $50 minimum, or 0.50% of the trade value (whichever is greater) incl GST. We may also receive trailing fees on any interest earned or charged on the account. There are no additional charges for the trade and trade management above this brokerage fee and interest fees.

The Next Step

To be a part of the service you must sign a copy of the Order Management Service Agreement. Please contact Bellmont Securities – 1300 368 295 or click here start the process.