How much capital is suggested to start with
Intelledgence?
Intelledgence offers an excellent entry solution for investors with very
small and very large capital bases looking to enter the market actively
for the first time. Intelledgence has long hold periods and large average
profit per trade statistics. The average profit per trade is 39% and the
average hold period is 18.5 months.
Brokerage has a small effect on performance due to the passive nature
of Intelledgence.
While Intelledgence users may expect 5 - 9 compounded percentage points
per annum greater than the ALL-ORDS over a rolling 5 year period, we would
suggest a minimum capital injection of $20,000.
Why Intelledgence?
Intelledgence works for the following reasons:

it has
a researched statistical edge with a positive mathematical expectation.

it has
a strict exit mechanism and allows long-term profit trades to run.

it focuses
on large cap ASX200 stocks and fundamentally sound stocks that continue
to pay rising dividends.
What products do you recommend for a novice with very little trading
and computer experience?
Novices should consider either Intelledgence or SPA3.
What do you recommend for an experienced trader?
Traders with experience should consider either SPA3 or SPA3CFD. SPA3CFD
is for investors looking for leveraged SPA3 type returns. With the possibility
of greater returns also comes increased risk.
Does Intelledgence prescribe to technical or fundamental analysis?
Intelledgence uses a combination of both fundamental and technical analysis.
The fundamental analysis is used to rate a company’s financial strength.
Stocks are then filtered into Gold, Silver, Bronze or Qualifier categories
and then a position size is granted to the stock based on it’s financial
health.
Once the fundamental information has been accounted for, the Intelledgence
methodology uses technical analysis to trigger the entry and exit signals.
Through our research and trading experience we have found that the mechanical
trading of our methodologies using objective, clinical and back-tested
technical analysis signals provides consistent returns that are considerably
greater than the market indices and managed funds.
What products do you recommend for those only interested in stocks
with strong fundamentals?
Intelledgence is an ideal solution for the investor who places emphasis
on fundamentals.
Intelledgence allows the user to trade stocks across the ASX200 plus another
130 odd fundamentally correct stocks. These large market cap stocks are
highly liquid and are suited for both small and large portfolios.
Stocks are filtered into categories based on their financial strength
(Gold, Silver Bronze or Qualifier). The stronger the financial strength
the larger the Intelledgence position size.
How do I choose between the Long-term and Medium-term solutions?
The decision whether to acquire Intelledgence or SPA3 should be based
on more factors than just potential returns. Medium term trading with SPA3 will
demand more time than the more passive share investment with Intelledgence.
You may also find SPA3 more psychologically challenging.
SPA3 should provide better returns than Intelledgence due to the effect
of compounding.
However, SPA3 will require 10-15 minutes a day of effort, whereas, Intelledgence
will require between 30 minutes to an hour a month to manage an ongoing
portfolio.
SPA3 suits portfolios greater than $80,000 (comes into its own when >$100,000)
however Intelledgence can be used for portfolios from as little as $20,000
to $10 million.
If I stop temporarily are there any costs to start up again?
For Intelledgence an annual subscription fee of $990 is paid up front.
What broker do you recommend for Intelledgence?
Share Wealth Systems has an affiliation with Commodity Broking Services for the
Intelledgence but simply you can choose which ever broker you like
The general rule is to find a broker that allows you to execute quickly
and effectively at the lowest possible cost. In implementing the Intelledgence
researched edge you will be opening and closing trades on average every 18.5 months
so the activity is not as frequent as SPA3. We would suggest that still
find an online broker due as the savings are significant compared to a
full service broker.
Is there any subjectivity involved in Intelledgence or is it entirely
objective?
Totally objective, we wouldn't have it any other way! Subjective classical
technical analysis, announcements, news and reports are ignored. These
are termed as 'noise' and don't influence our objective, structured and
'robot like' actions.
The single common message from authors that have had extensive trading
experience is that "to be successful in the markets you must achieve
objectivity and consistency." You will find this message in books
by Mark Douglas, Martin Pring, John Murphy, Stan Weinstein, Tom De Mark,
Jack Schwager (and the majority of his Market Wizards), Larry Williams,
Larry Conners, Welles Wilders, Joe Krutsinger, Jake Bernstein, Jeff Cooper,
etc. Our methodologies help you achieve objectivity and consistency.
Why are investing solutions like Intelledgence so important?
Putting the Intelledgence methodology aside, investing with a decision
support system that emanates from the market removes your discretion,
gut feel and hunches. Rather you invest with a set of rigorous rules and
processes that are researched to give you an edge.
The key is to have a Trading System with a positive expectancy and integrated
Risk Management, Money and Portfolio Management for that Trading System.
This is precisely what Intelledgence offers.
To be successful over the long haul you must either design or acquire
a methodology for the term you are trading. The reality is that developing
a working methodology is not an easy task. Most traders do not have a
solution and those that think they do, do not have one that works - one
of the main reasons why most people fail to succeed in the market.
Developing a methodology requires unique qualities. Assuming that one
did have the computer programming experience, trading background, tools
and time to research, test and develop a methodology (a task only achievable
by a very small number of people), the reality is that the chances of
a successful outcome are low.
Why is it so important to put capital at risk and complete trades?
The only way to make money in the market is to put capital at risk in
the market. Blindly putting money into the market is NOT a solution. Sound
entry, exit, risk and money management rules MUST be in place and they
must be followed. It would be very difficult to grow your capital base
to meet your financial goals and objectives by leaving it in the bank.
Spectators don't achieve their financial objectives. 100% of trades that
you do not take will NOT make you a profit. You have to be on the field
of play and be prepared to get tackled. Wanting to kick goals but not
wanting to get tackled is not an option that is available in life - being
in the market but not having a loss trade is also not a choice that is
available in life. Loss trades put profit trades into context. Without
losing there would not be a definition for winning - winning would have
no context or perspective.
In tough times many active investors lick their wounds from giving back
some of their profits to the market or having been put into the red. Some
will withdraw temporarily to become spectators, some will sell everything
and head for the hills to join the ranks of the permanent spectators and
others will continue to learn about the markets and risk capital to grow
their capital. It is your choice.
Remember that the price action on the charts will tell you what is happening.
Analyse it objectively and do not filter it with noise, your hopes and
expectations or with your fears.
Let the markets do what they will do without
worrying about it - just follow your Plan to deal with the situation.
What if I go on a holiday and have open Intelledgence positions?
Intelledgence encompasses a trading system which gives technical signals
determined by share price activity. If you go on a holiday with open Intelledgence
positions then there is no way of knowing beforehand whether or not your
portfolio will require action while you are away.
The only surest way to be covered while you go on a holiday are to sell
all your positions before you leave or take a laptop with you.
Some customers set automatic stop loss triggers with their brokers to
protect themselves and keep some positions open. Whatever you decide just
make sure that if you leave positions open that you are prepared for the
unexpected as anything can happen while you are away.
It should be said that these issues need to be addressed by anyone active
in the market regardless of their approach to trading.