Financial independence as Christmas present

Financial independence as Christmas present

Titel Seite

Introduction of the Author

Introduction of Schmitt Trading Ltd

Purpose of this book

The matching Christmas present

Example 3

Why a trading account?

Why Schmitti?

Introduction of the individual robots

Introduction of Schmitti1

Introduction of Schmitti2

Introduction of Schmitti3

Introduction of Schmitti4

Presentation Colorchanger

Presentation of DAXCCH4

Introduction of GOLDCCH4

Introduction of EURUSDCCH4

Introduction of GBPUSDCCH4

Introduction of EUBUNDCCH1

Introduction of DOWCCM5

Introduction of SP500CCD1

Introduction of EU50CCD1

Drawdown phase

Position size

With the stock market savings plan to success

Open a trading account

Rent a robot

Monthly basic income

How did we test

Introduction Stock Market Robot System

Stock Market Robot System 1.0

Stock Market Robot System 2

Stock Market Robot System 3.0

Stock Market Robot System 4.0

Stock Market Robot System 5.0

Stock Market Robot System 6.0

Stock Market Robot System 7.0

Stock Market Robot System 8.0

Performance Stock Market Robot System 8.0

Performance Stock Market Robot System 9.0

Performance Stock Market Robot System 10.0

Performance Stock Market Robot System 11.0

Performance Stock Market Robot System 12.0

Stock market basics

Money market account

Stock exchange

Exchange

Stock market

Stockbroker

Broker-dealer

Stock trader

Day trading

Trading strategy

Contrarian investing

Algorithmic trading

Glossary

Trading account

Summary

Step 6

The work including all its parts is protected by copyright. Any use is prohibited without the consent of the publisher and the author. This applies in particular to electronic or other duplication, translation, distribution and public disclosure.

Bibliographic information of the German National Library: Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; Detailed bibliographic data are available on the Internet at http://dnb.d-nb.de.

Imprint

Text: © 2019 Copyright by Marc Redwitz

Translation:© 2019 by Schmitt Publishing

Cover:© Copyright by Schmitt Trading Ltd

Publisher:Schmitt Trading Ltd

E-Mail: info@schmitt-trading.com

Website: www.schmitt-trading.com

Print:epubli Berlin, Germany

Introduction of the Author

My name is Marc Redwitz, I was born 17. March 1979 in Konstanz, Germany. I was raised at Lake Constance in the very south near the Swiss border and lived in Erfurt, Thuringia for quite a while.

I have been dealing with the stock exchange since 2006 and have been trading as a part-time job since 2007. Since October 2018, I have been developing automatic trading systems which I rent or sell to customers via the company Schmitt Trading Ltd.

Background

Since mid 2006, I have been interested in investment shares as a means of saving and I started buying investment funds on a regular basis.

In February 2007, I felt that the continued bull market may come to an end and I sold all investment shares with a profit. The first mini crash on the stock market came 27.02.2007 - exactly one week after I had sold everything.

Meanwhile I had opened my first trading account with CMC markets, ordered a CFD newsletter as a blueprint and started trading directly at the stock exchange.

I experienced the mini crash of 27.02.2007 on my second day at the stock exchange and was short with 20 CFDs on the German DAX. In this way, I could have doubled my capital from 1000 Euros to 2000 Euros within 8 hours if I had closed the positions in the evening.

The next morning, I woke up with my first margin call and the positions were closed via stop and with a loss.

I continued trading without any concept and was liquidated on 26.04.2007. The year 2007 ended with a net loss of 1000 Euros.

At the beginning of 2008, I felt that the big crash may start now. Consequently, I sold 1 DAX CFD with GCI Trading at a trading account capital of 28.55 Euros. The crash started and I closed the position with 230 points or 1150 Euros profit. If I had held the position until October, I would have made a profit of 20,000 Euros. If I had invested 1000 Euros instead of 28.55 Euros and sold 10 CFDs, I would have won 200,000 Euros in 2008. As a result, there was only a lot of buying and selling, overtrading and a net loss of 1000 Euros.

During new year's Eve 2008/2009 I was more than ever determined to become a professional CFD trader and trade my way to financial freedom.

Introduction of Schmitt Trading Ltd

Schmitt Trading Ltd is an international software company and develops trading robots.

These trading robots are programmed as specified by the customer, tested and delivered.

Any changes are possible any time and are calculated as inexpensive update.

From mid 2019, it is also possible to rent the trading robots developed by Schmitt Trading Ltd.

Please contact us by e-mail in order to ask for details, prices and conditions.

We are looking forward to get to know you!

Purpose of this book

With the present book, I would like to explain to you how you can earn money on the stock market without any prior knowledge and without a lot of time.

As described in my CV, it took me over 10 years to acquire the basics of successful trading.

The goal for me was never to generate a little more return than on the money market account. I wanted to achieve financial independence right from the start and then live my life in freedom because I no longer have to work.

You can go the same way - we call it the path of pain because of hurting losses - and then have at least 6000 hours of active trading on the stock market.

In addition, there are psychological problems such as dealing with pressure, false expectations, high losses, discomfort, arrogance, fatalism and repeated failure.

You will make many mistakes and pay dearly.

But now the good news: You can save yourself all this, if you immediately turn to the automated stock market trading.

That's why I advise you to read this book carefully, to understand the context, and then take your chance by acting!

In this sense: Enjoy reading! I wish you a successful future in financial independence!

The matching Christmas present

Every year the same question comes up: what should I give for Christmas? Or: what do I want?

If you feel like me and many other people, then I long for independence, especially financial independence.

If, like many others, you are stuck in a hamster wheel and everything is too much for you, then just wish yourself financial freedom at Christmas.

Imagine you could have a certain amount at your disposal every month and you could work less or stop working!

Schmitt Trading Ltd rents trading robots to investors who want to achieve high returns on a purely passive investment.

On the following pages, I will present all robots and some different robot combinations.

Choose the combination you like best and give it away for Christmas or have it given to you for Christmas.

Your financial independence is closer than you think!

Please take a close look at the following graphics and statistics. If you had given yourself a present of 2000 € last year at Christmas and started with a 50% yield robot, you would be 1000 € richer now.

I assume that the robots will make profits again next year. I want to encourage you to design your future on your own with the following examples.

You can interpret the table with the months as a 2-weekly account statement and the graph as a yield curve for 2019.

Example 1

Broker ActivTrades, Start capital 4000 Euro,

Strategy: SMRS 2.01

Example 2

Broker XTB, Start capital 500 €

Strategy SMRS 1.03

Example 3

Broker OctaFX, Start capital 100 €

Strategy SMRS 1.02

Why did noone tell me that...?

- ...I don't receive as much pension as stated on my annual pension notice.

- ...I must (fully) pay tax on my pension

- ...I have to deduct health insurance contributions from my pension.

- ...in the event of a divorce, I may have to surrender pension points

- ...the maximum pension is capped at 3000 €

- ...the average 2019 pension for men is 1095 € (West Germany) and 1198 € (East Germany) and for women 622 € (West) and 928 € (East), respectively

- ...the inflation rate for the cost of living is rather 10% instead of 2% per year

- ...I am acutely threatened by poverty in my old age or cannot maintain my standard of living

- ...there is a gap between my last salary and the pension

- ...my wage/salary is not only intended for consumption, but also for building my private retirement plan

- ...my current account does not yield any interest

- ...my savings account does not yield a return

- ...my money market account bears so little interest that it is not even enough to compensate inflation

- ...government bonds are not safe investments because they are subject to price fluctuations

- ...the price losses for individual stocks can amount to up to 100 %

- ...classic ETFs only buy shares, but do not include a short strategy

- ...there are 25-year sideways phases on the stock market, i.e. no long-term price increases are possible.

- ...with the right trading strategy it is possible to earn money even in sideways phases or falling markets

I tell you now and explain to you later in this book how you can generate a decent return through automated stock exchange trading in any market situation.

I expect a huge stock market crash and then to go into a long sideways phase. Should this scenario occur, none of the classic investment strategies will help to protect your assets and build up capital for the twilight years.

Why a trading account?

As I write these lines (September 2019), interest rates in the euro area remain at historically low levels.

A current research of the offered interest rates on overnight money accounts results in 0.5-0.9 % p.a. at new opening.

This means that an investment of 1000 € only yields a maximum of 10 € interest per year.

Nobody can live from that or develop a fortune.

Other financial analysts advise blind investing in stocks or ETFs that contain as many different stocks as possible.

I take a critical view of this advice, as investing in shares always means only buying.

As a trader, I can only emphasize again and again how important it will be in the coming period of high volatility to be able to execute in both directions - buying and selling.

This can only be done through a portfolio of short ETFs or a trading account.

Although (almost) no interest is paid on the savings account, the deposited amount remains relatively securely available through the deposit guarantee. Interest is only paid on the overnight account at longer intervals (monthly, quarterly or annually), which is why the account balance always remains approximately the same.

For the trading account, the deposit guarantee applies in the same way, i.e. the paid-in capital is relatively secure.

The main difference to the savings account is that all kinds of securities are traded on the trading account. These securities as well as currencies or precious metals are subject to the so-called price formation, i.e. their value is permanently redefined by supply and demand. The price of each individual financial product is therefore subject to constant fluctuations. Investing in such financial products causes daily fluctuations in the trading account balance — both positive and negative.

The challenge for classic savers is therefore to get involved in the stock market adventure and to tolerate certain fluctuations in the trading account.

This requires some practice and a lot of patience, but it usually pays off with high returns!

I fear that the Brexit — Britain's withdrawal from the EU — will make it more difficult to open a trading account. My guess is that the EU will further tighten regulation on financial products, as Britain's positive influence on free markets vanishes.

Furthermore, I suspect that the UK will reduce regulation for financial products very far in order to further strengthen its financial center in London. It may well happen that EU citizens will no longer be able to open trading accounts in Britain in the future, as this is already the case with US citizens.