The Help section is designed to provide a clear and concise outline of MDS Financial – Research and the components within the application.

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Overview

The help section is designed to provide a clear and concise outline of MDS Financial – Research and the components within the application. You will find information on reading and interpreting the recommendations, tracking our results through the portfolio section and understanding the technical and fundamental analysis that we under take.

Delivery of the report

The report is updated three times a day and an email is sent direct to your inbox notifying you of the updated content. This email will carry a link to the login page which prompts you for your username and password. These login details were emailed to you when you subscribed to the report.

The reports are produced throughout the day as follows:

MDS Morning Wrap - MDS Radio 9.45am
Head of Research, Michael Hevern takes a technical look at overnight action in markets around the word including global indices, commodities and stocks that may impact the Australian market that day.

Morning Report: 9.30-10.00am
The morning report including the overnight commentary from markets around the world provides coverage of the likely events that could impact the Australian market for the day.

Share Recommendations
Share recommendations are released before market open. We endeavor to provide the share recommendation(s) by 9:50am, however this may vary due to market conditions. Additional New recommendations may appear in the recommendations tab through out the day and we will notify subscribers with updates. To view the recommendations in full, click on the name or ticker code in the recommendation panel.

Intra-day
CFD recommendations are released at varying times throughout the day. We endeavor to provide the recommendation by 11:30am, however this may vary due to market conditions. For users of our CFD recommendations you have the added benefit of receiving SMS notification of any updates to the reports should you provide the necessary details when setting up your account. To activate this option please contact the CFD Trading Desk directly on 1300 65 90 90.

Afternoon Report   3.15pm - 3.30pm  
The afternoon report covers the major events that are influencing the market and outlines the recommendations that have met our entry criteria. As most share recommendations are designed to enter at the end of day or on the open the following day, this report will provide a clear outline of we're trading and why. It also outlines stocks in the news and offers a section titled Hot Goss.  Hot Goss outlines either a particular stock or sector that may or may not meet our entry criteria, but has a high likelihood of moving in the near term.

Although we make every effort to send the reports out at these times, unforeseen circumstances may lead to a variation in these timings.

We send email notifications when the above reports are updated, however this process can take up to 15 minutes, so if you are eager to access these reports, they do get published on to the website some 10 to 20 minutes before the email is distributed.  You would need to be logged into the MDS Research website. 

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Home Page

The Home tab is your first point of call when opening the research application. The home page contains morning and afternoon market commentaries, and provides a summary of the current recommendations as seen below.  Also there is a Hot Goss section which highlights a particular stock or sector that has a high likelihood of moving in the near term, although may not meet our entry criteria.

To expand the recommendation, click on the code or the stock name and this will launch the full outline of the recommended stock.

Action: The following categories are nominated in this section:

-  Buy (Long);        Buy the stock/CFD if the price trades above the specified level. 
-  Accumulate;       The stock is not necessarily in an uptrend but you can accumulate at the specified level(s). 
-  Profit take;         Previously triggered trade.  Take profits now. 
-  Sell;                    Sell the stock if you hold it, if it trades at specified price levels. 
-  Sell (Short)         CFDs enter Short position if the price trades below the specified level. 

Price:  The price section will nominate a set price or entry range. If the trigger price is a single figure, then trade the recommended action at or above (below for short positions) the specified price level. As a guide, do not enter the stock if the entry price is 15% from the recommended entry level. Discretion may be used in this instance. If the price includes an ‘Entry Price Range’ only perform the suggested action within the recommended price range.

Stop: This specifies the price at which the trade recommendation should be exited.

Instrument: The instruments you see in the recommendation panel will depend on the level of access you have subscribed to. To gain the most from MDS Financial – Research we would suggest users subscribe to full access. By having full access you will see recommendations for both Shares and CFDs. It is important that you take note of the instrument the recommendation makes reference to. As a rule, CFD recommendations are made for short term trading (between 1 day and 2 weeks) while share recommendations vary in their outlook. You may leverage into share recommendations using CFDs, however this would be at your discretion.

News: Price sensitive news is updated dynamically through out to day to keep you abreast of relevant developments that may impact the price of stocks. Simply click on the title and launch a PDF document. Should you experience difficulties you may need to download the latest version of Adobe PDF

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Shares Recommendations Page

The Shares Home page will include the current recommendations and pending recommendations. The current recommendations list the current days suggestions while the pending recommendations will outline the recommendations that have been made over the last 5 days, but are yet to meet the entry criteria. They will be entered if the criteria is met

Note; if the recommendation is triggered (or exited) it will be updated on the Portfolio Tab. This will be highlighted and we will endevour to update the portoflio within 10 minutes of the trade being updated.  At times there will be no recommendations and this will be identified by the caption ‘No recommendation today’. 

To open the full recommendation, click on the name or the code of the recommendation.


Analyst Recommendation

This section outlines the analyst’s recommendation on a technical level flagging support and resistance levels in the trade. This section will also include any other information the analysts feels will improve your understanding of why we made the recommendation. Should you have any questions for the analyst, please click on the ‘Ask the Analyst” tab at the top on the recommendation page. 

Analyst’s Update

This section outlines the trailing stop which will be updated by the analyst on a regular basis, once the trade is open.  This trailing stop is adjusted as the trade progresses in order to ensure that profits are protected, however note there may be times when the stock price gaps below this stop causing unexpected losses (slippage).

Overview

This section provides an overview of the stock on a fundamental level.

Chart

A chart of the stocks is included in this section highlighting the trade conditions on the chart. 
Note; the chart is a daily chart unless otherwise labelled.

Indicators appearing on the chart include: 

Stochastic Oscillator: Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the current close relative to the high/low range over a set number of periods. Closing levels that are consistently near the top of the range indicate accumulation (buying pressure) and those near the bottom of the range indicate distribution (selling pressure). 

Volume: Shows the volume of shares changing hands on the day. Green bars represent a higher degree of buying volume while a red bar indicates a higher degree of selling volume. 

Moving Averages: Moving averages are one of the most popular and easy to use tools available to the technical analyst. They smooth a data series and make it easier to spot trends, something that is especially helpful in volatile markets. Currently MDS Financial – Research overlays charts with a 50 period, 21 period and 13 period Exponential Moving Average. Exponential Moving Average’s reduce the lag by applying more weight to recent prices relative to older prices. The weighting applied to the most recent price depends on the specified period of the moving average.. 

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CFD Recommendations Page
 

The CFD Home page will include the current recommendations and pending recommendations. The current recommendations list the current days suggestions while the pending recommendations will outline the recommendations that have been made over the last 48 hours but are yet to meet the entry criteria. They will be entered if the criteria are met.

Note if the recommendation is triggered (or exited) it will be updated in the Portfolio Tab and will be highlighted. At times there will be no recommendations and this will be identified by the caption ‘No recommendation today’. 

To open the full recommendation, click on the name or the code of the recommendation.
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The margin calculator determines the deposit required by your CFD provider to open the position. These figures are based on margin requirements of MDS Financial – Trading.

Analyst Recommendation

This section outlines the analyst’s recommendation on a technical level flagging support and resistance levels in the trade. This section will also include any other information the analysts feels will improve your understanding of why we made the recommendation. Should you have any questions for the analyst, please click on the ‘Ask the Analyst” tab at the top of the recommendation page. 

Analyst’s Update

This section outlines the trailing stop which will be updated by the analyst on a regular basis, once the trade is open.  This trailing stop is adjusted as the trade progresses in order to ensure that at least some profits are kept, however note there may be times when the stock price gaps below this stop causing unexpected losses.

Overview

This section provides an overview of the stock on a fundamental level.

Chart

A chart of the stocks is included in this section highlighting the trade conditions on the chart. Please note the chart is an intraday chart unless otherwise labelled.

Indicators appearing on the chart include: 

Stochastic Oscillator: Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the current close relative to the high/low range over a set number of periods. Closing levels that are consistently near the top of the range indicate accumulation (buying pressure) and those near the bottom of the range indicate distribution (selling pressure). 

Volume: Shows the volume of shares changing hands. Green bars represent a higher degree of buying volume while a red bar indicates a higher degree of selling volume. 

Moving Averages: Moving averages are one of the most popular and easy to use tools available to the technical analyst. They smooth a data series and make it easier to spot trends, something that is especially helpful in volatile markets. Currently MDS Financial – Research overlays charts with a 50 period, 21 period and 13 period Exponential Moving Average. Exponential Moving Average’s reduce the lag by applying more weight to recent prices relative to older prices. The weighting applied to the most recent price depends on the specified period of the moving average.

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Portfolio Home Page

Triggered Recommendations   

When a recommendation meets the entry criteria, the recommendation will be updated into the open position screen of the portfolio section. If a recommendation does not meet the entry criteria on the day it is made, the recommendation will appear in the pending table until it meets our criteria or time elapses. Recommendations are good for the five days only for Shares and for 48 hours for CFDs and orders with your broker should reflect this.

Please note: Recommendations will be entered if the following conditions are met.

For 'Today's Share Recommendations'
1.The recommended stock has traded above the recommended level and the stock is above the open for the day a buy order can be placed. The recommendation will state a specific entry level or will suggest to buy if its trading above a certain level after 3.00pm. Some stocks traditionally sell off in afternoon trade and we prefer to see price action nearing the close prior to enrty.

TO BE CLEAR; Buy on a break of the specified level outlined in the recommendation or buy on a break of the specified level outlined in the recommendation after 3pm if this is stated

For 'Pending Share Recommendations' 
1.The recommended stock has traded above the recommended level and the stock is above the open for the day a buy order can be placed. The recommendation will state a specific entry level or will suggest to buy if its trading above a certain level after 3.00pm. Some stocks traditionally sell off in afternoon trade and we prefer to see price action nearing the close prior to enrty.

For 'Accumulation Levels' 
1. If the stock does not meet the above criteria, it may still trigger on the accumulation level. Look for the stock to find support on the suggested accumulation level, before showing signs of upward momentum. This can be determined by seeing two days of higher lows in the stock. For further confirmation, you may wish to see the market (as determined by the XJO) be higher on the day of entry.

For 'All CFD Recommendations'
1. If a price level is set, buy (sell) at the suggested price 

2. If a price level is set with a limit price, buy (sell), within that range 

Updating open trades   

The Analyst will regularly monitor the open positions and will update the stop loss levels as the trade progresses. It is a good idea to check the report regularly for updates throughout the day.


Analyst's Update
Note: The trailing stop may be updated by the analysts on a regular basis.

Portfolio

The portfolio feature keeps track of all open positions and documents all closed recommendations (for the past three months) to provide subscribers with a transparent reporting approach.

The open position panel features a snap shot of the current open positions with unrealized profit, stop level, margin requirement (for CFDs), and the like. To view the full recommendation and a history of the updated stop loss levels click on the stock code. This will launch the full trade recommendation sheet providing a comprehensive outline of the trade.

Sample Open Position Panels:



The closed position panel documents all closed positions for the past three months. Should you require a full list of recommended trades, this can be sourced upon request. To view the full recommendation click on the stock code.

Sample Closed Position Panels:

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Exiting positions - Shares & CFDs

Trades will be existed under the following conditions

-  The stop loss is triggered 
-  ASX Top 200 Stocks - unleveraged gain of 8% we will take profits. 
-  Stocks outside ASX top 200 - unleveraged gain of 12% we will take profits. 
-  You may like to close half your position at these levels and follow with a trailing stop at the two day low. 
-  The report functionaility will not allow us to do this so we will close the whole position at the levels stated above.   
-  The target level is reached (if the S&P/ASX 200 is positive for the day, close at the end of the trading day)
-  We will update this throughout the day in both the market commentary and portfolio sections 


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Tracking performance

To make informed investment decisions, it is important to have access to reliable information presented in the easy to understand format. At MDS Financial – Research we are proud of our performance and we believe in full transparency of our results. If you would like a full history of our recommendations please request it.


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Executing trades

MDS Financial offers a number of options to execute your orders.

For Shares, Options, Warrants and CFDs our subsidiary Trader Dealer Online offers a comprehensive range of services to suit all types of traders. For more information on Trader Dealer Online, view our website. www.traderdealer.com.au

If you have any further questions about the reports please contact our Research division on 1300 65 90 90.