But the Stock-market is very risky and I could lose all my money?
Due to technological advancements, a real-time trading platform can (with prudent
management practices) reduce downside losses to an absolute
minimum. Once a stock has fallen by a certain number of percentage points, the real-time
trading platform will be programmed to automatically sell the stock. In
this way losses can be controlled and minimised. The same
principle can be applied to rises in the stock, where gains can be sold
and profits retained.
How is it possible to reduce losses to a minimum?
A
real- time trading platform allows us to buy and sell stocks as quickly
as any professional stockbroker. This means that if there was a world
shattering event such as 9/11, we would not be in a queue of people
trying to contact their stockbrokers by e-mail or phone to sell. Our
automated stop-loss system would sell stocks automatically at
pre-determined levels. Pension funds and long-term money market makers
set their sell instructions to take into account wide fluctuations in
the market so that the stock must falls by a considerable margin below
the purchase price in order to trigger a sale. This can be up to 10%to
15% below the purchase price. Our policy will be to set sell instructions at
between 0.5% to 2.0% below the purchase price; or set to client's specific requirements.
How does stop-loss work ?
If we bought 10,000 shares for example at €5.00 per share, the
investment outlay would be €50,000 (or less if leverage used) with
transaction costs for purchasing the shares of €15. If the share price
stays the same for one year, our loss for the year would be €15. Using
the trading platform's stop-loss system, we could program the computer
to automatically sell the stock if the price falls below €5.00. If the
price of the sock fell to €4.99, the the trading platform's stop-loss
system would sell the stock incurring a selling charge of €15. The loss
for the year would be the purchase cost plus the difference in the stock
price, less the selling cost making a loss of €130. Using the same system if a stock rose to €5.01 and the
trading platform's system was programmed to sell at €5.01, then the
gain would be €100 less transaction charges of €30 making a net gain of
€70.
So why doesn't everybody do it?
Because
Merchant banks, stockbrokers and future and currency traders
historically have been the only institutions with the capital and
access to trade using real-time trading platforms. These systems have
been the preserve of rich and powerful companies who for many decades
have had market advantage to make Billions of profits for themselves.
Only since the end of 2007 has this new technology and real-time
trading platforms been available to high net worth individuals,
professional intermediaries and smaller companies.
How much is the minimum deposit for opening a trading account?
Because AMP & Partners Limited
is a Financial Intermediary Company we have a facility with our service
provider to purchase stocks on a leverage multiple. This means for
example that stocks can be purchased from your account but the full
amount of the stock does not need to be fully paid up. The minimum deposit for opening an account is €10,000.
What is leverage?
Leverage can significantly increase profits. In a rising but fluctuating market, it is
possible, using the stop loss system, to make 0.5% to 5.0% gains in
relatively short trading periods. With a straight investment of €10,000,
a 3% gain would produce €300 profit. Using leverage a €10,000
investment could purchase €100,000 worth of stock, making a gain of
€3,000.
How will AMP & Partners Limited invest funds under management?
AMP will invest funds specifically to suit to client's requirements.
However AMP suggests that this facility is used for long-term
investment purposes as an alternative to placing cash at bank. Upon
being given instruction to proceed to open an account with non-specific
investment criteria, we will take professional advice on what stocks
are to be selected for long-term capital growth.
What are AMP & Partners Limited's charges for this service?
This will be dependant on the service that you require
and the number of clients taking up this service. We envisage charging
a small up-front fee to cover our costs for providing the Trading
Platform. For clients seeking investment advice through our
intermediary, the investment manager and AMP will be paid a performance
fee.
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