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ASX Share Trading - 10 Free Trades for New Customers, 5 Free Trades for Existing Customers (Normally $8ea) @ Thinkmarkets

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ASX Share Trading - 10 Free Trades for New Customers, 5 Free Trades for Existing Customers (Normally $8ea) @ Thinkmarkets
Go to Deal
barghunt1 on 12/12/2020 - 14:13 thinkmarkets.com (3280 clicks)
Last edited 31/12/2020 - 08:35 by 2 other users

Thinkmarkets asx share trading

10 free asx share trades for new customers, must be opened by 31/12/2020 and have 60 days to use once opened.
5 free asx share trades for existing customers to use by 9/1/2021.

Can only trade through app on iPhone or Android phone. Not available through iPad app or website as yet.

Normal brokerage is $8 flat fee for trades under $200,000 and you get your own HIN.

Update: Offer of 10 free asx share trades to use in 60 days of opening for new customers has been extended to 31/1/2021. (Thanks to Charlie Dont Surf for his post)

Also iPad app is now available for asx share trading.

Financial Share Trading Stock Exchange

Related Stores

ThinkMarkets
ThinkMarkets

closed Comments

  • blighst on 12/12/2020 - 14:20
    +21

    The competition heats up! Loving it

    • SeVeN11 on 12/12/2020 - 17:36
      +4

      waiting for it to be like the US…
      FREE brokerage!

      • blighst on 12/12/2020 - 17:38
        +5

        The model of selling order flow doesn't work in Australia… And the asx is essentially a monopoly so think it'll be a while (prove me wrong plz)

        • hanofee on 12/12/2020 - 20:02
          +4

          And somehow that SW 9.5 usd deal the other day got a lot of votes. From ppl who never trades US stock I guess :)

          • MakkhiChoos on 12/12/2020 - 21:23
            +2

            @hanofee: It’s worse than Stake and still!

            USD19 / AU&25.20 for one round of buying and selling is steep.

            They could have reach punched hard with 50bps and US$2 each way.

          • blighst on 12/12/2020 - 23:19
            +2

            @hanofee: Massive SW circlejerk on the internet (I suspect a lot of shareholders too 😉)

            Their AU offering is competitive - although less so with thinkmarkets and opentrader but their US offering is downright terrible 99% of cases

            • freemoneyhunter on 03/01/2021 - 08:09

              @blighst: Investing is risky enough, why make it more complicated adding US stocks, ASX has 2,200 stocks to choose from, that is more than enough to choose from.

        • ribze1 on 13/12/2020 - 17:22

          Yep called frontrunning.

  • ekswhyzed on 12/12/2020 - 14:49
    +3

    Is there any disadvantage in opening an account here as well as having Selfwealth to get 10 free trades? I assume having your own HIN here means you still own the shares purchased and can just add them to your existing holdings?

    • Charlie Dont Surf on 12/12/2020 - 15:24
      +3

      You can consolidate/transfer from to the other down the track (I think the minimum size for a holding is usually $500) depending on which platform you prefer after trying them both.

    • barghunt1 on 12/12/2020 - 15:30
      +10

      You can have more than one share trading account and more than one hin.

      You can transfer individual stocks from one hin to another by filling in paperwork if the Hins are both in the exactly the same name otherwise it’s an off market transfer which attracts a fee.

      I haven’t seen that thinkmarkets or selfwealth charge for individual share transfers between hins in exactly the same name (some brokers do) but I’m not completely sure of that so you need to check that yourself.

      Do your own research please. It’s important.

      • herbus on 12/12/2020 - 15:54
        +1

        Have transferred plenty of times from ANZ to Selfwealth, no fee. Accounts in same name.

      • Charlie Dont Surf on 12/12/2020 - 16:10
        +1

        I transferred from CMC to SelfWelath, account in identical name, it cost nothing at either end but did take around 2-3 business weeks.

        Min parcel per security was $500 so if you own a chunk of shares in some 3 cent spec exploration or cannabis company, it won't move across until it reaches that threshold (you will need to submit the request then).

        Having two accounts with two brokers is feasible enough IMO, is hate to have more that though. Sharesight (premium) would assist though if they support your brokers.

        • macr0hard on 12/12/2020 - 17:09

          Moving is a pain but if not it’s also a paain at tax time too if you have the same stock at 2 places, at least in the case of ETFs

    • starbearer on 12/12/2020 - 18:53

      N00b question: Can I use Selfwealth's HIN while I open an account with these guys? So that whatever securities I get through them are associated with the same HIN?

      • barghunt1 on 12/12/2020 - 19:55
        +3

        You can transfer your hin from one broker to another but two brokers can’t have the same hin. It’s a hin per broker.

  • macr0hard on 12/12/2020 - 14:51

    Are these guys chess sponsored?

    • silent1 on 12/12/2020 - 15:10

      Yes

      you get your own HIN

    • ragrum on 12/12/2020 - 15:11

      you get your own HIN

      Going by what OP said, yes, but it would be worth checking yourself.

      • vis on 13/12/2020 - 18:26

        I opened the account it doesn't look like own HIN but shared HIN and bank account is also shared, looks like they will manually allocate the amount to your account by looking at the reference number. That's a deal breaker. They haven't mentioned anything about individual HIN. HIN doesn't appear anywhere.

        • ragrum on 13/12/2020 - 19:27
          +1

          I haven't opened an account, so I can't confirm, but their application form says they will create a new HIN for you:

          Tick this box if you would like FinClear Execution Ltd (FinEx) to establish a new SPONSORED HIN and act as your CHESS
          sponsoring broker.

          • vis on 13/12/2020 - 19:34

            @ragrum: I didn't see the tick box anywhere, they might have changed the form.

  • Charlie Dont Surf on 12/12/2020 - 14:51
    +1

    CHESS sponsored etc?

  • barghunt1 on 12/12/2020 - 15:13

    Deleted as comment was meant to be a reply.

  • SydBoy on 12/12/2020 - 15:22
    +8

    I will be moving out of selfwealth if they won't match price within a month…!!

  • macr0hard on 12/12/2020 - 15:26

    wow, massive game changer with instant funding up to $50K. I'm wondering if they charge a fee for moving shares out later, majority of my portfolio is with SW

    • worrierwan on 12/12/2020 - 15:44

      wow so they have payID or something similar?

      • macr0hard on 12/12/2020 - 15:45

        Poli

        • pitpicker on 12/12/2020 - 15:56

          doesnt Poli usually come with a fee?

          • blighst on 12/12/2020 - 16:09

            @pitpicker: Well there is a fee (usually <1pct), but Thinkmarkets must be absorbing it

        • F1Maniac on 12/12/2020 - 18:33
          +6

          Selfwealth support leaves a lot to be desired, instant funding is great most requested and ignored feature in selfwealth

    • blighst on 12/12/2020 - 16:08
      +1

      No fee for moving shares - in their FAQ

  • rev0 on 12/12/2020 - 15:34

    So this seems more competitive than Selfwealth for ASX shares.

    Is Stake still the best bet for US-listed shares?

    • blighst on 12/12/2020 - 16:39
      +3

      this seems more competitive than Selfwealth for ASX shares

      It is… and if your trades are less than $5k then Opentrader is even better ($5)

      Is Stake still the best bet for US-listed shares?

      This depends on a few things like how frequently you're trading, how big and how often are you FXing.

      Charles Schwab and InteractiveBrokers will typically be the cheapest, but both have requirements (Schwab has a loosely enforced $25k account minimum and IB has activity minimums).

      In terms of more accessible brokers taht operate out of Australia, Stake is good if you're trading a lot - as there's no brokerage, but an above normal FX spread (close to 1pct). CMC is good for larger one off trades as 0 brokerage and 0.6% spread but no US cash account, meaning every buy and sell will incur that spread.

      • hanofee on 12/12/2020 - 20:05

        In what way? Depend on what u want to trade, size and ur activity most will end up cheaper and easier to use than Stake. Schwabb, IB, IG, etoro to name a few

      • bohn on 12/12/2020 - 21:01

        Don't Stake only have limit orders that expire at the end of the day? That (along with the FX) is pretty annoying.

        In my experience (and from others who have done it as well) - Schwab will say 25k but you can deposit and trade with whatever you want.

      • rev0 on 13/12/2020 - 23:19

        Thank you for the detailed response mate. Hadn't come across Opentrader and looks like they were spun out of OpenMarkets (of whom Self Wealth are a client). Will look into Schwab and IB too for the overseas trades.

    • [Deactivated] on 12/12/2020 - 17:18
      +1

      Stake is accessible for beginners and children, but in terms of trading platform cost you can't beat Interactive Brokers at 0.3c per share brokerage. However, you need $10,000 USD to open your account, but thats nothing compared to other AU based broker which require $35K AUD accounts.

      • bohn on 12/12/2020 - 21:03

        but in terms of trading platform cost you can't beat Interactive Brokers at 0.3c per share brokerage

        Well, Schwab is $0 brokerage. There is the occasional one cent transaction fee on selling the shares.
        Also, because IB is per share it can make trading penny stocks pretty expensive. Not an issue at Schwab though. The real benefit that IB has over Schwab is the ability to trade other markets than the US, as well as trading futures.

    • scead on 13/12/2020 - 06:22

      Appears that think markets and stake don’t support trust account types. SelfWealth does support trust account and now has support for US share trading.

      • barghunt1 on 13/12/2020 - 10:43

        In the thinkmarkets funding faqs it states for eft

        “You will be emailed ThinkMarkets Trust account details to make a deposit. (No deposit limit).”

        So the monies do go into a trust account but it’s unclear whether it’s one trust account and monies get allocated to broker accounts or individual trust accounts like selfwealth. They are pretty responsive on email so you could ask.

        Also in the funding faqs they give you the option to attach an existing Macquarie cash management account. They just don’t create one for you so that’s an option if you want your own bank account and have one of those.

  • Griffindinho on 12/12/2020 - 15:39
    +3

    r/Asx_bets is a good place for newcomers

  • SydBoy on 12/12/2020 - 16:52
    -2

    (https://www.ozbargain.com.au/user/274753)

    are you planning to beat it or ozbargainer can move on?

  • Young gardener on 12/12/2020 - 17:10
    -4

    I’m new to the share business. Can someone explain me the basic things (with a simple language for a novice) of this bargain please? A simple math tells me it’s free $80 worth of share that I can convert to money later. But, I’m pretty sure there are lots of catch involved

    • loksmack on 12/12/2020 - 17:15
      +4

      Normally when you buy shares, you have to pay a brokerage fee. The deal here is that this fee is waived. You aren’t getting free shares.

      • gerrys on 12/12/2020 - 17:17
        +1

        Buy and sell share to be exact.

        • supervigilante on 12/12/2020 - 17:20
          +1

          Lol I made the same mistake in my explanation. I guess selling isn't in my mind. Buy and hold long term.

    • supervigilante on 12/12/2020 - 17:18

      Normally when you buy shares, you pay for the shares, plus a brokerage fee like $8 (Thinkmarkets), $9.50 (SelfWealth), $10-20+ (big banks). So with this bargain, Thinkmarkets doesn't charge you the $8 per trade brokerage for 10 trades within 60 days.

      You don't get free shares.

    • [Deactivated] on 12/12/2020 - 17:21
      +14

      A stock is a fractional ownership in a company
      Ordinary/Common Stock
      Most companies consist of ordinary stock
      Ordinary/Common stock is usually entitled to voting power equivalent to the pro rata ownership of the company
      Preferred Stock
      Sometimes companies have a classed called preferred stock
      Guaranteed yield that’s paid first usually more than ordinary stock
      Limited voting rights
      Important to note the existence of preferred stocks

      Class A and B Stock, "Founder" Shares
      Recently a number of high profile technology companies with "long term" time horizons have created separate share classes for investors and founders
      More control more votes etc. 10 to 1

      More upside or downside voting rights become more valuable
      CEO fired, Google acquisition etc.
      Voting rights can change in value
       
      A stock price is not a random arbitrary value
      If stock price A is x and stock price is x+1, is B>A always.
      What does the stock price actually mean
      Stock price x number of shares = equity value of the company
      Stock price= NPV of all future dividends(Ord distributions to shareholders)
       
      Leisure/Retail, Mid/Large Cap Tech, Companies under special situations
       
      When do companies pay a dividend
      ROIC= net operating profit after Tax
      Total Assets-Non Operating Assets-Current Liabilities-Cash
      ROIC: Return on Invested Capital
      If ROIC>r where r is the normal market return or discount rate then the company pays no dividends
      If ROIC<r is the normal market return or discount rate the companies pays dividends

      Old companies pay dividends
      New fast growing companies pay dividends
       
      Bull case the argument for why a stock is going to increase in price
      The bullish investors=The optimistic investors
      Perma bull Someone who is always optimistic
       
      Bear Case- The argument for why a stock is going to decrease in price
      The bearish investors=The pessimistic investors
      Perma Bear Someone who is constantly Bearish
       
      Macro investing
      Top down approach
      Form views and predictions
      Both long and short
      Etc oil price going up
       
      How the economic machine works by Ray Dalio
       
      Activist investors buy large stakes in underperforming companies and try to obtain seats in the company's board with the goal of effecting major change
      Profit comes from implementing stake that makes the company more valuable
      Changes can range from dividend payout policy, cost cutting divestment from particular projects or even firing the CEO

      Pure Arbitrage
      Pure arbitrage takes advantage of pricing inefficiencies across securities and its derivatives to make a guaranteed risk free profit
      Pure arbitrage funds use computers to rapidly identify and execute trades and because arbitrage opportunities only last for fractions of a second
       
      Statistical arbitrage
      Risk arbitrage take advantage of theoretical price inefficiencies to make and expected profit
      Unlike pure arbitrage where trades are risk free and produce instant profit, risk arbitrage carries some degree of risk and profits are made when the price converges
       
      Fundamental Long Only
      Your classic fund that buys securities when they're under-priced and sells when they're overpriced
      Similar strategy to fundamental long only but allowed for the use of short selling
      Warren Buffet
       
      Net Exposure= Total Long Positions - Total Short Positions
      Invested Capital
      Gross Exposure= Total Long Positions + Total Short Positions
      Invested Capital
      High Frequency Trading(HFT)
      Automated trading using powerful computers that use quantitative models to identify opportunities in the market
      New Based trading
      Using bots to scan Bloomberg, news, and Twitter feeds
      Special Situations
      In special situations where there is an announcement of news with an uncertain probabilities of a particular result, differences can appear between the market expectations and reality
      Political events, mergers, acquisitions, bankruptcy, hostile takeovers, and government regulation changes.
       
      Merger and Acquisition arbitrage
      Probability of an M&A deal going through, or the probability of a higher counteroffer price announcement by the acquirer, is different to what the market expects.
       
      Fund of Funds
      Fund of Funds invest in ETFs, mutual funds, hedge funds, private equity funds, real estate investment trusts, and other funds.
      Very high fees Two layers of fees
      Active and Passive strategy
       
      Technical Analysis
      Technical Analysis is a style of investing which attempts to predict future price movements based on historical price movements of the same asset.
       
      Weak Form efficiency
      Economics describe three types of market efficiency: weak form, semi strong form , and strong form
      Don't believe in technical analysis
      Semi strong performance. Inside or private information lets you make money in the market.
       
      Strong form efficiency: combines Weak Form Efficiency and Semi-Strong Form Efficiency. Advocates of Strong form efficiency add the assumption that the market price reflects all the information and analysis
      90% of the market of Chief Forex Dealers place at least some weight on non-fundamental analysis
      At shorter horizons, skew is towards technical analysis
      At longer horizons, fundamentally analysis is preferred
      Most believe its self-fulfilling
       
      Perfect Competition Monopolistic Competition Oligopoly Monopoly
       
      The Herfindahl-Hirschman index (HHI) is a commonly accepted measure of market concentration. It is calculated by squaring the market share of each firm competing in a market, and then summing the resulting numbers, and can range from close to zero to 10,000.
       
      Lerners Index= P-MC
      P
      Price elasticity of demand= %change in quantity demanded
      change in price
       
      Elastic
      Lower market power
      Choosing between 5 budget airlines for a given flight route
      Inelastic
      Higher market power
      E.g. purchasing a patented cancer drug
      Special e.g
      Hermes handbags
      Elastic good raise price lose revenue
      Inelastic good raise price lose revenue
      0-1
      More supply constraints
      Land, concert tickets
      1
      Fewer supply constraints
      Factory working at 50% capacity
       
      Complementary goods have a negative cross elasticity of demand e.g if the mortgage prices increase, quantity demanded for buying houses will decrease
       
      Substitute goods have a positive cross elasticity of demand
      If public transport price increases private vehicle use will go up
       
      Beta
      Beta is the level of market risk associated with a stock and represents the tendency if a security returns to respond to swings in the market
      A stock index will have a beta of 1
      Cash and risk free securities have a beta of 0
      Utilities and consumer staples typically have a beta below 1
      Industrials and consumer discretionary typically have a beta above 1
       
      Beta = covariance
      variance
       
      Apple, Ebay have a higher market risk as higher beta
       
      Alpha is the level of return generated in excess of returns attributed to the market.
      Passive investment funds seek to perform at the level of the market.
       
      Fama French 3 Factor Model
       
      Size premium (smaller companies have higher value premiums)
      Market cap/average market cap
       
      Higher price/Book have a higher value premium
       
      Active management is a waste of money
       
      Passive funds have better returns on average and are lower fees

      • [Deactivated] on 12/12/2020 - 17:23
        +2

        @Young gardener these are the first page my Introductory notes on Stocks from a Crimson Education course taught by Jamie Beatton, Harvard educated ex Tiger Managment Corp Fund Investor. If you'd like I can post the 3 other parts for you below.

        • ramona on 12/12/2020 - 20:08

          Yes please. Found it fascinating reading these!

          • [Deactivated] on 12/12/2020 - 23:31

            @ramona: Accounting section:
            Balance sheet
            Assets= Liabilities + equity
             
            Current Assets
            Cash and cash equivalents is there enough cash to meet short term obligations
            Accounts receivables how quickly does the company collect its receivables
            Inventory how quickly does the company sell the inventory
            Receivable in one year
             
            Non-Current Assets
            Fixed assets Is the business capital intensive. Do the fixed assets need to be upgraded or replaced.
            Intangible assets
            Receivable after one year: How aggressive is the amortization schedule? Does the company capitalise staff R&D costs
             
            The increase in intangible assets is attributed to capitalising software development costs, which is then amortized over 3-5 years
            Fast growing tech companies often capitalised salaries as intangible assets then amortize the cost instead of expensing them upfront.
             
            Current liabilities
            Short term debt collected in 1 year
            Accounts payable
            Deferred revenue
            Non Current Liabilities
            Long term debt collectable after 1 year
             
            Debit to Equity ratio: debt shareholders equity
            Working Capital Current Assets-Current Liabilities
            Current Ratio current assets divided by current liabilities
            Quick Ratio
            Liquid assets to current liabilities
             
            Income statement
            Revenues-Expenses
             
            Revenue: sales + other income
            Earnings: net profit after tax-dividends on preferred stock
            Gross margin sales-cost of sales
            Net margin net profit after tax
            Unit Economics' Marginal revenue-marginal cost) per unit
             
            Six Flags Entertainment
            Operating Leverage= Change in Operating Profit
            Change in Revenue
            Change with high fixed cost but low marginal cost have high operating leverage.
            Theme parks have high fixed costs and low marginal costs
             
            Cash Flow statement
            Operating cash Flow cash generated from customers cash paid to operating suppliers
            Financing Cash Flow: Cash received from borrowings and stock issuance cash dividends paid-debt repayments
            Investing Cash Flow: Cash from sale of property, plant and equipment- cash spend on CAPEX-payments related to M&A
             
            Efficiency Ratios
            Receivable turnover
            Profitability ratios
            Return on assets
            Solvency and Coverage ratios
            Solvency ratio
            Valuation ratios
            P/E Ratio
             
            Return on Assets net operating profit after tax\total assets
            Return on Equity: net operating profit after tax/shareholders' equity
            EBIT Earnings before interest and taxes
            EBITDA earnings before interest taxes depreciation and amortisation
            Free Cash Flow FCF: Operating Cash Flows+CAPEX-Change in working capital
             
            Solvency and Coverage Ratios
            Solvency Ratio:net income+depreciation/total liabilities
            EBIT/Interest Expense:How easily a company can pay interest on its loans

          • [Deactivated] on 12/12/2020 - 23:31
            +1

            @ramona: Valuation Methods Section
            Book Value: total net assets
            Historical cost is the basis upon which assets and liabilities and measured in accounting
            Future expectations of earnings are not priced into the book value
            Market Capitalisation: stock price x number of shares outstanding
            The equity value or market cap is determined by the stock value
            Stock price of a company includes future expectations of earnings
            Enterprise value(EV): Equity +debt-cash equivalents + minority interest + preferred stock
            Used where the effects of financing decisions of eliminated.
            Google, Apple and Costco have high P/B ratios
             
            P/E price to earnings ratio
            Affected by financing and accounting decisions
            Most important metric
            P/S
            Price to sales ratio
            Ignores profitability but useful when comparing companies with negative earnings
            EV/EBITDA
            Enterprise value to EBITDA ratio
            Eliminate the effects of financing and accounting decisions
            Does not include CAPEX
            EV/FCF
            Similar to EV/EBITDA but includes CAPEX
            Timing of CAPEX can distort EV/FCF
             
            Steps to comparable analysis
            1. Select suitable ratios to use as basis for valuation
            2. Select comparable companies to use in determining the market multiple. Comparable must be as similar as possible to the company you are assessing, in terms of product lines, geographies, growth potentials, profitability ratios etc.
            3. Spread Key Statistics, Ratios, and Trading Multiples.
            4. Benchmark the Comparable Companies.
            5. Determine Valuation.
             
            Discounted Cash Flow Model

            WACC = rD (1- Tc )( D / V )+ rE ( E / V )
            Re=cost of equity
            Rd=cost of debt
            E=Value market value of the firm's equity
            R=market value of the firm's debt
            V=E+D=total market value of the firm's financing(equity and debt)
            (E/V) = (Equity/Total Value)
            TC=corporate tax rate
             
            Yahoo finance
            Investor section of company website
             
            No position greater than 10% of portfolio
             
            Lamont Post Earnings Announcement Drift
             
            Heuristics (mental shortcuts for decision making)
            Framing (mental biases that affect how understand and respond to the events)
             
            Funny Thinking: Mis-Reaction
             
            Credit Card Data
            Web Crawling
            Surveying
            Car park photos with drones
            Counted in Vietnam
            Expert Calls
            Expert Network Companies
            Many experts haven't got anything useful to say
             
            Sell side resources
            Management teams often go to investment banks when they want to do a road trip to meet potential or existing investors so they can efficiently ask them questions
            Research is often very optimistic
            Banks research
            Sell side analysts are useful because they speak to lots of other firms
            Management conference access
            Nothing you tell the bank is confidential
            Hedge funds employ Investigative Journalists
            Short selling information
            Data scientists
            Institutional knowledge
            Having a collection of people to soundboard your ideas and logic against invaluable in building out your thesis
             
            At least Half a billion mcap hedge fund
             
            Credit card data
            Website analytics
            Surveying
            Expert Calls
            Sell side resources
            Investigative journalistic
            Data Scientists
            Institutional knowledge
            Network of contacts

          • [Deactivated] on 12/12/2020 - 23:32

            @ramona: Intermediate Investing Section
            Margin of Safety
            Bull, Base and Bear Case to get comfort around an investment
            Margin of safety is a core principle of fundamental equity analysis where you only trade if it only trades below its fundamental margin of safety
            Only trade when there is 20% upside or downside
            The goal of the margin of safety is to minimize downside risk and protect yourself in the bear case scenario where your projections don’t turn out to be as accurate as you have hoped
            Cash Reserves Tangible assets
            Functionally hard to actually obtain a bulletproof margin of safety
            Rarely does a business have a magic cash buffer or some stable assets that will be hard to dent
            If bad things start happening to a company the multiples across all of its business units tends to decline and can for a substantial amount of time usually presenting a time to buy
            Realistically a margin of safety can be applied as a sanity check around the bear case buy you can't find $1.50 of cash for $1 cash value these days.
            Margin of Safety Book
             
            Investor Expectations
            The single most important aspect of stock investing is understanding investor expectations
            The key question is how fast are companies growing in comparison to market expectations
            A stock price is the combination of buyers and sellers expectations
            Excess returns are obtained when an investor is able to accurately forecast growth compared to expectations
            Formed by a combination of factors
            1.The guidance by the management team of companies
            2.Key side by side analysts
            3.The price of a stock
            All publicly traded stocks have average earnings estimates which usually consists an average weighted estimate
            Management Team Guidance
            Most companies release annual financial guidance stating revenue and earnings projections
            Some companies provide granular breakdowns by product categories of geography
            Some companies i.e. Snapchat provides no forward looking guidance
            Updated Infrequently
            Company guidance is fairly limited
            Sell side research takes the limited guidance and builds out more extensive models which demonstrate a lot of more granular insights into how the company is functioning
            Sell side analysts have close communication with management team
            Sell side analysts provide a perspective on shifts in potential revenue
            Sell side analysts can provide price target
            Analysts may shift their view on their overall attractiveness if industries
            These things can drive value of stock
             
            The Power Sell Side analysts
            Credit Suisse's, Goldman Sachs, JP Morgan and Morgan Stanley
            Most analysts only update their models of companies they cover following quarterly performance updates and guidance
            The Power sell side analysts are the ones who actually change their view intra quarter and much in the same way a buy analyst trades
            Sell side analysts are incentivized to either hug the crowd and thus avoid being too wrong or be the most bullish or bearish and thus get the most inbound client interest
             
            How can investors beat sell side analysts
            Firstly there is no specific analyst to beat
            For a given estimate most sell side analysts are either bullish or bearish
            Typically cover 50-80 companies
            Buy side analysts usually cover 20 positions or less giving them substantially more time to do research
            Sell side analysts spend most time speaking to clients trying to drive day trading activity for their sales desks. Investors can focus on investing
            Conflicts of interests
            Sell side analysts do not have budgets to spend on research
             
            Creating differentiated stock investing ideas is the single most important skill in investing
            The nature of good ideas is there is some disagreement
            If everyone thinks it’s a great idea its usually not a good idea
             
            Don't just look at charts and buy or sell
             
            Consumer demand
            Netflix a desire for more convenience with online viewing
            Abercrombie and Fitch less desire for branded clothing's and more sensitive consumers
            Starbucks- a demand for a superior style of coffee consumption
            GNC- willingness to buy protein supplements online
             
            Chipotle
            Fast casual restaurants
            High quality at fast food speed
            Inexpensive consumer conscious food
            Biggest problem was that lines was taking too long
            Introduced line herders
            Supporting line herders The sophisticated retail investor checks other locations and sees if this practice is common
            The sophisticated investor also asks the employee is this us a new responsibility ad why is it being done
            Increased growth 12% and outperformed expectations by 3-4%
             
            Grubhub is a online food and delivery company
            Grubhub and Seamless merger
            4.54 billion market cap
             
            GrubHub stock fell from $45 to a low of $17
            Business has not deteriorated
             
            Ubereats food offering was focused on higher end food and 10-11pm
            Dominos offered the best technology platform
            Postmates have delivery fees with surge pricing
            Grubhub had a high concentration of cheap food options and had multiple late night 45 delivery but 1/10 screwed up fees low
            Travel mates too expensive
            Grubhub provided the cheapest food delivery option
            Cohort data
            Many students had locked in preferences
            Grubhub provides the broadest election of foods
             
            Leverage your own differentitated insights
            Many investors do not heavily use delivery foods
            Its easy to see big scary competitors like Amazon, UberEats coming what seems like an identical market competition for share
            Being aware
             
            Online disruption
            Consumer sentiment human rights, animal rights, body image, Victoria's secret
            Cross border opportunities where a substantial source of revenue is generated from a market significant portion of investors may be unfamiliar with i.e. Louis Vuitton, Prada, Gucci generating sale in China
            Consolidating players and roll ups i.e Valent dental clubs national advertising, ClubCorp Country Clubs growth CAPEX buying more clubs maintenance CAPEX too low
             
            Shifts in consumer actions between millennials, young professionals, adults and families
            Market saturation and competitive entry by new players e.g Car Rental companies Too much inventory Not enough Capitalization
            Differentiated insights into the minds of millennial customers is particularly interesting, what will happen to SnapChat. How is Abercrombie and Fitch's brand image evolving
             
            Is an Idea actually novel and new
            Why might I have observed something that no-one has observed
            Typically trend around industry disruption that affects industries are well studied
            Mall traffic decreasing by 2-3% per year in the US
            High Ticket items Intimate fashion i.e lingerie and bikinis? Furniture? Online
             
            Keep your ideas and ears wide open
            Read extensively on Seeking Alpha Sum Zero Value Investors Club and quality media publication like the Economist Wall Street Journal etc.
            General Business and Consumer reports not finance section
            Only one or two good ideas per lunch
            Social media fashion food news public sentiment
            Sense check is the market issuing something
             
            The Economist
            New York Times
            Wall St Journal
             
            Process when you hear about a company
             
            Not every idea is a good idea
            Realistically you will need to do a lot of research into companies and then not invest a lot
             
            1. Stock Ticker P/E ratio, revenue and stock price
            2. Go to the investor relations section of the company website download the most recent company power point presentation fast to read and read through this
            3. Go onto Seeking Alpha earnings Call Transcripts and read most 2 recent transcripts
            4. Go onto the Goldman Sachs, Moran Stanley Research Portal and other key portals and download the most recent financial model and sell side analyst coverage
            5. Get a view on what are the existential debates for the investor community around the company
            6. See how my idea as to what may be happening aligns and doesn't align with the investor debates
            7. If your idea aligns with the debate but you feel you may have a differentiated insight or an edge you can continue but if not usually stop
            8. If your idea is quite distinctive to the current debate around the company but your think it could be material and significant it is a good idea to continue
            9. Download the 10k of the company and
            10. Highlight anything about the IS/BS/CF statements that’s seems interesting
            11. If company recently IPO'd read the IPO prospectus as it is very detailed
            12. Identify some of the key competitors and read some of their earnings call transcripts
             
            5 hours to stage 9
            9-10 hours for exploration of a good company
             
            Market Sizing-Current Market Share?
             
            Market Sizing Related Verticals
            Amazon started as an online book seller. It developed a crushing competitive advantage in the distribution of online books. As an investor studying Amazon you could evaluate the total addressable market for book sales(large)
            You could also have evaluated the total addressable market share
             
            Competitor Analysis
            You need to care about structural business advantages that ca withstand continual assault by competitors
            You need to understand who are the current competitors
            You need to understand what potential competitors pivot and enter the space
            You need to understand why you competitor advantage or disadvantage within its vertical and whether they have fortuitous circumstances or encumbered competitive advantage
             
            Competitor Analysis
            What is the key competition for 1Above
            1Above retails for $5.50 bottle and usually comes in fairly large servings
            It is also served as a tablet that can be dropped in water
            What is the most substantial competition Water
            Although there are some other flight beverages and hydration pills, bottled water still owns and majority of revenue in this space
            The principle problem 1above needs to solve how to persuade people need a hydration beverage tailed to stop jet lag
            Second companies can jump straight into the market and undercut them
             
            Brand power and awareness(coke)
            Natural monopolies(Auckland airport)
            Global network effects (Facebook, Wechat)
            Local Network Effects(Uber)
            Vertical Integration (Nestle/Nespresso)
            Propriety IP(Pharmaceutical Companies like Pfizer while parents are active for 7 years)
            Government Integration (Boeing, Lockheed Martin)
            Structural Cost Advantage(Geico Online Insurance)

             
            The Business Moat
            Does the business you are studying have a defensible moat? Why is it actually resilient to competition?
            The best businesses have clearly identifiable traits that give you confidence in the defensibility of their position
            Company Reporting A company has to release information publicly and be in a room with 50 or 100 investment analysts
            Earnings call Transcript
            Questions answer transcripts
            How narrative evolves over past 2 transcript's
            Find out who the management team is
            LinkedIn
             
            Board must be critical
            Not just rubber stamp
            How many are independent come from outside source not from inside the company
             
            More transparency in business
            More confidence in the business
             
            Actual employees buying their own share good signal of confidence
            Shares buyback not a good sign
             
            Insidertracking.com
             
            IPO stock restricted from selling in first 6 months from IPO
             
            Linkedin
            Talk to companies employees
            Left the company recently
             
            TripAdvisor Reviews of Theme Parks, Hotels
            Better than surveys
             
            Industry Experts
            Don't ask about the stock
             
            Channel Checks
             
            Checks and Ongoing Reporting
             
            If you buy a stock you have to follow the company reporting
             
            Apollo Education Group Background
            University of Phoenix
            BPP Holdings
            Western University
             
            Strategic alternatives means a company wants to sell their company
             
            Short selling
            Short squeezes heavily shorted stocks are susceptible to short squeezes as short sellers are forced to sell their positions
             
            Typically best to keep position under 10% ideally under 5%
             
            Yahoo finance key statistics
             
            Interactive brokers
            Vanguard and Blackrock

        • Niko123456 on 13/12/2020 - 12:10

          Crimson education, lol. That guy is like 12 years old.

  • clement1986 on 12/12/2020 - 17:26

    how do i know this broker is legit?

    • [Deactivated] on 12/12/2020 - 17:32

      Chess Sponsored and HIN transparent ownership, appears to be legit.

  • mrvaluepack on 12/12/2020 - 17:47

    How much if more than $200,000?

    • Lit Homie on 12/12/2020 - 17:54
      +1

      you trade more than 200 000 per transaction? Probably 0.05% should probably double check before putting above 200k tho

      • [Deactivated] on 12/12/2020 - 18:07

        Day flipping is huge right now, isn't uncommon

  • AssociatedShane34 @ ThinkMarkets on 12/12/2020 - 17:54

    Would it be easy to buy them in this and then transfer over to commsec?

    • [Deactivated] on 12/12/2020 - 18:06

      Also interested in this

    • hanofee on 12/12/2020 - 20:07
      +2

      Yeah but why? Commsec is more expensive. More logical to transfer from commsec to this

  • JDNE on 12/12/2020 - 18:17

    How does this compare to other brokerages such as Commsec, Selfwealth, Nabtrade, etc?

    • blighst on 12/12/2020 - 18:47
      +1

      Well it's cheaper, but as a result doesn't have some of the features the others have. Some key points of distinction are

      • It's mobile only
      • $8 ongoing brokerage up to $250k orders
      • allows instant funding with Poli

      Doesn't have t+2 tho which commsec does

      • barghunt1 on 12/12/2020 - 20:00

        It would be better if they had their website and iPad app available to use.

        • oswade on 13/12/2020 - 22:19

          Heard from a customer service rep they are about to launch it

          • barghunt1 on 14/12/2020 - 09:23

            @oswade: I’ve heard they are working on an iPad app, they hope to release it soon but don’t have a release date. I hope it’s soon but until it’s available I’m treating this as a product only available on smartphone.

  • Misakigrim on 12/12/2020 - 18:45

    Buy high sell higher

    • dust on 12/12/2020 - 18:50

      Blaze it.

    • ets27 on 12/12/2020 - 20:30

      Wasn't it buy high sell low?

      • Misakigrim on 12/12/2020 - 23:46

        Ah yep you're right - That's the plan with Z1P!

  • No ONE on 12/12/2020 - 18:49
    +2

    Market is now higher than pre-COVID prices. Not worth to rush through because of free trade.

    • mohan76 on 12/12/2020 - 19:31

      you can short them

    • barghunt1 on 12/12/2020 - 19:59
      +1

      I know but they do have one of the cheapest brokerage around if you have to eventually pay. It’s not like your getting free trades and then have to pay high brokerage after if you want to stick around.

    • Gerry H on 12/12/2020 - 20:52

      i agree, this vaccine craze just won't stop, risk stocks go up every single day since vaccine news.

  • asun88 on 12/12/2020 - 19:36

    Who is the underlying chess sponsor? The ASX does not list Think market as a registered market participant. Can't find any information on their website.

    • barghunt1 on 12/12/2020 - 19:52
      +2

      FinClear Pty Ltd.

      It’s in the general faqs on their website.

  • polarq on 12/12/2020 - 21:00

    Whats this from their Fees and Charges page:

    | Live click refresh price data | $22.00 per Month | 20 minutes delayed and live snapshot pricing for orders |

    Do we have to pay the monthly fees just to hold an account and have live click refresh price data of stocks or ami misinterpreting this?

    • blighst on 12/12/2020 - 21:36
      +1

      They charge for live data, just like other discount brokers

      • ragrum on 12/12/2020 - 22:01
        +2

        Just for clarity, they do show live data for free in the order screen, which is good enough for most people.

        • blighst on 12/12/2020 - 22:02

          Yep, which is the same as Selfwealth

          • SydBoy on 12/12/2020 - 22:14

            @blighst: Don't think selfwealth provide live data even in order screen.

            Does anyone else has same understanding?

            • blighst on 12/12/2020 - 22:42

              @SydBoy: I believe they only do on order screen

            • ragrum on 13/12/2020 - 01:39

              @SydBoy: In the SelfWealth order screen, you can expand the section marked 'Market Depth' to see live bids and offers.

      • polarq on 12/12/2020 - 22:17

        Does selfwealth charge the same? I thought we see the live price for free on the dashboard/order screen.

        • blighst on 12/12/2020 - 22:42
          +1

          Only on order screen (same as thinkmarkets), but selfweath won't give you the option for live everywhere which thinkmarkets does

        • CheapBrah on 12/12/2020 - 23:12

          You need premium to see it live on dashboard. Otherwise dashboard is delayed. Order screen is live though.

          • polarq on 12/12/2020 - 23:36

            @CheapBrah: I think I got a free premium trial thats why I cant tell the difference yet.

            So we can see the love price when we order for free without premium? As a workaround is there a different tool/website for live prices?

  • watwatwat on 13/12/2020 - 02:14
    +4

    The instant deposits alone is enough for me to never use selfwealth again. Depositing and withdrawing takes AGES on selfwealth.

    SW should have invested more in making this experience better for the customer. T+2 on commsec is amazing in comparison.

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