Trend following is ideal for end of day or end of week trading. No need for real time data or expensive software.
Trend trading allows you to profit from markets going UP or DOWN.
You can start trend trading with a small starting bank and a spread trading account
You don’t need to know much if anything about the fundamentals of the market.
Trend following makes the markets simple and easy to understand. Don’t reject a solution because it seems too simple.
Don’t confuse simple with easy or risk free. While the system is simple, humans find it hard to follow rules.
Trend following works on any freely traded market worldwide, including currencies, commodities, bonds and shares.
What do you get for your money?
- 2 x boxed DVD set ‘Making Money from Financial Spread Trading
- Making Money from Financial Spread Trading (A4 Ringbinder to compliment the DVD’s)
- How to Stop Existing and Start Living (340 page paperback edition) by Vince Stanzione
- Daily updates and Trendspotter access via Vince’s website
- £20 Free bet (Compliments of Bet On Markets
- Making a fortune from fixed odds Betting (Downloadable ebook)
However, what really counts is the education found within the course and how does this translate to the real world of trading for a novice trader and/or experienced trader?
I think that the majority of people looking at any review of a product will first and foremost want to know, who is behind the product. I [Vince Stanzione] have been a successful trader for a little over 30 years.
So I have a decent pedigree. But what you really want to know is, does the course show you how to begin trading using spread betting and are the methods employed going to be profitable?
Well, it’s a resounding yes to both questions. In the detailed course book and within the DVD’s I walk you through the placing of trades on a number of spread betting platforms. All the basics are covered such as risk per trade such and the correct use of entry/exit criteria.
I also share a number of extremely easy to use strategies which you can use to make the trades. The primary focus is on trend trading, which all of the great traders over time have employed as it unveils virtually no screen time and simple proven rules.
The course is easy to digest and makes total sense as far as how the markets really work and what would be traders need to do to profit. The trade style is such that you don’t ever spend time in front of the computer during the day. My approach is about getting into the clearly defined trends, as dictated by the system rules, and staying with them and only exiting when his rules dictate. So here’s a simple Set and forget system which will take out he emotional problem you can find with day trading. Even, with losses occurring, the system encourages the cut the losses short and let the profits run mentality.
Because the system is end of day, this in effect means that the system is ideal to anyone who is employed and wishes to trade as a supplementary income or the retired who don’t want to be glued to screens all day. Simply check the charts, or even use the members website and then either enter or exit a trade if the criteria are met.
If trend trading is good enough for Warren Buffett, it’s good enough for me.
So How do you make a Financial Spread Bet?
Financial Spread betting also known as Financial Spread Trading is a way that traders can back shares, currencies, commodities, bonds and many other financial markets in many cases with relatively small stakes. Markets can be traded from one account both online, by phone and now on many mobile devices such as the Iphone.
In the UK it is tax free and offers the opportunity to make a profit whether the market goes up or down. It offers access to a wide range of markets from Indices (like the FTSE 100), 1000’s of individual shares, commodities and currency exchange rates.
A financial Bet, unlike traditional share-dealing, you never own the actual share or commodity. You are simply making a bet on whether you think it will go up or down in value. You stake a certain amount of money per point movement – the more it moves in your favour the more money you make, the more it moves against your prediction, the more you lose. The good news is that your risk can be strictly limited using a guaranteed stop loss. So if you stake £1 a point with 100 point stop, your maximum risk is £100.
The Spread: The spread is the difference between the price you can buy at and the price you can sell at. You will buy at the higher price if you think the market will rise (Go Long or Up Bet), or sell at the lower price if you think the market will fall (Go Short or Down Bet). The tighter the spread, the smaller the market has to move for you to make a profit. No commission or funding costs are charged in spread betting the costs are all built in to the spread.
What can I Spread Bet on?
Individual Shares – Shares in individual companies from almost any market in the world including UK, US, Europe, Australia, Hong Kong and Singapore to name a few.
Stock market indices – Popular indices are the FTSE 100 and Dow Jones, but other indices such as the Nikkei 225, Eurostoxx 50, NASDAQ, S&P 500 or DAX can also be traded.
Commodities – The last few years has seen a surge in trading on commodities such as Crude Oil, Natural Gas, Gold, Silver, Copper, Palladium, Wheat, Cotton, Coffee Cattle, Soybeans and of course those famous Pork Bellies.
Currencies – Another hot area especially for shorter term traders is the Foreign Exchange market (Forex or FX). Popular currency pairs include EUR/USD, USD/JPY, GBP/USD, GBP/EUR, EUR/JPY and many more.
Interest rates and Bonds – Short term or long term interest rates, Government Bonds or gilts.
How does a Spread Bet work?
First, you select your market – Let’s take an individual share e.g. McDonalds.
Start by checking the price quoted by the spread betting company – it will reflect the actual share price. There will always be two figures – the sell price and the buy price, the sell price will be lower. For example, it could be 7450-7460. The 10 points difference is the spread.
You must decide if you think the price of McDonalds shares will go up higher than the buy price, or fall lower than the sell price. If you think higher, you “buy” at the buy price, if you think lower you “sell” at the sell price.
Now, you must decide how much you are betting, that is, what your stake is – this is the amount of money you gain or lose per point of movement on the value of the share. It is always expressed in currency per point of movement e.g. £1 per point.
In spread betting you do not have to pay the full cost of what the share would be to buy – You will only have to pay a percentage – this is called trading on margin. But spread betting companies will require you to have a certain amount on deposit to cover potential losses (exactly how much varies from company to company and this figure is often called the Initial Margin Requirement).
You can close a trade at any time (as long as the underlying market is open) whether you are making a profit or a loss. You do not have to meet any specific value on any specific date.
A Spread Bet Example
So let’s consider our McDonalds example, it’s currently January and quotes are being made on June 2011 contracts – your spread betting company currently has a quote of 7450-7460. Two weeks later the share price increased in value to a quote of 7600-7610.
Example 1: Going Long
So you buy £5 a point of McDonalds at 7460 as you think the price will rise.
The price moves to 7600-7610.
You take your profit and sell at 7600.
Profit = (7600-7460) x 5.
Your profit is £700.
Example 2: Going Short
So you sell £5 a point of McDonalds at 7450 as you think the price will fall.
The price moves to 7480-7490 and you decide to get out
You cut your losses and buy at 7490
Loss = (7450-7490) x 5.
Your loss is £200.
Fixed odds financial betting
Another feature of my financial trading course is that you can use it to trade fixed odds markets.
What is Financial Fixed Odds Betting?
Fixed odds financial betting offers a tax free (for UK), flexible and innovative alternative to trading the financial markets. With fixed odds betting you can bet on the financial markets knowing exactly what you stand to gain or lose from the outset meaning you have no nasty surprises or margin calls. Whilst Fixed odds financial betting has been available for over 11 years many have still not caught on to what a great product this is.
A Financial fixed odds bet is a bet which pays out a fixed amount if a predicted event occurs within a specified timescale. Financial bookmaker Betonmarkets.net offer bets from 1 minute to 12 months with most bets being placed on fairly short term outcomes.
If the predicted event does not occur within the duration of the bet then all you lose is your original stake (again a fixed amount). The events that you can bet on are more varied with financial fixed odds betting than with other forms of trading such a spread betting. Not only can you bet on the market going up or down, you can bet on the market not going up or not going down, you can bet on the market staying within a range or not staying within a range and much more. Most fixed odds bets can also be sold back before expiry allowing you to recoup some of your stake if the bet is going against you or take profits before the expiry.
Financial fixed odds betting is the simplest way to trade the financial markets. The bets are flexible, transparent and easy to understand. If you’re not familiar with trading then fixed odds betting is a great place to start and betonmarkets offer a free virtual account with $10,000 of virtual money to test your ideas using real prices. If you’re an experienced trader then fixed odds betting will be a valuable addition to your investing toolbox with many traders combining Financial Spread Betting and Fixed Odds.
Choose your own risk levels and payouts
With financial fixed odds betting you can choose the parameters and decide how big or small the payout is. For each bet you decide the amount you wish to win, when you want the bet to finish, the bet type and the market levels. The odds are then calculated and displayed on screen along with the amount you need to stake.
You can then decide to either place the bet or tweak the parameters all in real time. Bets are a priced using options models such as Black Scholes however you don’t need to worry about learning complicated option pricing models as the website does all this for you. Simply but the more likely an event will happen the lower the odds and lower the return, of course you are also taking a lower risk and more likely to be paid out. If the event has little chance of happening especially in a short time frame then the odds will offered to you will be much higher leading to a big payout. Experienced trades tend to mix and match risk and reward.
Markets you can trade
Binary.com offer a wide range of markets to trade including major currency pairs such as Euro/$, EUR/JPY, USD/JPY and AUD.USD to name a few. Major stock indices such as Dow Jones, FTSE100, NASDAQ 100 and Hang Seng. Stocks such as Apple and Google. Betonmarkets.net also offers bets on Gold which have been popular of late.
Profit in all markets
With a wide range of innovative fixed odds bets you can profit in all market conditions whether the market is going up, down or trading within a range. Further still, you are not limited to simply picking the direction of the market; you can bet on picking the highest point the market trades at in a certain period, or you can bet on the market reaching (or not reaching) a certain level. Bets such as Touch or No Touch, Higher or Lower and In or Out offer some unique why to profit which are not available with Financial Spread Betting.
Small and Big clients welcome
A great feature of fixed odds is that small clients are welcome with bet sizes starting from as little as £2 total risk to over £25,000. Account can be opened in £, US$, Euros and Australian Dollars. You can fund your account via a credit card, debit card, bank transfer and other electronic payment services meaning that you can easily set up an account even without a credit card.
To learn more about how to profit from Fixed Odds Financial Betting and Spread Betting then go here
Vince Stanzione is the author of the new ebook Making A Fortune From Fixed Odds Trading which is included with Making Money From Financial Spread Trading.
The complete guide to Financial Spread betting
Making money from financial spread betting is a reality if you follow a system or indeed somebody that actually makes a living from the markets.
So why do only around 10% of traders make a profit long term?
It’s often quoted that 90% of all Financial Spread Betting and FX accounts do not make money. From my research this figure also stands true for most retail stockbroking accounts, so it’s not just financial spread betting. It’s also said that 90% of professional money managers do not beat an index fund.
So what separates the 10% winners from the 90% that lose? Well it’s not rocket science… Regardless of whether you’re using Spread Betting, CFDs or buying and selling shares via an online broker; it’s important to treat trading and investing as a business and not recreational fun.
The winning traders have a system (which does not need to be complicated) but it must have a defined way to get in and out of a trades.
It’s also important to realise that many of your trades will not be successful and that is just part of the business.
What is important is to limit the losses on those trades and remember the saying cut your losses and let your profits run. Don’t be another mug punter and let one trade hammer your bank because you can’t take a loss.
I have found over my 30 years of trading and investing that we can learn as much from losing traders as winning ones, if we can identify the patterns of a losing trader and then ensure that we do not do the same then we will be successful.
Trend following Financial Trading System
Trend following is an investment or trading strategy which takes advantage of longer term rising or falling prices (short trading). Traders who employ a trend following strategy do not aim to forecast or predict specific price levels; they simply get on the trend and ride it until at some stage that trend starts to reverse. A market “trend” is a tendency of a financial market price to move in a particular direction over time. It can sometimes we call momentum trading.
If there is a turn contrary to the trend, we exit and wait until the turn establishes itself as a trend in the opposite direction. Trend following can be used by smaller traders using Exchange Traded Funds, Financial Spread Betting, CFDs and FX accounts.
Whilst Trend following tends to be associated with the commodities market the system can be used on shares, Fx, Stock indices and commodities. Trend following is ideal for those that don’t want to be watching prices all day.
Most of my money is made following the trend; and I have consistently made money doing so for 30 years. My financial trading course is trend trading in nature.
Trend trading can be applied at your financial bookmaker with big advantages… Financial Spread Betting firms give you the opportunity to gain exposure to the performance of key markets… but without having to put up the full value of the transaction; as you’re trading on margin you can also profit from falling markets which is not easy to do via a traditional stockbroker.
It’s also incredibly easy to place a trade at a financial bookmaker. You can see how it is done in this video of me placing a trade at the popular ig-index
What losing traders do and how to avoid joining them!
So if you follow the trend in the markets and avoid these losing trader mistakes that I’m about to tell you about, you are already laying some pretty solid foundations.
- Many traders trade without a plan. They do not define specific risk and profit objectives before trading. Even if they establish a plan, they “second guess” it and don’t stick to it, particularly if the trade is a loss. Consequently, they over trade and use their equity to the limit (are undercapitalised), which puts them in a squeeze and forces them to liquidate positions. Usually, they liquidate the good trades and keep the bad ones.
- Many traders don’t realise the news they hear and read has, in many cases, already been discounted by the market. Often, new traders jump into a market based on a story in the morning paper; the market many times has already discounted the information.
- After several profitable trades, many speculators become wild and un-conservative. They base their trades on hunches and long shots, rather than sound fundamental and technical reasoning, or put their money into one deal that “can’t fail.”
- Traders often try to carry too big a position with too little capital, and trade too frequently for the size of the account.
- They fail to predefine risk, add to a losing position, and fail to use stops.
- They frequently have a directional bias; for example, always wanting to be long. A good trader should be happy to trade up or down.
- Lack of experience in the market causes many traders to become emotionally and/or financially committed to one trade, and unwilling or unable to take a loss. They may be unable to admit they have made a mistake.
- They over trade. Many new traders after opening a Financial Spread betting account are like a child with a new toy. They want to trade anything and everything. The new internet dealing offered by most bookmakers has made it even worse.
- Many traders can’t (or don’t) take the small losses. They often stick with a losing trade until it really hurts, then take the loss. This is an undisciplined approach…a trader needs to develop and stick with a system. If you are following charts and a trendline or moving average is broken, you must stick to your rules.
- Many traders break a cardinal rule: “Cut losses short. Let profits run.” Emotion makes many traders hold a losing trade too long. Many traders don’t discipline themselves to take small losses and big gains.
OK, so you’ve got a good idea of how things work in financial spread betting and how to not become another losing trader… but how do you know what positions to take in the first place? What shares and stocks should you be buying?
Don’t panic, I’ve got that covered for you. You can increase your chances of opening profitable longer term positions by following some simple guidelines.
Remember though, you may get lots of small losses that you cut quickly and then you get that winning trade that just seems to keep going. This is where the big profits are made.
Here are my fool proof tips to buying profitable shares.
- Buy strength, sell weakness
Everyone likes a bargain. It’s human nature! But here’s the truth: you don’t make money from buying bargains.
Cheap stocks often appear to be bargains after a large drop, but they often continue to fall. Buy break outs and sell them higher. Sell shares that are breaking down. Never let anyone tell you they are cheap and can’t go any lower!
- Trade active stocks
Many newcomers don’t realise that while you have thousands of companies quoted on the stock market both in the UK and US, most of these stocks don’t move much.
If you look at the daily volume of share traded on many companies you, will see that nothing has been traded. Always trade active shares with volume, and sectors that are active or trending well.
You can use my website or software like sharescope to filter out these opportunities and safe yourself time. You can also list all companies that are 20 days or less from their all-time lows or highs.
Spreads are the tightest on the most active shares such as Vodafone, BP, Unilever, BT, and GlaxoSmithKline.
- Look at shares as if they are people
Stocks often act like people. Each has its own personality. What’s more, a stock can change from one to another quickly. Like people, stocks can be steady, predictable plodders or aggressive and unpredictably. Charts and moving averages can help you spot the personalities which you can trade. On the whole we like quiet and trending stocks.
- Trade the trend
As I’ve already said, trade the trend. Don’t try to be smart and pick the top or bottoms, just trade with the trend. Of course the trend will never last forever, but by using a trailing stop you can lock in profits along the way. With Financial spread betting, options, CFDs and Futures we can as easily go “short” and profit from falling markets.
- Add to winning trades never add to a losing trade
You’ll sometimes hear so-called experts advocate averaging down. Don’t listen! Never add to a losing trade. Instead, add to winning trades. If you buy £1 and the stock goes to £1.50, buy some more.
For long-term investments of five to ten years, buying units on a monthly average price may make sense, but never average down shorter term trades.
- If the trade is wrong, cut it!
Your first loss is normally the smallest. If you were expecting something to happen and it doesn’t, simply cut it. Also, if you have a stop set and the share is heading towards it, don’t move your stop unless you have a very good reason to.
For example: if you start with £1,000 and you lose 20%, you are left with £800. You now need to make 25% to get back to £1,000.
If you let a trade move 50% against you, you will now need to gain 100% to get back to £1,000.
- If you can’t see a trend then don’t trade
Markets and shares don’t always trend. In many cases a share could consolidate for weeks, months and years. Vince Stanzione likes to trade trends, and if something is not trending he recommends walking away. Come back when it starts to trend.
- Let the winners run
For many, holding a winning trade is as painful as holding a losing one. The only way you can survive is to let winners run more than you let losers run.
If you have a plant in your garden and it is growing well and strong, you don’t dig it up and kill it. So, don’t do the same with your healthy trades. The majority do of traders do exactly this. As a broker, Vince Stanzione saw it all the time. He says clients often wanted him to sell their winning stocks, and keep their losing stocks!
Use a trailing stop to lock in profits. If you really find it hard to let a winning trade run then part close the trade and run the rest.
Keep it simple… Always!
You don’t need to make things complicated to make money from financial spread betting. The money is made in the waiting. Traders that keep things simple, have an exit strategy and can be patient will largely find themselves in with the 10% of winning traders.
If you think making a living from trading is like you see in the films, then think again. In reality it couldn’t be further from the truth.
You can also watch this video to learn more about financial spread betting and trading using the Vince Stanzione Course
Forget trying to find a shortcut
If you are serious about making money from financial trading, invest some time in yourself to do so. Read all that you can from the people that have and do really make money from the markets. Watch YouTube videos about them. And even ask them questions directly.
What you don’t want to do is fall into the trap of buying into hype and unproven systems.
With all the labour saving devices, computers, mobile phones and the various “time saving” gadgets why is it that most people never have any time or are always in such a rush?
In a society which continues to strive for instant, quick, real time, disposable and easy goods and services it comes as a shock to many that I continue to make massive profits from taking a longer term view and a rather simple trend trading approach.
When the Dow Jones Index was first calculated in 1896 it was disseminated once a day at the close.
In 1923 the price was released every hour and in 1963 the price went real time. Today we have a 24 hour price thanks to Globex, Financial Bookmakers and the Indicative Dow quoted in Germany.
Many still think that the switch in 1923 to hourly prices helped to fuel the 1929 crash.
While progress and technology should be embraced in many cases understand that quicker is not always better, microwave food may be quick and easy but does it taste that good?
Daily prices and weekly charts still work best. For my own trading 99% of my trading ideas come to me at the weekend when everything is shut.
A good tip to make money in any financial market is work on the “less is more” principle. Sometimes the best trades are the ones you don’t make.
Right now I am seeing lots of people rushing in to FX or Forex Trading thinking that its “easy money” I assure you it’s not and most of these robot software systems are nothing but random generated trades.
Getting started as a financial trader can be a perilous journey if you start off on the wrong foot. Bad advice, bad systems and bad support can leave you nursing financial wounds in the blink of an eye. Here’s the proof of how I can help you get it right from the beginning using my proven financial trading course…
- Fool proof system
My financial trading system has easy to follow rules that tell you exactly when to trade. There is no guess work or stupid hunches or anything like that involved. Just clear signals and no fluff or fillers.
- Test with no risk
Not only can you test my system for a full year to see how it works and profit from it; you can also test my system out using a virtual account if you wish. This means that you are never even risking a penny of your own money but you’ll see the results in real time.
- A few minutes a day is all it takes
Yes really… 15 minutes a day is all you need to operate my system once you know how it works. No grinding it out, no stuck to the screen all day and no wasting time.
- A system for beginners and professionals alike
Complete beginner or seasoned pro I can help you make more money from financial trading. I’ve been trading the markets using my system for over 28 years. It has stood the test of time and made profits in all market conditions.
- A huge range of markets to trade
My system can be used on all markets; commodities, indices, shares, forex, ETF’s, seasonal and more. There are always opportunities.
- Free members website
You’ll find a wealth of information to help you succeed as a financial trader in the member’s only area. From chart’s and signals to free reports and quotes. It’s all there. There’s even a trading simulator included.
- First class support
I pride myself in supplying you with first class support should you ever need it. Once you have ordered my financial trading course I’m only ever an email away. Seriously… that’s really me that replies.