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