Every trader has their journey & will make their own mistakes, my new E-book 7 traits of successful financial traders written for http://Deriv.com I aim to help you avoid as many mistakes as possible. Download free copy (PDF) https://bit.ly/3B58JYF
So let’s see what the 7 traits of successful financial traders are.
They cut their losses and let winning trades run. …
Wall Street veteran and author of “The Millionaire Dropout” Vince Stanzione weighed in on the flurry of activity and short-selling scandals that have rocked financial markets over the last few months. With the financial media recently laser-focused on stories like the independent retail traders of Reddit and the Gamestop (GME) squeeze campaign, Stanzione addressed what he believes is an unfair characterization portraying short-selling as financially irresponsible and malicious.
“Short selling is the act of selling a stock you do not own, which you have to borrow in the market in the expectation that the price of the stock will decline, before buying the stock back (hopefully at a lower price) and returning the stock to the lender,” said Stanzione. “For example, if I short 100 shares of a stock at $120 and that stock then goes down to $100, I can buy the stock back at less than I paid for it and make a profit. In Europe, Contracts for Difference (CFDs) have been used for over 25 years by professional and retail traders to profit from a range of markets including stocks, indices and commodities. Financial Futures and traded options (put options) have been around for many decades. These allow you to profit or hedge from down movements. The idea of making money from a falling price is not new. Retail customers – especially in the U.S. – tend to shy away from short selling.
Going Short Has a Limited Upside Stanzione also noted that the maximum potential gain on shorting a stock is 1x, as the most a company can go down to is zero – and that is an extremely rare event. Returns can be magnified with leverage or using a traded option. On the other side, a stock does not have a maximum upside and could easily go up 500%. In theory, there is no limit to the potential losses from being short, so it is important to manage risk and position size correctly. Short squeezes, where rapid and significant upward price moves cause short sellers to cover in mass quantities, can push prices against short sellers.
“Even in a bull market there are always opportunities to profit from falling individual stocks,” Stanzione said. “But overall, the majority of my trading gains remain from being long stocks. Short selling is a bit like driving a car: most of the time you’re going forward, but at times you will need to reverse. We have witnessed a very favorable period for stocks, with many speculative names and SPAC stocks moving based on a lot of hype and rosy expectations – all of which are likely to disappoint. These are the types of scenarios where going short makes sense as a stock returns back to a price in-line with the fundamentals. It’s worth remembering though that markets take the stairs up, but often take the elevator going down. It’s not unusual to see large falls in a stock happen over short periods, especially when things start to go wrong. But I believe the next 12 to 18 months will be a very lucrative time for short sellers.”
For more marketing insights, expert opinions, and trading analysis, follow Vince Stanzione on social media: Twitter, LinkedIn.
About Vince Stanzione A self-made multimillionaire, Vince Stanzione has been trading markets for over 35 years and is the author of the New York Times Best Selling “The Millionaire Dropout,” along with “Making Money from Financial Spread Trading.” He has been favorably featured and quoted in over 200 newspapers, media outlets, and websites including CNBC, Yahoo Finance, MarketWatch, Reuters.com, Independent, Sunday Independent, Observer, Guardian, The Times, Sunday Times, Daily Express, What Investment, Growth Company Investor, the New York Times, Bullbearings, City Magazine, Canary Wharf, Institutional Investor China, and Shares Magazine.
Vince currently lives on the island of Mallorca, Spain, and trades financial markets including currencies, stocks, commodities, and cryptocurrencies. Learn more about his work at: www.FinTrader.net.
Whilst many focus on what a stock or crypto currency is doing daily or even hourly it is often wise to take a long term view.
The graphic below shows what would have happened had you invested $1,000 and just let it for 5 years. As you can see Ethereum won the race by a massive margin.
Of course the past is not the future but I remain positive on Cryptos and Ethereum and Bitcoin remain in a up trend and a bull market. Of course there is plenty of short term volatility but if your holding with a longer term investment horizon daily moves will not concern you.
Another idea is to look at a monthly savings plan where you buy a set amount each month. Some months you will get more others less but you will get an “average price” over time.
You can open an account here and start trading with as little as £150, $100 or 100 Euros
Ever wondered, how successful traders became successful? Even expert traders were once rookies, making plenty of mistakes – but you do not need to repeat these mistakes. Here are 7 valuable lessons, from successful traders to you.
I have just finished a new e-book written for Deriv.com which goes through the 7 traits of successful financial traders.
In case you had not noticed Ethereum(ETH) is up over 100% so far this year, yes 100% in just over a month. The good news whilst I don’t expect it all to be a smooth ride and yes there will be plenty of bumps I do expect to see Ethereum move up at least a further 100% before the end of the year and that is still an amazing return in a zero interest rate world. Of course, I may be totally wrong but if you have followed my track over the last 35 years you know my averages are rather good, but it’s your money and your choice. How to buy Ethereum7 days a week Use a trusted broker the 2 that I trust are Kraken and Binance.
With over 35 years of trading experience, Self Made Multi-Millionaire and New York Times Bestselling author of “The Millionaire Dropout,” Vince Stanzione, has plenty of trading war stories to share, but today is coming out in support of smaller traders and resents that Wall Street is calling them “dumb money.”
It has long been overdue Wall Street has treated Retail as dumb money for so long, yet today’s “dumb money” is far smarter than it was in the 2000 DOT COM boom and is far better equipped with access to institutional data. The only issue he sees is that many brokers cannot cope with the surge in volume, and platforms are seeing regular crashes which makes exiting trades difficult.
Stanzione thinks what you’re seeing in markets now is not just about money. It’s a deep routed resentment against Wall Street, financial media and the belittling of the retail trader with their preaching of knowing better. Of course, the best way to teach Wall Street institutions a lesson is by making them lose money. Stocks with high short interest and low floats seem to be the easy target right now, but this could easily change to overvalued stocks where retail “short” stocks.
As he approaches 52, Stanzione would tell the next generation to shoot for the stars but also keep one foot on the ground. Take some of your profits and lock it out of sight. He is a big fan of holding Bitcoin (with no leverage) as a long-term savings plan as he believe it will protect you from inflation which he says is running at 15%+ a year, not what the government tells you and all FIAT currencies are debasing to near zero.
As for trading, yes, it’s a very speculative bull market but a good trader can also make money in a bear market, so be ready to switch to short trades, put options or learn to use financial futures. Stocks take the escalator up and the elevator down so have exit plans and also have plans to profit from down markets.
For a disciplined retail trader, you have never had it so good and it’s the Wall Street institutions that are now the “dumb money.”
Vince Stanzione has been trading markets for over 35 years and is a self-made multi-millionaire. He is the New York Times bestselling author of “The Millionaire Dropout” and is the author of “Making Money from Financial Spread Trading.” He has been featured favourably and quoted in over 200 newspapers, media outlets and websites including CNBC, Yahoo Finance, MarketWatch, Reuters.com, Independent, Sunday Independent, Observer, Guardian, The Times, Sunday Times, Daily Express, What Investment, Growth Company Investor, New York Times, Bullbearings, City Magazine, Canary Wharf, Institutional Investor China and Shares Magazine.
He mainly lives on the island of Mallorca, Spain and trades financial markets including currencies, stocks, commodities and cryptocurrencies. For more information, visit www.fintrader.net and follow him on Twitter: @vince_stanzione
You will also be give a demo account so you can practice trade.
Why synthetic indices should be in your trading toolbox
Synthetic Indices are unique financial indices that mimic real-world market volatility and are available for trading 24/7/365. They are based on a cryptographically secure random number generator audited for fairness by an independent third party. Volatility indices have been trading for over 10 years with a proven track record for reliability and continue to grow in popularity. Deriv offers a transparent and fair platform with a continuous two-way pricing and does not second-guess which side of the trade you are going to take.
Synthetic indices have constant volatility and are free of market and liquidity risks which is often seen in other financial markets.
A good trader like a good plumber will have different tools in their toolbox to tackle different jobs. Synthetic indices have a place in your trading as there are many advantages to trading a synthetic index over a currency pair or traditional financial index such as the FTSE100 or Dow Jones. These advantages include:
Synthetic indices offer high leverage, tight spreads, and 24/7 trading.
They’re not affected by world events.
You’ll know your exact risk at the outset, so no nasty surprises or margin calls.
You can start with a low trading capital.
They’re free from real-world market and liquidity risks.
They’re not subject to manipulation or fixing.
They’re ideal for automated trading with continuous quotes and no gaps.
You have the ability to choose a range of synthetic markets with lower or higher risk reward characteristics.
They’re ideal for technical trading and can be traded using MetaStock MT5 charting software and chart pattern trading.
Synthetic indices are ideal for small and large traders alike with deep liquidity and fast order execution at any time of the day or night
A stable, regulated, and established financial company underwrites them, reducing counterparty risk.
New synthetic indices and products will continue to be offered as Deriv heavily invests in research and development.
The products offered on the Deriv.com website include binary options, contracts for difference (“CFDs”) and other complex derivatives. Trading binary options may not be suitable for everyone. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on the website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money. Before trading in the complex products offered, please be sure to understand the risks involved.
Note: Synthetic Indices and Digital options are not available in all countries. UK’s clients are able to trade Synthetic indices in digital options format. The can trade FX in the CFD format
So far Bitcoin is up 65% this year beating all major financial assets. I am receiving many emails asking is it too late to buy? The simple answer is NO, Bitcoin still has a long way to go and in my view will reach at least $20,000 in the next 6 months but that is likely just the beginning, $40,000+ is very likely in 2021 or 2022.
You can download a recent report from greyscale here and I would draw your attention to page 11 the SF2 Stock to flow model which gives you an idea of where Bitcoin could be heading.
Below you will find a link to an interesting article on Gold written by Charlie Morris someone how is worth listening to. The article outlines my own views and in fact I think we will get to $7,000 an ounce Gold before 2030.
Gold is currently trading at $1750 that is around 1400 GBP as I write. Of course Gold will not go up in a straight line however I believe it will be one of the best investments over the next 10 years.
Even before the Covid19 outbreak governments world wide were printing copious amounts of money. Interest rates are now at zero and in some cases negative and that will not change anytime soon. Just think about that, it means money has no value and in fact once you factor inflation in it is depreciating.
As well as buying gold there are many other ways you can protect your wealth and profit from current markets.
The key to understand that governments will keep printing money until currencies become worthless.
If you are already a member of my millionaire trader program then you will know exactly what I am doing. If you are not already following me than take another look at http://www.millionaire-trader.com