How to Make Money from Falling Financial Markets – profit from down moves in Shares, Indices & Commodities

Can you really make money from a falling stockmarket?

Most investors are familiar with buying a shares, an Exchange Traded Fund or  investment funds and profiting from it going up but very few investors know how to profit from a falling market.

It’s all very well buying and holding in a bull market where prices steadily go up but for the last decade that has not been the case. Many professional traders and Hedge funds have been profiting from falling markets for many years but the good news is that you too can do the same and it is not as difficult or risky as some may think. There are a number of whys you can profit from falling markets and the video above gives a brief outline.

Want to learn more about profiting or protecting your portfolio from a falling market?

Vince Stanzione has designed a trading course for those that don’t want to be glued to a screen all day but want to take control of their investments and make money regardless of if the markets are rising or falling. Vince has been trading for over 27 years and shares his experiences in a simple to follow way with no jargon. The course covers how to make money in currencies, commodities, Stocks and indices. to find out more please go to http://www.winonmarkets.net

Making Money From Financial Markets – Profit from Up and Down moves

“The next 90 days are going to see massive opportunities to profit from financial markets, if you’re not trading – then now is a great time to get back in”

I need not tell you the current headlines, doom and gloom is everywhere and the money in your pocket is simply not what it was, yet against this back drop my students have been making an extra £100 to £2000+ a day simply by following my trading system and using the same tools that I use every day. Even better, these profits can be banked by trading just 20 minutes a day.

Whether you are currently trading via Spread Bets, FX margined accounts, CFDs or just buying and selling shares with a broker I am sure you can benefit from this new edition and my 26 years of experience.

Maybe you have tried trading in the past or you never got started, either way now is a great time to brush up on your skills and get started again.

Don’t forget we make money from falling as well as rising markets, my exact system which you will have access to banked 962 points  from the Dow Jones falling in just over 30 days in August 2011 and currently has a 2160 point running profit locked in on a short trade on Deutsche Bank (NYSE:DB). Of course we also make money from markets going up such as Gold and US Treasury Bonds which have been big winners for us over the last few months.

Special bonus

Once you order the 2012 package I will email you a special report on where to invest for the rest of 2011 with some great trading ideas that you can make between now and January 2012.

Whether you’re a complete beginner or you’ve already had a go at financial trading or investing in the stock market then I am certain I can help you make more money regardless of market conditions.

To sign up for the package or to read more please go to www.winonmarkets.net

Regards,

Vince Stanzione

The Luck Factor – Learning to be Lucky – Can this help your Trading?

The Luck Factor – Learning to be Lucky

Something a bit different but very related to what we do.

I found an interesting site and book called the Luck Factor written by Dr. Richard Wiseman based at University of Herefordshire (UK).

Most of you know I am a big believer in psychology and a constant student of human behaviour. Markets and business is all about psychology and beliefs and as our man Tony Robbins says “80% is psychology and 20% is the mechanics” – you can have all the software, real time data and systems you like but if your psychology and your believes are out of whack then it’s not going to work. That is why my Making Money from Financial Spread Trading program has been such a success – it takes a different approach.

I hate it when people say “you’re lucky” as the truth is we make our own luck and more importantly it’s how we deal with negative events and “bad luck” and how you turn those negative events around.  I get people that say that there are no opportunities! Please open your eyes – every day I find plenty, it’s never been as easy to be a millionaire and multi-millionaire as it is today.

You can download a short insight to what the book is about here and the full version is available on Amazon.

http://www.theluckfactor.com/docs/ebooklet.pdf

http://www.theluckfactor.com

To find out more about my course go to www.winonmarkets.net

Note: I am not paid to endorse this, just thought you would find it beneficial.

Even up the odds – What Investment

It would be difficult to deny that, here in the UK, we enjoy a flutter. Betting on horses, dogs, football and other major sporting events has been a long-standing hobby for generations. And, while it can be argued that the financial markets have always been a gamblers paradise, over the past 30 years they have become an attractive marketplace for speculation.

The idea of using spread betting techniques to gain exposure to the stock market, without having to take on the full risks of doing so, has for some time been growing in popularity. Financial spread betting dates back to 1974 when the IG Index was created to enable investors to trade the price of gold without incurring hefty premiums through the exchange controls applied if the actual metal itself was bought.

When it first hit the UK, financial spread betting was popular among institutional investors, city traders and high-rollers, but the process is now beginning to reach more widely and is used effectively even by smaller investors, particularly as a hedging
tool to profit from falling markets.

Tony Celentano, head of sales and business development at E*Trade, points out that ‘A wide range of investors will use spread betting for hedging purposes. If they have,
for example, a basket of FTSE 100 stocks or equities, spread betting can be a very cost-effective way of hedging that portfolio because there are no commission charges
and also very low set-up fees.’

Comparing like with like

When it comes to the actual mechanics of spread betting, the easiest way to explain it is by making a contrast with traditional betting. For example, if you place a £10 bet on a horse at 6-1 and your prediction proves correct (the horse wins), you would then win your original stake multiplied by the odds (£70). However, if your horse loses, then you forfeit your original £10 bet.

Spread betting is different in that you do not actually have to predict the exact result and the odds are not fixed. However, it can unfortunately result in very large losses, so it is essential that those who are new to spread betting do their homework
and start small, betting only with money that they can afford to lose.

‘Investors who choose to go down the spread-betting route must be very disciplined’, adds Celentano. ‘After all, it is a leveraged product. On going into any trade, all investors should always be working to a strategy. This could be based on pricing, fundamentals or risk exposure. Investors must also have their entry and exit levels in mind.’

Financial spread betting works primarily by predicting how financial market indices will react on a given day. For example, say you want to bet on the FTSE 100, which
is currently trading at 6,150. You are given a spread of 6,140 to 6,151 by a market-maker.

If you believe that the FTSE 100 will rise higher than 6,151, you then place an ‘up’ or ‘buy’ bet, placing a certain amount per point. Let us say you bet £10. If you are correct and the FTSE 100 rises to 6,225, you would make £740 (6225 minus 6151 = 74 points). However, if you were wrong and the FTSE 100 actually fell to 6,100, you would then have lost £510.

Strategic investing
When looking at the pros and cons of spread betting, investors tend to compare it with investing in shares, often coming to the conclusion that the latter is more ethically acceptable simply because spread betting has ‘down-market’ connotations.

Investors buy shares in a company because they believe that the price will rise over a period of time, resulting in them making a profit – hopefully a large one. What some fail to realise, however, is that spread betting is formed of exactly the same strategy, with the main difference being the reduced cost of trading shares as opposed to buying them.

But the main advantage of trading is the tax benefits. Because spread betting falls within the UK’s gaming laws, the ‘winnings’ are exempt from capital gains tax (CGT) and investors also benefit from not having to pay the 0.5 per cent stamp duty that they would otherwise have to pay with share transactions.

James Daly, investor centre representative at TD Waterhouse says, ‘Spread betting is a far more cost-effective option than buying shares. Making money, particularly in the present climate is hard enough.’

Margin trading
Another advantage, which also applies to contracts for difference (CFDs, see page 16), is the ability for investors to trade on margin – a particularly useful tool for those
who have limited capital. This basically means that by trading shares you have the potential of far greater returns, and, of course, far greater losses, than if you were to instead buy shares.

Spread betting firms allow you to place a bet with a deposit that is known as the initial margin. The exact size of this margin depends on the type of asset you have chosen
to bet on, but it usually works out at around ten per cent.

Daly explains, ‘This process is very similar to buying a house using a mortgage loan. In the worst-case scenario, your investment could go down to zero, but the whole mortgage would still be outstanding, not just the deposit that you originally put down when buying the house.’

He adds, ‘If you are trading BP shares at £3 per point, in terms of exposure, that would be the equivalent of buying 300 shares of BP. Normally that deal, not including any extra charges, would cost you £1,800. As a trader, in order to take out that position, you would only have to put down five or ten per cent of that. If you put down £180, the shares would only have to go down by 60p for you to lose your initial deposit or more. Similarly they could rise and you would make a profit.’

Limiting losses
Many people are put off spread betting because of the large potential losses. However, there are ways to become an active spread better without any of the sleepless nights.

James Parker, head of spread betting at ODL Securities, says, ‘An investor can place a guaranteed stop-loss on their trade so that if the market goes against them, they would have no further exposure beyond that particular level. About 70 per cent of our traders use a guaranteed stop loss.’

Trading veteran Vince Stanzione points out that a good trader does not necessarily need to make money every single time. ‘You could get 80 per cent of your trades wrong and still make money. Let’s say you lose £100 on eight trades and then make £500
on two trades, you are still in profit. However sure you are that the market will crash or XYZ is going to soar, make your first trade a small one, and then, if you are correct, add more to that trade.’

Spread betting can be a very addictive form of investing, both for losing traders who want to get even and winning traders that are on a roll, so it is important that, from the outset, investors know when to cut their losses.

‘Trading comes down to psychology: everyone wants to win and nobody likes to be wrong. Most unsuccessful traders take profits quickly while letting losing trades run and run hoping things will improve. Traders can spend too much time planning, when in fact they should spend much more time on the exit strategy and how much they are going to trade,’ says Stanzione.

Following the trend
In volatile markets, such as we are currently experiencing, prices can vary widely on a daily basis, an unnerving prospect for many ordinary share investors. But spread betting thrives in this environment and the more the markets move, the more money
can be made. According to Parker, ‘Spread betters look for quite sudden, sharp movements and we are seeing that in markets at the moment.’

The recent market turmoil has seen many trends come and go, with gold being one commodity that has dominated many a headline. Spread betting is a very diverse investment strategy, and Stanzione believes that the best trades are trends where a
trade is entered long or short and is left to run with the trend.

He enthuses, ‘Some of the best times to buy are when the crowd is terrified and there is blood on the streets. Markets go down because of lack of buyers. For a bull market to continue you need new money to keep the party going. If everyone is bullish on the market, then it has no other way to go but down as everyone that wanted to buy has already done so.’

There is another way…
The possibilities facing the spread better are vast, and the newest addition to this form of investing is binary betting. This is similar to a fixed-odds bet, but where odds are quoted on a scale between zero and 100 rather than in a fraction such as 2-1.

Let us take the FTSE again as an example. You have noticed that the FTSE has fallen, but think it may rise later in the day. The binary price for the FTSE to rise before the markets close is trading at 33 to 48. If you think that the FTSE will finish up at the end of the day, then you buy at 48 for a certain amount per point, let’s say £10. Conversely, if you think that it will finish down then sell at 38.

Your profits are calculated by taking the closing price minus the opening price multiplied by the size of your bet per point. In the instance that you placed a £10 per point bet on the FTSE rising before close – if you were correct then you would win £520 (100 minus 43 multiplied by £10 = £520). However, if the FTSE finished down then your losses would be £480.

Arguably, one of the key advantages to using binary betting over established forms of spread betting is that it gives you the opportunity to take advantage of non-volatile markets, as well as those that are frequently rising and falling.

With spread betting, your potential profits can be restricted if there is a lack of movement in the underlying market. By diversifying your trading strategies and opting for binary betting during these quiet periods, you could add to your winnings.

Are you too busy working to make any real money?

Are you too busy working to make any real money?

Chances are your working harder and longer now than ever before yet your income is staying the same or even declining. Your savings and investments are earning a pittance, prices of everything are going up and your being taxed to death on whatever is left – yet it does not have to be like this.

I know you’re not lazy or stupid but you need to be smarter with your money and your time. Right now you could be earning £100 to £2000+ a day trading financial markets less than 15 minutes a day. You can start part time and build up slowly and start making some real money without having to be stuck in an office and commuting.

To find out more just log into www.thefintrader.net

Frustrated Over-50s Fire Investment Advisors

October 26, 2010 – Press Dispensary – Personal investors in the 50+ age group are en masse telling their pin-striped city advisors “you’re fired” and taking on their portfolios themselves. This is the headline finding of the 2010 fintrader.net (http://www.fintrader.net) annual investor survey. And the reason for their revolt? Too many years of near-zero returns and a growing confidence that they can do better on their own.

“The number of 50+ investors who are shouldering their own risks is notably on the rise.”
Vince Stanzione

The findings of the survey, now in its sixth year, were unveiled today by financial trading coach and author Vince Stanzione, of fintrader.net, who has been teaching private investors to trade for more than 13 years and has seen a massive surge in new students from the 50+ age group over the last 12 months.

“The biggest trend I’ve seen this year is a move by the over 50s away from advisors and their high fees towards self-managed investments, with an appetite for higher risk strategies,” says Stanzione. “The number of 50+ investors who are shouldering their own risks is notably on the rise.”

“I’m teaching investors how to profit from both bull and bear markets across the globe and not just focus on the FTSE100 or S&P500.”
Vince Stanzione

Fintrader.net reported a year ago that, in Financial Spread Betting, the over 50s are by far the most successful, profitable traders and investors. Its five year survey divided 1000 investors into three age-based groups, with the 50+ group performing 25% better than the 30-50 group and a full 40% better than the 18-30 group, busting the myth that risk and results are the stuff of youth.

The 50+ success was partly because older investors took more calculated risks for higher returns than the 30-50 group, often favouring commodities and commodity companies, notably in gold, crude oil and silver.

“Our 2010 results reinforce what we discovered in 2009,” reports Stanzione, “but the change over the last year is the increasing number of over 50s coming into the self-managed market as they realise they can do better using products such as Exchange Traded Funds for a fraction of the traditional investment product annual fee.

“As interest rates have continued through 2010 at such a low level, savings look ever more unattractive, especially as the cost of living is still rising. Older investors are starting to see that they will outlive their savings, without the returns they were promised, and are also old enough to remember from the 1970s what inflation can do to savings.”

“Meanwhile,” Stanzione continues, “there are barely any returns on traditional buy and hold share investing. Anyone who bought the FTSE100 10 years ago is down more than 11% on a wasted decade. But if they’d gone for gold, they’d now be up 300%, and I’m teaching investors how to profit from both bull and bear markets across the globe and not just focus on the FTSE100 or S&P500.”

Stanzione’s business, fintrader.net, offers tools and training to those interested in managing their own trades, with a complete home study course available for just £197. Potential investors and traders who wish to learn more from a trading veteran should visit http://www.fintrader.net , where they can also download a free copy of Stanzione’s “10 Top Trading Tips”.

Financial spread betting with currencies

The largest financial market in the world is open around the clock. It has no central exchange. It is also the most competitively priced. Yet only a minority of private investors trade it, despite the fact that in the UK it can be accessed tax free by opening a financial spread betting account. This market is the foreign exchange market, also known as forex or FX.

Most people only trade currencies when they change money on holiday. But currency trading also represents a great alternative market to shares. This is because currencies are traded in pairs’: by using a currency spread bet or CFD (contract for difference), you are backing one currency against the other. Nobody talks about the forex market being up or down, because whenever one currency is losing’, another is winning.

You will usually see a currency trade quoted by your spread betting company as a pair of three-letter codes. Every currency traded in the market has a three letter code. For example, sterling is usually quoted as GBP, while the US dollar appears as USD. If you saw GBP/USD on your spread betting screen, the price next to it would be the number of US dollars that could be bought with one pound. If you then bought’ GBP/USD, you would be expecting to profit from a rise in the pound. If you sold’ it, you would be backing the dollar to strengthen against the pound (the number would go down as less dollars would be needed to buy a pound).

Spread betting and CFD trading also lets you profit from changes in currency prices by using margin: your spread betting company or CFD broker is lending you the bulk of the value of your trade by only requiring you to deposit a portion of it, your margin. This is particularly useful for currency trading, because many currencies only change incrementally against each other on a day-to-day basis.

Take the GBP/USD currency pair again: while the pound might strengthen against the dollar over a period of, say, a month, from 1.507 to 1.543, this is only a 36 point change. If you were trading using a financial spread betting account, at £2 per point for example, you would still only have made around £72. Luckily spread betting companies quote fractional changes to the currency rate, one decimal point further to the right. This means you might see the GBP/USD price move between 1.5442 and 1.5581 in a single day.

Now you have a daily trading range of 139 points, much more attractive from a spread betting point of view. Take that out to a month, and there could be a move of 300 points or more, up or down (depending on which side of the trade you are supporting).

As with other products made available by spread betting companies, currencies have spreads (the difference between the buy and sell price) and varying margin rates. The narrower spreads tend to be with the more liquid currencies, those that are bought and sold in big volumes globally, also known as the currency majors’. These include the US dollar, the world’s de facto reserve currency, as well as the euro, the Japanese yen, and the British pound.

Amongst the other popular currencies are the Canadian dollar and the Australian dollar, which are partly driven by the prices of the natural resources provided by both countries. When these are in demand, their associated currencies tend to go up as other countries are busy buying all that copper and oil. Similarly, they will tend to go down when commodities prices decline.

Beyond the eurozone, some other European currencies can see a lot of trading activity, like the Norwegian krona (another currency affected by the oil price, as Norway is a big oil and gas exporter) and the Swiss franc. The Swiss franc, usually seen as CHF’ on the trading screen, is often used as a safe haven’ currency: traders will buy it against another currency during times of market turbulence, when investors are becoming less comfortable with risk. This is because Switzerland as a country is seen as politically stable and fiscally prudent.

When spread betting on share prices, you are focusing on a company’s balance sheet, its results and the quality of its management. When spread betting currencies, you are focusing on countries’ economies, including how much money governments are borrowing and spending, and what their interest rates are. This is why many traders pay very close attention to statements made by central banks. In most major economies with freely tradable currencies, it is the central bank that sets interest rates. These can have a big influence over currency prices.

But apart from interest rates and borrowing, other factors can play a big part in the health of an economy. When governments announce unemployment and inflation figures, currencies can move suddenly. One of the more interesting currency trades over the last six months has been the euro. While the European Central Bank has kept euro interest rates steady, the near-bankruptcy of the Greek government, and the fears surrounding the economic health of a number of other eurozone economies, have led to heavy selling of the euro. At the same time, efforts by other eurozone countries to build a rescue package have prompted buying of the euro. This has made the euro an interesting currency for traders as it has moved up and down more frequently than it has historically tended to do.

“Discover the secrets of making £100 to £2000+ per day Tax Free, Trading World Financial Markets. Profit from Up, Down and even sideways markets.

  • How it really is possible for any individual to start trading successfully in less than 30 days and beat the so called professionals by following a proven STEP by STEP system.
  • How a small amount of risk capital can get you started. Learn the secrets of how precision-timed trades in leading UK, US stocks, commodities, currencies and indices such as the FTSE100, DOW Jones 30 and S&P 500 can make you very wealthy.
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  • Learn successful simple trading strategies that will take no more than 30 minutes (maximum) of your time per day that make more money than most people earn in a week.
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For free information please go to www.fintrader.net