Making Money From Commodities – Grains prices soar

With Financial Spread Betting, Contracts For Difference (CFDs) and Exchange Traded Funds (ETFs) it’s possible to back a wide variety of commodities and profit from up and down moves. By using ETFs even someone with a relatively small account can get exposure to commodities and avoid the risks of investing directly in the futures markets.

The last few months grain prices such as Wheat, Corn and Soybeans have been soaring as a US heat wave have caused many crops to fail. The Ipath DJ Grans ETN (JJG) is made up of 33% Soybeans, 26% Wheat and 41% Corn. The ETF can be  bought and sold just like a normal stock.

 

So far this year it’s been the best ETF with a 44% gain mostly of which has come in the last 5 weeks.

Here you can see the top 10 leaders and laggards so for in 2012.

To learn more about how to profit from financial markets then please go to www.winonmarkets.net  Making Money From Financial Spread Trading by Vince Stanzione consists of a 200 page workbook, 2 DVDs and access to his website. For US readers please see www.55trader.net

To learn more about how to profit from financial markets then please go to www.winonmarkets.net  Making Money From Financial Spread Trading by Vince Stanzione consists of a 200 page workbook, 2 DVDs and access to his website. For US readers please see www.55trader.net

How To Make a Tax Free Second Income Trading Markets

“The Next 6 weeks are going to see BIG moves in Shares & Commodities which will lead to massive TAX Free gains for a few which could include you if you act today”

I see some massive new moves which are about to start in the stock and commodities markets which if you’re quick you can also profit from.

How do I know? With over 25 years of experience in markets I know when I see certain occurrences that the outcome is fairly predictable.

The period starting Tuesday 6th September (day after US Labor day holiday) will see some large moves.

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, commuting or the normal business hassles.

Just go to www.winonmarkets.net to find out more

Why 90% of Spread Betting Traders lose money — and what can you do about it

What Losing Traders Do

Vince Stanzione has been trading futures, options and equities for around 25 years. As well as trading his own money he has traded money for banks and been a broker for private clients. Over the years Vince has been fascinated to discover the difference between winners and losers in this business.

Try to learn from the points I am about to give you.

1. 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.

2. 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.

3. 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.”

4. Traders often try to carry too big a position with too little capital, and trade too frequently for the size of the account.

5. They fail to predefine risk, add to a losing position, and fail to use stops.

6. They frequently have a directional bias; for example, always wanting to be long. A good trader should be happy to trade up or down.

7. 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.

8. 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.

9. 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.

10. 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.

If you want to get a head start in the markets and see your trades turn into profitable winners, join the hundreds of traders already learning from Vince Stanzione. To discover more go to www.fintrader.net

Sunday Express 11th July 2011 Vince Stanzione Review

Sunday Express 11th July 2011 Vince Stanzione www.fintrader.net

Vince Stanzione Sunday Express Review Making Money From Financial Spread Trading Betting Vince Stanzione exposed

 

 

 

Making a Fortune by playing the System.

MILLIONAIRE Vince Stanzione made his fortune from spread betting on the stock-market, turning his talents for predicting trends into an effective trading system.
Now he is teaching others to do the same through his product ‘Making Money From Financial Spread Trading,
He said: “We have been seeing a lot of interest from people in the over 55 age group and many who are retired and looking to increase their income by trading while savings interest rates are so low. In spite of having little or no previous investment experience they are doing really well and have proved to be excellent students.
“We are also seeing more people trading on their mobile phones and iPads, often as a sideline to their business or main job. There has been a lot of interest in commodities such as oil, gold, silver, corn, cotton and sugar in the last few months, which can all be traded through the programme.”
The Making Money From Financial Spread Trading package comes with a workbook, two DVDs a dedicated members internet site and full support.
Mr Stanzione explained: “It can be used for spread betting or regular share dealing and it shows you how to profit from makes going down as well as up. You learn to work to a system and become quite disciplined. We also provide you with a virtual account that allows you to practice before trying the real thing. It’s delivered in a simple and very informal style, me talking to you, and the programme is suitable for beginners as well as those with some previous experience.

Information: www.fintrader.net

Are You Standing on the Shoulders of Giants?

Are You Standing on the Shoulders of Giants?

If you have a £2 coin to hand then take a look at what is inscribed on the side and if you don’t have one it says “Standing on the Shoulders of Giants”.

The words made famous by Sir Isaac Newton: “If I can see further than anyone else, it is only because I am standing on the shoulders of giants”.

So what’s this got to do with making money from trading and investing?

Well if you want to get ahead and make an extra £100 to £2000+ per day then learning from a trading “giant” makes sense.

Why on earth would you want to learn about making money from someone who doesn’t have any? Does that make any sense to you? Me neither yet most trading systems and courses are taught be “dwarfs” who have never made any money trading and don’t have over 25 years of experience.

Whatever field you’re looking to excel in, if you learn and follow a dwarf you will become one – but by standing on the shoulders of giants you give yourself the best advantage.

To find out more go to:  www.thefintrader.net

Goldman Bearish On Commodities Near-Term; Positive On 1 Year

Goldman Bearish On Commodities Near-Term; Positive On 1 Year

LONDON, Apr 15, 2011 (Dow Jones Commodities News via Comtex) — Goldman Sachs maintained a bearish stance on commodities on a near-term basis, but raised several of its one-year prices estimates in a note to clients Friday.

While recommending a shift to an underweight commodity allocation in the short-term, Goldman analysts reiterated their view that several commodity markets, led by oil, will see demand outstrip supply later next year.

As a result, the investment bank raised its 12-month price forecasts for WTI and Brent crude oil, RBOB gasoline, USGC heating oil, Nymex natural gas, U.K. NBP natural gas, CBOT corn and NYBOT cocoa from previous estimates released in late March.

The most significant increase was in corn, which saw a 20% bump up in its one-year forecast from 580 cents a bushel to 700 cents a bushel. The bank increased its 12-month forecasts for WTI and Brent crude oil by 50 cents each, to $103.50 a barrel and $107 a barrel respectively.

“We maintain that commodity returns still have upside on a 12-month horizon, particularly following the correction in oil prices that we anticipate, barring further oil supply shocks,” the bank said in a note to clients. “We therefore maintain an overweight recommendation to commodities on a 12-month horizon.”

The note follows Monday’s announcement that Goldman is closing its long crude, copper, cotton and palladium basket trade, or CCCP, due to unfavorable near-term risk-reward indicators.

Learn how to make money from trading commodities and profit from Up and Down moves. www.fintrader.net

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.

Exchange Traded Funds and Financial Spread Betting

Exchange Traded Funds and Financial Spread Betting

Combining Financial Spread Betting with ETFs can give you a way to get exposure to an ever growing range of sectors, commodities, global financial indices which you can profit from regardless of markets moving up or down. An as an added bonus UK taxpayers can make tax free gains.

www.winonmarkets.net

Exchange traded funds, or ETFs, have been around since 1993. ETFs are index tracking funds which can be traded on a stock exchange, just like a share.
A typical ETF might seek to mirror the performance of an index like the S&P 500 or the FTSE 100, or perhaps a single sector such as the S&P Energy Sector (XLE) or commodity price such as Gold (GLD).

ETFs have been growing in popularity with investors both large and small, partly because they can be easily traded, just like any other listed security, and partly because they are much cheaper in terms of the fees they charge compared with conventional mutual funds or unit trusts.

So why would you place a financial spread bet on a ETFs? Surely, if you are convinced of the merits of ETFs, it would be easy just to buy and sell the physical ETF rather than opening a spread betting or contracts for difference (CFD) account to trade them?

ETFs are offered as spread bets for a number of reasons, many of which really boil down to the advantages of financial spread betting. For starters, when opening a spread betting account, you gain the advantage of trading on margin: your spread betting company will loan you the majority of the value of the trade, while you only need to deposit a relatively small percentage as your margin. This is something you could not do with a physical trade on an ETF. It also means you are effectively trading a larger amount of shares in that ETF than you would ordinarily be able to do, and if you are right, and the ETF’s price goes up, you get to keep all the profit from the trade. Of course, if you are wrong, the losses could be proportionately great, so caution should be used when trading these products.

ETFs are easily available via a conventional stock broking or share dealing account. But like trading physical shares, if you trade physical ETFs, you are liable to a commission fee every time you trade. In addition, you may also have to pay custody fees. With financial spread betting or CFD trading, you don’t face the drag these costs can pose to your trading account. Plus, you are able to trade other assets, like currencies or commodities, using the same account – not something that is usually possible with a share dealing account.

Financial spread betting also lets you short an ETF. This means you can potentially profit if the price of that ETF falls, by using the bid or sell price. This is much harder to do in the physical market. Yes, some providers do list inverse ETFs, that is, funds which move in the opposite direction to the index. But these are generally only available for the more high profile indexes, like the S&P 500 for example. It is much easier to short an ETF using a financial spread betting or CFD account.
Finally, you may own the physical ETF and may want to hedge your risk by buying a bit of insurance against the possibility that ETF may fall in value. You can do this using a spread betting account by opening a short trade. You must make sure you have a stop loss in place (an automatic order that will close the trade at a pre-arranged price if it moves against you), because otherwise your hedge order will eat into any profits you are making in the physical market. This can be a good tool to protect yourself against sudden market moves.

The universe of ETFs is expanding all the time as they increase in popularity. There is already a significant number of ETFs available for spread betting. These include many of the major commodities markets, where there are ETFs tracking the likes of gold, crude oil, cotton, corn, natural gas and sugar. ETFs tracking a basket of commodities (also known as Exchange Traded Commodities), like agricultural commodities or base metals, are also available to trade.

ETFs are a good way to access sector-specific indexes, for example covering financial services, utilities, real estate or oil services. They can also be used to trade some emerging markets stock markets, like Brazil, China, Russia, or even Taiwan.
ETFs are able to replicate an index through a variety of means. They are not always suitable for holding in a portfolio over the long term horizon. This is because they are subject to something called tracking error, where the very activity of buying and selling shares or derivatives to replicate the index the ETF is trying to track, as well as charging fees, means the ETF does start to deviate from the index over time. Tracking error will vary from ETF to ETF, and from market to market. This is more of a problem for those using ETFs to hold as part of a long term investment strategy, but they are ideal for financial spread betting, particularly if you measure the life of a trade in days or weeks.
Remember, with financial spread betting and CFD accounts, you do not own the ETF: you are simply seeking to profit from changes in the price of that ETF.
To learn more about Financial Spread Betting and Vince Stanzione please go to www.fintrader.net

Financial Spread Betting Explained

Vince Stanzione explains what spread betting is in plain English.

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.

In my course Making Money from Financial Trading I explain more and the exact system I use to buy and sell. For more details go to www.thefintrader.net