Do you know when to sell your shares? – Profit from down markets

Everyone tells you when to buy but no one tells you when to sell, Vince Stanzione gives you some tips

I have now been investing and trading for 28 years, in that time I have seen plenty of trading systems, newsletters and gurus come and nearly all go. What I have always noticed is that:

a)      They would tell you when to buy but would never tell you went to sell and get out. It’s often the case with tipping services or other media.

b)      They would also want to you to buy and would never recommend short selling as if it is some great sin to make money from down moves.

So when I wrote Making Money From Financial Spread Trading I knew exactly what I wanted to offer, it had to have a clear buy and sell rule and the system had to be happy to go short (profit from down moves) as well as up. Today you can also use Inverse ETFs, which go up as the underlying go down.

Vince Stanzione Financial Spread Betting Make money trading shares

Right now my system is short S&P500, DOW, FTSE100 and other markets are getting closer to a sell signal but what’s important that it will give a clear signal when to close this position and it will also give a new buy back signal which will allow us to profit from the next up move.

Now longer term I am optimistic about global stock markets but at the same time nothing wrong with making some money from falling prices as well.

Having a system and a plan to follow cuts out the emotions, as I have stated before its not what you or I “think should happen” it is what is really happening. Also my style of trading does not mean you have to be stuck to a screen all day and checking prices every few minutes, once a day is normally enough and you can get everything done normally within less than 10 minutes.

To learn more about how to profit from up and down moves in Financial Markets using Financial Spread Bets, CFDs, Share trading and Exchange Trading funds please visit http://www.winonmarkets.net

 

Vince Stanzione Interview Maximum Profits In Minium Time

Alex Kramer catches up with multi-millionaire  Financial Trader and Investor Vince Stanzione  to ask where he sees opportunities in today’s financial markets. Discover how to profit from markets going up and down using financial spread betting, CFDs, options, fixed odds bets and Exchange Traded Funds. Regardless if your new to investing and trading or you have many years of experience Vince Stanzione can help you with his step by step trading system to but the odds in your favour. You can trade part time spending no more than 15 minutes a day at a time to suit you. Click here for more details http://www.winonmarkets.net

 

Financial Spread Betting & Trading on the Ipad – Warning its real money not a game!

Vince Stanzione reviews the various Ipad and tablet apps offered by companies such as IG Index, Spreadex, City Index, Capital Spreads and Spreadex.

Don’t get carried away by technology. It’s easy to get blown away by all the great software, on-line trading, real time data, charts, iPad apps, business channels and bells and whistles.

The truth is, less is more, and information overload makes you a worse trader. The more complicated your system, the less chance it will work or that you will follow it.

The majority of technical trading indicators are a total waste of time, and you do not need to waste money on expensive trading software that claims to predict markets. The most important factor when trading any market is the price.

If the price goes to 50, 51, 55, 60, it is going up; it doesn’t matter what the indicator or news says or what you think should be happening. The price tells you the truth and should always be obeyed.

Trade with what you see not what you think. Yes, XYZ could be overvalued and at some stage you may be right, but the old saying “Markets can remain irrational a lot longer than you can remain solvent” is very true.

To learn more about financial spread betting go to www.winonmarkets.net

Financial Spread Betting – Exchange Traded Funds Tips 2012

Below you will see the best and worst performing exchange traded funds so far this year. I have not included leveraged or inverse ETFs also I have missed out some small ETFs that don’t have much trading volume most of the below trade at least 10,000 units a day.  An ETF can be bought or sold via a online broker and some of the larger ETFs also have traded options. You can also Spread Bet many ETFs, a company such as IG Index, City Index and Cantor Index will allow you to go long or short an ETF.

To learn more about making money from trading shares, using Financial Spread Betting and Traded options then go to www.winonmarkets.net

Exchange Traded Funds Spread Betting

 

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