Should you Buy Low – Sell high when trading financial markets? Here are some Trading tips

Should you Buy Low –  Sell  high when trading financial markets?

How many times have you heard financial experts tell you that to make money in the markets “you need to buy low and sell high” well that may sound like a good idea  but in reality the most successful traders do not  do follow this advice and infact buying low and selling high is the quickest way to lose money.

Vince Stanzione is a self made millionaire and has been trading and investing for 26 years and he gives these tips

Whilst everyone likes a bargain, it’s human nature, he does not make money from buying bargains. Cheap stocks often appear to be bargains after a large drop but they often continue to fall. Never let anyone tell you they are cheap and “can’t go lower!!” companies can remain cheap for years or eventually go broke

Its far better to buy a stock that is doing well and is in an uptrend and showing strength rather than try and be clever and pick a stock from the bargain bucket.  New highs can be filtered and identified with a simple charting package such as sharescope.

You do not need to be the first in or first out to make money – there is plenty to be made in the middle what I call the “white meat” leave the scraps to others.

Trade with what you see not what you think. Thinking in Trading can be an expensive luxury – you may think that a stock for example Netflix is overvalued and maybe you will be proven right eventually but if the stock goes from $50,60,$100,$200+ it’s in an uptrend and trying to go against that trend is a big mistake.

A final note, in financial markets we are always dealing in unknowns but what is known is the amount of money that is at risk, many traders spend too long thinking about how much they can make rather than what they can lose – with good money management you can control your risk so no one trade or investment will ever cause you to lose more than 1 or 2% of your total trading capital.

Want to learn how to but the odds in your favour and start making money trading and investing using a proven formula?

Vince Stanzione – has now launched a new course specifically for those based in the US to allow  YOU to trade and invest. Maximum Profits In Minimum Time is designed 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 26 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.

For US please click here

For rest of world please click here

 

How To Trade Shares and Exchange Traded Funds (ETFs) Using Financial Spread Betting

Financial Spread Betting or also known as Financial Spread Trading is sometimes thought of as a short-term business, in which bets are placed for a few days or even hours in search of quick profits. It is certainly possible to do well out of short-term spread betting but you shouldn’t overlook the possibilities of betting over the long term too, as there can be significant advantages over traditional share trading in terms of convenience and cost.

Spread betting involves less difficulty than share trading and it can work out More cost effective, because of the costs involved in buying and selling shares through a broker. You pay commission when you buy and sell shares (this might be £10 each time on a small trade, more for larger ones) and stamp duty of 0.5pc when you buy. These dealing costs can make a big dent in profits and increase your break-even point.

With financial spread betting, the cost of a quarterly bet is included in the spread and there is generally no tax to pay* (though you should check your tax situation). Because financial spread betting is leveraged – you are not buying the underlying shares – capital outlay is much lower than in traditional share trading. Think of it like a mortgage on your house, you get to buy an asset with just a percentage upfront.

vince stanzione financial spread betting IG Index share tradingThe Beginner's Guide to Financial Spread Betting: Step-by-step instructions and winning strategies

Short-term bets of a few hours or days can be a good way of taking advantage of sudden shifts in price. Many traders like to place short-term bets on market indices such as the FTSE100 or the Dow Jones, where movements are often the result of macroeconomic trends.

When betting short-term, it is advisable to keep a close eye on the way the market is moving, so that you can get out at the right time. Automated share price alerts make this easier and now most financial bookmakers such as IG Index have Apps which allow you to check prices on the go from your phone or iPad. Financial Spread betting in the longer term – weeks or months – allows you to take a view of the fundamental strengths of individual shares, without worrying too much about short-term price fluctuations. By using a longer dated contract you are not as focused on short term moves.

Spread betting is similar to share trading, although it is important to use stop-losses to help manage risk by limiting the amount of losses you can make on a single trade. When you place your bet, you specify a lower limit: if the share price falls to that limit, the bet is automatically closed and you will suffer no further losses. Anyone with experience of share trading can use the knowledge they have gained when spread betting. Also make sure you use money management and only place a percentage on your trading account on any one particular share.

For a small premium you could take out a guaranteed stop-loss. This removes the risk, present in very volatile markets. Your position will close at the level you set. With a guaranteed stop-loss, your risk can never exceed the chosen level.

With short-term bets, it is a good idea to set a narrow stop-loss limit, so that you are not caught out by a sudden market swing. With long-term bets you can set the limits a little wider – and the potential profits can be considerable.

*Tax laws are subject to change and depend on individual circumstances

Some of the advantages of Financial Spread Betting

1. There is usually no stamp duty or capital gains tax* to pay on profits

2. You can control the risks by using a device called a stop-loss

3. You can use your existing share-trading knowledge of the markets

4. Bet wherever and whenever, even when some markets are closed

5. You can open positions without paying full shareprice – through leverage

6. You can profit from falling share prices (going short) which is normally not possible with most stockbrokers

7. You can use Financial Spread Betting to hedge an existing portfolio

8. You can trade non UK shares just as easily, for example US, Australia, European shares all from the same account.

The Beginner's Guide to Financial Spread Betting: Step-by-step instructions and winning strategies Vince Stanzione Ig Index

Before starting financial spread betting it pays to get good training. Vince Stanzione

has been trading for 28 years and has produced a course called Making Money From Financial Spread Trading, to find out more just go to http://www.fintrader.net  

Trend Following How Great Traders Make Millions in Up or Down Markets

Many have heard of the Turtle traders or trend following, in this video Vince Stanzione explains more about how he follows trends and is able to make money in up and down markets. Vince shows clear examples taken from his Making Money from Financial Spread Trading 2013 course DVDs.

Trend following is an investment or trading strategy which takes advantage of longer term rising or falling prices (short trading). Traders who employ a trend following strategy do not aim to forecast or predict specific price levels; they simply get on the trend and ride it until at some stage that trend starts to reverse.  A market “trend” is a tendency of a financial market price to move in a particular direction over time. It can sometimes we call momentum trading.

If there is a turn contrary to the trend, we exit and wait until the turn establishes itself as a trend in the opposite direction. Trend following can be used by smaller traders using Exchange Traded Funds, Financial Spread Betting, CFDs and FX accounts.

Whilst Trend following tends to be associated with the commodities market the system can be used on shares, Fx, Stock indices and commodities. Trend following is ideal for those that don’t want to be watching prices all day. To learn more about Trend following and how Vince Stanzione trades and profits in rising and falling markets go to www.winonmarkets.net

 

Financial Spread Betting Tips & Strategies

What Losing Traders Do – Multi Millionaire Trader Gives You Some Priceless Pointers

Vince Stanzione has been trading futures, options and equities for around 26 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 he is 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.

“All through time, people have basically acted and re-acted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why formations and patterns re-occur on a constant basis.”

Jesse Livermore

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

Are you making money from Falling Markets? – Financial Spread Betting

Right now the media is having a field day talking about how stock prices are crashing and “billions are being wiped off share prices around the globe” yet what many do not realise you can also profit from falling prices and you don’t need to be a multi millionaire to do so. With the right training a small amount of risk capital and a financial spread betting or Contracts For Difference (CFD) account you to could make money.

Don’t take my word for it here is the exact email I received recently for Wayne Starkey. To find out more just go to www.winonmarkets.net

 

CFDs- Contracts For Diffrence using the Vince Stanzione program

In this Short video Trading Veteran Vince Stanzione explains how CFDs can be used with his Making Money From Financial Spread Trading Course.  Using a Contract for Diffrence CFD broker such as IG Markets, CMC Markets or Saxo Bank. Making Money From Financial Spread Traing course works on CFDs as well as Financial Spread Betting. Trading in Australia, Singapore. Profit from markets, FX, Commodities up and down movements. CFD demo accounts. Contratos por Diferencias. to learn more see www.indextrade.net

Spread Betting Tip: Don’t Get Married!

Millionaire Trader Vince Stanzione says that you should never get married to your position if you want to be a successful trader. A good trader should be happy to go long or short the same market or stock. Also sticking to the same share or market just because it’s been good to you in the past is not the way to profit. Many get stuck in to a losing trade “hoping” it will get better when the best option is cut and start again.

Also whilst just staying with one or two markets may sound good practice I have found it’s better to play the field and have plenty of options open to you. If you decide to trade just the Euro/$ or just the S&P500 there will be times when those markets are just not offering great trading opportunities but you can bet that other markets will be offering better risk/reward trades. My system teaches how to trade Currencies, commodities, world-wide stocks, Indices and Bonds giving you the most ways to profit.
to find out more go to www.winonmarkets.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.