How to profit from Hot Commodities and when they turn Cold
Gold has recently been in the news with its large fall however the commodities market is far more diverse than just gold. With Financial Spread Betting for CFDs it is possible to back many commodities to go up or down for example you could back Natural Gas to go up and say Silver to go down. Many are put off from trading commodities but the truth is they are not as hard to trade as most think. The system I outline in my bestselling course Making Money From Financial Spread Trading works just as well on Commodities as it does on FX and Shares after all the main concern is the price and trading Cotton, Canadian Dollar or Citicorp really makes little difference. Also commodities are normally traded in US$ however with spread betting you can trade in a different base currency for example GBP or Euros.
Also many new traders tend to forget that you can make money on falling prices as I have just done with Gold, with spread betting you can go short so you sell first at a higher price as 1600 and then buy back at a lower price 1500 so you profit from the fall.
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
I am sure you have noticed the price of Oil and in turn Petrol (Gasoline) is heading up again to prices not seen since 2008. Whilst most are moaning at the pump you too can profit from this markets.
Vince Stanzione says Oil prices to Soar learn how to profit from Financial Spread Betting
If you can spare just 15 minutes a day I can show you how to profit from financial markets such as Oil, Gold, Silver and others. You don’t need to be glued to a screen all day and my step by step system tells you when to get in and more importantly when to get out. My system gave a clear buy signal on the 2nd February on Oil and that trade is still running. Of course at some stage we will get a sell signal and we can also profit from falling prices.
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.
Norway is rich in resources – particularly oil and gas. In this article, Vince Stanzione explores the Nordic country in more detail
Norway is a small country with a population of about 4.8 million bordered by Sweden, Finland and Russia. You don’t hear much about this country apart from maybe the Eurovision song contest which they won in 2009 and hosted in 2010 or around Christmas time when Norway sends a Christmas tree to the UK as thank you for the help that British army gave Norway in the second world war, but don’t be fooled by this quiet county it is a commodities rich powerhouse.
Norway’s fortunes turned when oil was discovered in the North Sea in the late 1960s. Today Norway is the third largest exporter of natural gas, the fourth largest exporter of oil and the second largest exporter of fish in the world. The country consistently ranks high in many global rankings, such as Global Competitiveness Index, Human Development Index and its population have one of the highest living standards in the world with top healthcare and schools. The unemployment rate currently stands at 3.5% the lowest in the OECD.
Some of the reasons to invest in Norway are:
Norway is a surplus country. The budget surplus last year was 11% of its GDP. The Norwegian Krone is in my view the world’s safest currency. Whilst Norway has a good relationships with Europe it is not part of the European Union and nor will they ever join. Norway’s interest rates are currently 2% and are decided by its own central bank, the Norges Bank.
Oil and natural gas accounts for about 25% of the GDP. With oil back near $100 nobody is complaining in Norway. Surplus oil revenue is saved into a sovereign wealth fund that is the second largest in the world with assets of over NOK 2.1 Trillion. Unlike the UK Norway did not squander its petroleum wealth by wasteful spending. The Norwegian government still owns 67% of Statoil (NYSE:STO)
Sound banking system. Norwegian banks are highly regulated and did not get involved heavily in the sub-prime mess. The banking industry also represents just 2% of the country’s GDP (take note Ireland). The largest bank Dnb Nor is 34% government owned and bank customers also own a large share.
One company which stands out and I have been buying is fertilizer and chemical maker Yara International (listed in Oslo: YAR) and is also available as a spread bet with most firms. The Norwegian government own 36%. The company was founded in 1905 as Norsk Hydo and then Yara was demerged in 2004. Yara is the number 1 in Ammonia, Nitrates and NPK complex fertilizer the company stands to benefit from higher prices. Yara is on a P/E of 11 which is much lower than its US listed peers. Whilst the shares gained 40% in 2010 they are still 30% off the 2008 highs.
Global X FTSE 30 Norway ETF (NYSE: NORW)
Global X recently launched an ETF to tracks the FTSE Norway 30 Index. Companies that make up the index include Statoil ASA, 18.82%, DnB NOR ASA, 13.58%, Telenor ASA, 10.76%, Royal Caribbean Cruises Ltd. 6%, Yara International, 5.86%, Seadrill Ltd., 5.71%, Norsk Hydro, 5.31% and Orkla ASA, 4.48%
You can also look at the OBXEXACT:NO which is the Norway Index ETF listed in Norway in Norweign Krone
If you’re looking for 100% overnight, then Norway is not for you but if you’re looking for a 10% to 12% a year return in a fairly safe environment then Norway could be for you. Statoil (NYSE:STO) is currently paying a near 4% dividend and I look for a year end price of $27 giving you a 20% return.
Vince Stanzione has produced a home-study course to teach private investors how to benefit from trading financial spread bets and fixed odds. For more details visit www.fintrader.net
Vince Stanzione gives a rare interview and explains how he started out and made his fortune and gives some hints and tips on what you traders can do to increase their success in today’s fast moving financial markets.
Jim Rogers appeared on Bloomberg Television in Singapore a few days ago. Whilst Bullish commodities as usual he did also mention a few of his short trades. To learn more about how to trade commodities,shares, currencies and more please go to winonmarkets.net
Here is what he said:
“The world is running out of known reserves of oil. It’s a simple fact.”
“Saudi Arabia has been lying about their (oil) reserves for decades,” said Rogers. “The reason oil is going up is the world is running out of known reserves of oil.”
“In bull markets things go to prices which nobody can conceive of. I’m the bull, and I’m telling you, at one point I’m going to sellout and then they’re going double again. In the bull market in stocks, who would’ve thought that CISCO would have gone up a hundred times. It did. That’s what happens at the end of a bull market and that’s what’s going to happen at the end of the bull market in commodities. It’s still several years away.”
“Gold will go to $2000 in this decade. It’s pretty simple as far as I’m concerned.”
“Silver will certainly go over $50. The old high on silver was $50. Silver will go to new highs again. All these prices are going to go to absurd levels by the end of the decade, by the end of the bull market.”
“Huge bull market in agriculture. Agriculture prices are still extremely depressed on a historic basis. You know, the price of sugar has gone up 600% in the last 6 years, 5 years. It is still 50% below its all time high. 50% below its all time high. The scope for price increases in agriculture is staggering.”
“In a bull market I don’t want to be short or to avoid anything when a secular bull market is taking place. I will hedge myself by shorting something. I’m short emerging markets, for instance, right now. I’m short NASDAQ stocks, for instance, right now. So in the bull market you dont want to avoid. You want to own everything, even the ones you think are bad, because that’s where the great gains are, and you hedge yourself by shorting or selling something else.”
“I don’t know what’s going to happen to the world economy. I know if the economy gets better, I’m going to make money in commodities. If it doesn’t get better, I’m going to make money in commodities because they’re going to print money, print huge amounts of money. But I need a hedge and that’s why BBVA and Citic and I have come up with this new index.”
“You see what’s happening to agricultural prices. You see what’s happening to oil prices. You see what’s happening with metals prices. This has got a long way to go and that’s the major shift that’s taking place.”
“I own some dollars now because there was a big panic, a huge drop in the dollar, and I stepped in and I bought some more dollars. I do sometimes like to buy things when they collapse. Sometimes I get it right. Sometimes I don’t. Sometimes I lose money. But at the moment I own some dollars.”
Don’t feel you have to trade all the time Multi Millionaire trader Vince Stanzione says “Only gamblers bet on markets every single day. Sometimes the best trades are the ones you do not make. Trading can become addictive both for losing traders who want to get even and winning traders who are now on a roll and want to take over the world in 5 days!
The Tortoise And The Hair
Markets have been here for years and they will be here for many more to come. As already stated, the best trades are trend trends where a trade is entered long or short and is left to run with the trend.”