ETFs – Leaders and Laggards so far- Using Financial Spread Betting

Whilst we are only 2 months into the year the trend in Exchange Traded Funds (ETFs) so far in 2014 has a commodities theme. The big winner  by far has been Coffee (JO) which is currently up 60% as the table shows. Coffee can be trading using a Financial Spread Bet, options or just buying the ETF. Whilst 2014 has  seen a great comeback for Coffee it has been a terrible market the last few years.

vince stanzione financial spread betting etfs trade2win

The other area coming back are Gold mining stocks, again whilst the S&P500 and Dow Jones was hitting new highs in 2013 Mining stocks had no such fortune. So far mining stocks which are correlated to Gold prices are looking better.

One sector which did great in 2012,2013 and so far 2014 is the Biotechnology sector with the IBB and XBI seeing great returns.

As a trader it’s important to track sector changes as it’s a way to see where money is flowing to and from. With Financial Spread Betting its possible to from markets moving up and down, you can also be long (bet on sector to go up) and other to go down, I cover this in Making Money From Financial Spread Trading 2014 edition. You can find out more here. www.winonmarkets.net

ETF Video

As stockmarkets hit new highs many are turning to Financial Spread Betting to profit

As stockmarkets hit new highs many are turning to Financial Spread Betting to back shares, Indices, commodities and currencies.

Welcome to the world of Financial spread betting. Every day, thousands, perhaps millions, of investors across Britain keep a close eye on share prices.

They want to know what has happened to the shares in BP they have set aside for their grandchildren. They wonder if their Vodafone stock is going to keep paying a healthy dividend, enough to fund this year’s holiday.

vince stanzione financial spread betting making money from markets

And they hope, keep hoping, that the banking shares they bought at what they thought was the bottom of the market are going to come good one day soon.

The most important part of the TV six o’clock news, as far as they are concerned, is the bit at the end telling how the FTSE 100 index closed.

And yet what relatively few of these share buyers do is spread bet. Perhaps they should.

Here is our beginner’s question-and-answer guide to this now well-established industry, one that is plainly here for good.

What is spread betting?

A wager on the outcome of an event where the pay-off is based on the accuracy of the wager rather than the simple result. It’s not just, it’s up (or down), I won. It’s, how much up (or down) is it?

An example, please.

Let’s take the FTSE 100 index. If you bet £10 per point that the Footsie will rise, and it gains 25 points, you make £250 (£10 x 25 points). But if it falls 40 points, you lose £400 (£10 x 40 points). The more the market goes in your favour, the more you make. Unfortunately, the opposite is also true.

That sounds a bit risky.

It is, or at least it can be. Spread betting is what is known as a “leveraged product”, which means you effectively borrow much of your stake.

That can be good — as you don’t have to find the money to cover all of your position —but also bad — because if you get it wrong, your losses can be large.

However, there are ways of reducing the risk. You can restrict your bets only to markets you know about, or ones that are less volatile. You can also limit the size of the stake and you can (and almost certainly should) use stop losses.

Okay, but what is a stop loss?

A stop loss is a way of limiting the amount you can lose on any single bet. You may decide you are only prepared to risk losing £100 on a particular trade.

At £10 a point, you would set your stop loss to close the bet at the level where you had lost 10 points, or £100 (£10 x 10 points).

So what can I bet on?

Pretty much anything in the financial markets including shares, oil, gold,silver,currencies and yes those famous pork bellies! You can also take positions in markets such as politics, sport and even house prices.

But why would I spread bet rather than just buy shares?

Although the losses can be bigger relative to the initial stake, the winnings can be too.

Also, as these trades are classed as a bet, the profits do not attract capital gains tax or stamp duty as they would if you had made the same trade by actually buying the shares.

You can bet on various markets without owning the asset, and you can also profit when prices fall, rather than just when they rise.

Right. I’ll give it a go. How do I  do this?

Let’s take the FTSE 100 again, which we’ll say is trading at 6600. A spread betting firm will offer you a spread on that market of say 5980 and 6630 (the spread is where the firm makes its profit). If you think the FTSE100 will rise, you “buy” at say £1 a point at the top end of the spread (6630).

If you think it will fall, you “sell” at the bottom end of the spread (5980). So let’s say you sold at £1 a point.

If you are proved right and the FTSE100 then drops to 5950, you make 40 points or, in this case,  £10. But if you are wrong and it climbs to, say, 6650, you lose 20 points or £20.

Anything else I should know before I get started?

It’s better to get some good training first and practice, Making Money From Financial Spread Trading by Vince Stanzione is a good place to start and offers a workbook, DVDs, website and great support all for £197 see www.winonmarkets.net

What about tax?vince stanzione says financial spread betting with IG index is tax free

Profits from spread betting are free from capital gains and stamp duty, unlike dealing in shares. They are also free from income tax unless it is the investor’s sole source of income.

In a nutshell, what are the advantages?

Potentially large returns on small stakes, though the opposite is also true.

Bets can be opened or closed during events, unlike when you bet on a fixed odds basis and have to wait for the conclusion.

The huge choice of things to invest in/take a punt on.

To find out more go to http://www.winonmarkets.net

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

Stop Making Excuses and Start Making Money Trading Markets

Its sometimes easy to get caught up in the negative headlines about how badly the economy is doing and all the problems in the Eurozone, yet the truth is as a Financial Trader these are glorious times and I see massive opportunities especially in the stockmarket. Against the doom many shares are hitting new all-time highs with areas such as Biotech, Technology and well known consumer products names.

Vince Stanzione says stop making excuses and start making money trading financial markets, financial spread betting offers ways to profit in all markets

You too could be making an extra income trading markets 15 to 20 minutes a day. Whether you’re a complete beginner or you trade the financial markets already, I’m certain I can help you make more money and give you an unfair advantage … REGARDLESS of market conditions.

To find out more just go to 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 Guide Video – Tips on Getting Started

Here is a short video explaining more about Financial Spread Betting.

Financial Spread betting also know as Financial Spread Trading has seen massive growth over the last decade in the UK and is a flexible and tax-efficient way to back anything from shares, currencies, commodities, Bonds, stock indices and even house prices. It is now possible to open a Spread Betting account within minutes over the internet with company such as igindex.
A big advantage of Financial Spread Betting is that it lets you gain exposure to the performance of key markets, without having to put up the full value of the transaction as you’re trading on margin you can also profit from falling markets which is not easy to do via a traditional stockbroker.

To learn more about how to trade then check out Making Money From Financial Spread Trading by Vince Stanzione by going to www.winonmarkets.net

The Beginner’s Guide to Financial Spread Betting

Vince Stanzione Euro Update

First Published in Growth Company Investor 22/12/11
Regular readers will know that I am not a fan of any (‘fiat’) paper currency, as history has always shown that eventually they all devalue. The term fiat comes from the Latin for ‘let it be done’, and every fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse.
Although Rome didn’t actually have paper money, it provided one of the first examples of true debasement of a currency. The denarius, Rome’s coinage of the time, was, essentially, pure silver at the beginning of the first century AD. By AD 54, Emperor Nero had entered the scene, and the denarius was approximately 94 per cent silver. By around AD 100, the denarius’s silver content was down to 85 per cent.
The emperors that succeeded Nero liked the idea of devaluing their currency in order to pay the bills and increase their own wealth. By 218, the denarius was down to 43 per cent silver, and in 244 Emperor Philip the Arab had the silver content dropped to 0.05 per cent. Around the time of Rome’s collapse, the denarius contained only 0.02 per cent silver and virtually nobody accepted it as a medium of exchange or a store of value.
Today, all major currencies are paper-based, with governments able to print money at will. Even the historically safe Swiss Franc has been pegged to the euro. For 2012, I would say the US dollar is the least ugly currency in a beauty contest. Remember when your trading currencies that you are betting on one country against another, so if the euro is set to weaken then the US dollar will strengthen.
I need not tell you the problems in the Eurozone as they have been well documented, but what I have not read much about is the demographic time bomb that is especially prevalent in southern Europe. Simply put, people living longer and families having fewer children means that the Eurozone is heavily skewed towards an ageing population, which is going to be a massive strain on governments.
You also have a culture of black economies (not just in Greece but also in Italy, especially the southern half, Spain and Portugal) where avoiding taxes and getting a bill with no tax or VAT is the norm. The Eurozone problems are not going to be resolved any time soon, and while we may get some temporary relief, I cannot see any other long-term solution other than to break up the Eurozone and devalue the currency.
So far, the euro has held up fairly well, but I believe 2012 will see a 15 per cent adjustment, with money flowing back to the perceived safe-haven US dollar. From the current rate of 1.35, that would see the 1.15 level reached for EUR/USD we last saw this level in 2005.
How to back a euro fall
You can look at a spread bet. I would go with a June 2012 bet with a relatively small bet and a larger stop to allow for short-term swings, say 1.47. Another way to back a falling euro would be a traded option. It is possible to buy a put option on the CurrencyShares Euro Trust ETF (AMEX:FXE).
You could look at a 1.20 strike for December 2012, which would give you plenty of time value. With a traded option, your risk is strictly limited to the premium paid. We also have inverse exchange-traded funds (ETFx), which go up as the currency goes down, such as the ProShares UltraShort Euro (AMEX:EUO), which will move 200 per cent inverse of the daily euro moves.
So to summarise, while I don’t like the US dollar long term, out of the EUR/USD I will take the side of the dollar in 2012 as money flows back to the safe haven currency and any notion that the euro is an alternative reserve currency are abandoned. Financial spread betting books Make money from Financial spread betting
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

Make Money With Financial Betting – Betonmarkets

What is Financial Fixed Odds Betting?

Fixed odds financial betting offers a tax free, flexible and innovative alternative to trading the financial markets. With fixed odds betting you can bet on the financial markets knowing exactly what you stand to gain or lose from the point you place your trade. This means you can never lose more than your original stake and you always know what you stand to gain. www.Betonmarkets.net  over bets ranging from £1 to £50,000 on a selection of popular financial markets including currencies, shares, indices and commodities.

A fixed odds bet is a bet which pays out a fixed amount if a predicted event occurs within a specified timescale. If the predicted event does not occur within the duration of the bet then all you lose is your original stake (again a fixed amount). The events that you can bet on are more varied with financial fixed odds betting than with any other form of trading. Not only can you bet on the market going up or down, you can bet on the market not going up or not going down, you can bet on the market staying within a range or not staying within a range and much, much more.

Financial fixed odds betting is the simplest way to trade the financial markets. The bets are flexible, transparent and easy to understand. If you’re not familiar with trading then fixed odds betting is a great place to start. If you’re an experienced trader then fixed odds betting will be a valuable addition to your investing armoury.