Want to know what separates the best financial spread-betters from the losers? Self-made millionaire trader Vince Stanzione supplies a few pointers and a video about how to make maximum trading profits in minimum time.
Say the price of a security moves to 50, 51, 55, 60, it is rising clearly. It doesn’t matter what the charting indicator says or what the news says or what you think should be happening, my belief is that the price tells you the truth and should always be obeyed.
Many new traders lose larger amounts of money trying to pick the top or a bottom, this is risky and is not required to succeed. Unless you possess the gift of psychic powers then you should stick to a trading system and don’t guess.
For traders of all levels of experience it can be easy to get blown away by all the amazing software, online trading, real-time data, charts, business channels, apps and bells and whistles. But the truth is that less is more, and information overload makes you a worse trader.
The more complex you make 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.
When spread-betting we are dealing in unknowns and a whole host of factors that are out of our control. One of the sure fire elements that you can control is the amount of money you risk on any one investment.
However sure you are that Security X or Security Y is going to soar, you must make sure you only invest a percentage of your trading account, so that should your bet not turn out as you expected you can still live to fight and trade another day. If you manage your money and do everything you can to keep your losses small and your wins big then you can lose more times than you win and still make money.
When I was a broker I had access to thousands of client accounts and could see how they traded. It was illuminating. The majority of people cut their winning trades very quickly but let losing trades run in the vain hope that they would turn around.
You cannot afford to trade and invest like this. If something is not working out as planned, cut it and get out. Taking a small lose now is less painful than taking a big loss later.
All too often non-professional traders want one of two options every time. Either they always just buy and go long on a market, while others are always bearish and want to go short.
A good trader should be natural and happy to trade markets either way. For example I may be long a stock for many months that is in an up-trend and then when it breaks that trend I will sell and go short, allowing me to profit from both up and down moves.
If you too want to make maximum trading profits in minimum time and profit regardless if the markets are rising or falling then visit www.55trader.com and put the odds in your favour.
Spread betting veteran Vince Stanzione has been trading for over 26 years and has produced a home-trading course at fintrader.net. He stresses that before you try trading it's worth getting some training
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Warning: Remember, particularly if you are new to trading in the stock market and in forex, that the prices of shares and other investments can fall fast and you may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. Also, the BullBearings free stock exchange simulation portfolios are a good way to practice trading techniques.
Thu, 1st Jan - * Factory gate inflation trailed off to a 1.1 per cent year-on-year rate of increase in April, according to the Office for National Statistics (ONS), versus a rise of 1.9 per cent in the month before.