Making Money From Financial Spread Trading 13 Pages

Sample pages www.thefintrader.
net

Making Money From
Financial Spread Trading
By
Vince Stanzione

Sample pages www.thefintrader.net
Making Money From Financial Spread Trading
COPYRIGHT & DISCLAIMER

The publisher and author of this document specifically disclaims any liability, loss or risk
incurred as a consequence of the use or misuse, either directly or indirectly, of any
information or advice presented in this document.

This document was sold on the basis that no guarantee of earnings was given. Trading on
financial markets is speculative and you should not trade with money you cannot afford to
lose. No financial advice is provided by the author.

The purpose of this workbook is to provide a balanced and informative view of investing in
stocks and derivatives via a financial bookmaker.

The workbook is for educational purposes only and Vince Stanzione and his agents do not
recommend particular stocks, bonds, options, derivatives or securities of any kind. If
particular stocks, commodities or indices are mentioned in this workbook it is for illustrative
and educational purposes only.

Although we have used our best efforts to provide the most accurate and innovative trading
strategies, we cannot promise your future profitability and do not promise verbally or in
writing that you will make a profit from trading futures, stocks, options or derivatives.

Vince Stanzione and his agents are not in any way liable for your activities or trading
resulting from information obtained from this manual, website or DVD.

Ultimately all investment decisions are made by you. Use only capital that you can afford to
lose.

© Vince Stanzione, 1998 to 2010
2010 EDITION

Vince Stanzione, 494 Midsummer Boulevard, Central Milton Keynes, MK9 2EA

Resale or re assignment of this package
This document has been sold on controlled and limited basis only. If you wish to sell or re
assign this package then please contact us first.
Table of Contents
Preface – £100 on Threadneedle Street – To multi millionaire 6

Introduction to this course & Trading Markets 14

Why use a financial bookmaker ‐ Breaking down the establishment 19

Trading on Financial Indices – Beyond the Dow and FTSE100 25

Placing a stop loss, controlled risk bet – How to sleep at night 31

Different types of orders – make the brokers work for you 33

The Basics of an Up Bet 36

The Basics of a Down Bet 37

Trading Currencies – what I learnt as an FX Dealer 39

Trading Commodities – whilst many laughed ‐ I made millions 47

Trading on Individual Shares – A great place to start 54

Shorting a share – How to make a Killing on the downside 56

US & Global Share Trading – It’s a BIG world 57

Trading Sector Indices and Exchange Traded Funds 59

Trading on Interest Rates 63

Property Futures and Mortgage Spread Trading 65

Options Made Simple 68

Making money from a sideways market – Dull can be profitable 72

Fixed odds Financial Trading & Digital Options 74

Winning Fixed Odds Strategies 78

Can small bets lead to big gains? 82

The power of Compounding how I made my first million 83


Part 2

Making Money with Trading Strategies – Keep It Simple Stupid 86

Know your ABC’s – Market Trends 89

Making Money with a Moving Average – The right way 94

When to Buy and when to Sell without guessing 96

My Trading Rules 97

Example trades and tips on using my system 102

How to know if bad news is coming before the crowd 106

Data, data everywhere but is anything worth using? 107

The internet and how to get the most out of it 109

The Golden Rules of Financial Spread Trading 116

Profiting with Support and Resistance how to read the crowd 118

Other Chart formations – The few worth following 123

Money Management and the Exit – what everyone forgets to tell you 125

Chart breakout – Trading New High or Low – You paid how much! 130

Trading 26‐ 52 Week highs and lows – buying high and selling higher 131

What Losing traders do – what I learnt from working as a broker 133

The secrets to my trading – What I wish I knew 20 years ago 135

What the financial bookmakers don’t what you to know 138

Opening an account with a financial bookmaker 139

Summary to Financial Spread Trading 142

Glossary of terms 144

Further reading 150

Terms and use of this package 153

12 month Trading Log 155

Technical Trading quiz answers (from DVD quiz) 159

Trading Check list 160

Slides used in the DVD 161

Preface

Thank you for purchasing Making Money From Financial Spread Trading.

This workbook which has been licensed for your personal use together with the DVD and access
to www.thefinancialtrader.com gives you access to a very powerful trading system.

My name is Vince Stanzione. For the past 23 years, I have been trading financial markets. I have
worked for various banks and brokers in the City of London, both in Equities and Foreign
Exchange.

For the last 18 years I have successfully traded my own money as well as teaching others how to
trade. This has given me the freedom to live and “work”, if that’s the right word, from anywhere
in the world, with no boss or the usual hassle that normal businesses face.
During my career I have traded millions of dollars both for my previous employers and with my
own money, using financial instruments such a futures, options, warrants, swaps, CFDs and in the
UK, financial spread betting.
Breaking down the establishment – Out with the old and in with the new

Until around 10 years ago it was very difficult for private clients to use the same strategies as the
large banks and financial institutions. Many of these strategies would require you to lodge large
deposits and take risks which you or I would not want to take.

Most clients would be encouraged to just buy shares or mutual funds and engage in buy and hold
type of strategies. Thanks to the internet and Financial Trading Companies, the money making
“club” is now open to everyone, regardless of where they live, what they do for a living or how
much they earn.

With nothing more than a trading account and internet access, the financial markets today allow
you to take on and beat the financial big boys at their own game. Just think you can be sitting on
a beach and still be trading, because many PDA’s such as the iPhone and mobile phones are
powerful enough to trade from.
The workbook not only draws from my 23 years of stock market experience both as a city trader,
stockbroker and a private trader but from over 100 years of stock market research, notes and
tried and tested trading systems that go back to Charles Dow (as in Dow Jones) from 1896.


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My Background

Before we go forward let's go back a little. My first share trade was placed in 1985 and I can
remember it as if it was yesterday, STC (Standard Telephones & Cable), I bought £500 worth, and
the share went nowhere and I phoned my poor broker every hour for a price. I became bored,
sold it and a few years later STC was taken over by Northern Telecom.

At that time working as a trading room junior earning the vast sum of £5,200 per annum, before
tax and train fares. Working in the city was not glamorous and as a 16 year old junior I was
treated like dirt, many would have given up but I persevered. Within 6 months most juniors quit
or were sacked, most of the people that had started at the same time as I had gone within the
first 6 weeks. My career started at 52 Threadneedle Street, London, The World Money Centre
owned by Nat West Bank.
When everyone else had gone home I would use the banks computers to programme and test my
ideas. At that time we used mainframe computers that needed a whole office to house them,
skilled operators to keep them working and an IT budget bigger than the GDP. of a small country
to buy them. Today your £499 PC from any high street retailer does about 100x more and faster.
As for money today, I earn more than £5,200 on a bad day, and a good day can make anything
from £20,000 to £50,000. My name which is not that common can move a share price in London
or New York just by the fact that I am a buyer or seller. Institutions, bookmakers and
stockbrokers queue up to do business with me and call me “Sir” when 20 years ago the same
firms would not give me the time of day. I continue to trade my own account, advise a few
offshore funds and teach a small amount of new traders.

The workbook you are now reading to a certain extent is a helping hand from someone that has
learned the craft the hard way. While some may think that I produced this course just to make
some more money I assure you this was not my primary motivation.
I am not going to say that I am some saint or charity worker (although I do give a fair amount
away) and of course I have made an extra income from publishing this information but the real
reason was that I wanted to give the new trader a chance to beat the greedy banks, brokers and
bookmakers.
While everyone who works hard is entitled to make money and become a millionaire or multi‐
millionaire if they wish to do so, I feel that at some point you have to play fair. When financial
bookmakers, brokers and data vendors can spend millions on political donations, sponsorship
(with no commercial benefit), excessive parties, private boxes at every major sporting event,
offices with the finest Italian marble, yachts at the Monaco Grand Prix at US$1 million per day
hire, while they screw every penny out of small traders, then something sounds a little unfair!
The reason I give you a little background is to understand what can be achieved and the sort of
person I am. I do not have a degree, any formal qualifications and I have never had what most
would call a normal job or background, to many I am a social and academic drop out, yet by the
age of 26 just 10 years from placing that first STC trade and earning £100 a week, I had well over

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1 million in the bank and no debts so I suppose I must have done something right along the way.
By 36 I was a multi millionaire.
Everything I have achieved is thanks to my own hard work and perseverance.

And as with every successful trader or business person I have met over the years I have had my
fair share of ups and downs and started again from scratch after the 1987 crash. Most traders
have been broke at one stage or the other, working in dead end jobs to get some trading stake
back together again. Show me someone that has achieved phenomenal success in anything in life
without some hardships along the way?
Can I take someone with no trading experience and teach them to trade?
If you asked me this question in 1997 when I wrote the first copy of this course I would have said
yes I am sure I can, in 2009 I can say I know I can. Why so sure? Because 12 years on and a filing
cabinet stuffed with testimonials, trading statements prove what can be done.
The majority of these success stories had never traded a share, option or spread bet in their life,
the few that had previous trading experience or had attended other courses were all break even
or losing traders before they converted to my way of trading.

As for my students their backgrounds range from Indian restaurant owners, Dentists, Florists, Fish
& Chip shop owners, jewellers, doctors, housewives, London Black Cab drivers, Harley Street
Heart Surgeons to name a few.
I have also shipped workbooks to every corner of the globe including most of Europe, British
Virgin Islands, Russia, Mozambique, South Africa, Australia and places that we couldn't even find
a postage rate for. So if your dream is to trade from a deserted Island, it can be done.
The concept of taking “city outsiders” was not new, in 1983 C&D Trading ran an advertisement in
the Wall Street Journal for individuals who would be willing to learn how to trade futures. C&D
was owned by Richard Dennis and his partner William Eckhardt. After an interview process they
selected a small group which became known as “the turtles.” They were taught for 2 weeks (see
note) and then given money to trade based on what Dennis had taught them. The turtles name
came from a trip to the orient taken by Dennis.
Upon visiting a turtle farm they felt they could grow traders as easily as they did turtles. The first
group was so successful a second one was started in 1984 until the program ended in 1988 by
which time Dennis had made $120 million on his share of the winnings.


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Note on turtle course: I have the full original coursework that was written by Richard
Dennis. While some claim to sell this work on the internet, it is not the same course.
The full course whilst using some simple rules is not user friendly. I have incorporated
a few of the turtles tools in my own trading and you will find them in this workbook.
Also some of the turtle success was based on loop holes in the commodities trading
markets, which have long since been closed.
Many of the turtles still run very successful hedge funds today. Some of you may have read or
heard about Curtis Faith who was the youngest at 19 he made over $31.5 million, Liz Cheval
manages over $100 million, Jerry Parker has made millions both as a turtle and with his own
fund.
In an article written about myself in The Independent on Sunday entitled ”How one man brought
spread betting from the city trading rooms to the suburban living rooms.” The journalist
commented on how bookmakers and brokers were still so anti anyone who came from outside
the city square mile.

Does everyone make money?

Of course not, we would be in big trouble if everyone made money. Your first lesson is that:

Trading is a ZERO SUM GAME, someone has to lose for someone to profit.

Sorry win‐win does not work in this business, it is dog eat dog. If you decide to buy or bet on
1,000 shares in IBM someone has to sell those shares to you, you always have to have two
parties.

Someone will gain from someone else's losses. Fortunately in the trading world everyone does
not have the same opinion and that is what makes a market, I may think that the Dow Jones
Index is going up today, you may think it is going down.

Making money is easier than keeping it
If you have read my book, How To Stop Existing and Start Living, you will know that as well as

trading and running various businesses I am a great student of human behaviour and psychology I
advise you to take a look at this fascinating subject, it affects everything you do in your life and
most importantly it's what drives the world stock markets, so you need to know some basics
about how humans think and act.


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All trading whatever it may be, the stockmarket, the art market, property market or classic car
market, are driven by two elements GREED and FEAR. The reality and facts have little or nothing
to do with the stockmarket. The last few years has seen one of the biggest bull markets in my
trading history thanks to the great DOT COM and telecom boom and the equally spectacular melt
down, both of these presented me with very profitable opportunities and once you have studied
this course you will know how to do the same when the next boom and bust comes, and I assure
you it will because in the words of the great trader Jesse Livermore:

“There is nothing new on Wall Street or in stock speculation. What has
happened in the past will happen again, and again, and again. This is
because human nature does not change, and it is human emotion, solidly
built into human nature, that always gets in the way of human intelligence.
Of this I am sure. ”
As well as providing a very profitable trading period, 1998 to 2003 has also provided an excellent
learning period of how greed and fear works and I will share some of my findings in this
workbook. In 2008 The exact same pattern re occurred in the Oil markets.
Nasdaq Comp. (NAS:IXIC) Index

5000 5000
4500 4500
4000 4000
3500 3500
3000 3000
2500 2500

2000 2000

1500 1500

1000 1000
27/9/95 Jul '97 Jul '98 Jul '99 Jul '00 Jul '01 Jul '02 23/10/02

www.sharescope.co.uk Chart (c) ShareScope
Nasdaq Greed and Fear at its best?

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Dollars 1 day candles Crude oil (Light Sweet) Composite (NYMEX:CL) Commodity
140 140
120 120
100 100
80 80
60 60
40 41.35
400 Volume (Daily) - th's 400
4/10/06 '07 Apr Jul Oct '08 Apr Jul Oct 25/2/09
www.sharescope.co.uk Chart (c) ShareScope
Looks like a pyramid, this is how all booms and busts look.
A more recent example in the Oil market

By the end of this course you will know exactly how to make money from the upside and the
downside. You will also know when to cut and run before the reality hits the public.

Has anything changed from that first trade in 1985?

Everything has changed yet nothing has changed. During the run up to the 1987 stock market
crash I was a private broker so I had a good sense of how the public were trading and acting. In
1999/2000 I was holding a small amount of one day financial trading days which gave me contact
with private traders again, and guess what had changed?

Absolutely nothing. Sure the internet, computers and business channels were not readily
available but the truth is that contra to the media marketing machine hype, most traders are
worse now than they were back in 1987. For many traders Real Time quotes and hyped business
channels are a disaster. Chat Rooms, Blogs, news paper tips and super technical trading charting
packages have led to massive losses. My view is that technology has just speeded the whole
process up.
Where do I start?

When entering into a new business it is easy to become overwhelmed and the initial enthusiasm
and excitement can turn in to confusion and fear. My advice is to start at the beginning and take
it one step at a time, don't be in a hurry to learn everything in one day.


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Enjoy the journey as in many cases it is better to travel than arrive. For many traders that made
large amounts of money in the markets over the last few years, some of which you may have
seen press cuttings for, the money in my opinion came to quickly and easily and as you can guess
in most cases departed as swiftly as it came.

You may have heard the old saying, “You can eat an elephant if you take one bite at a time.”
Worldwide Users

This Workbook and its strategies can be used regardless of where you live. Whilst I will
concentrate mainly on Financial Spread Betting the principles and the system can be used with
different trading accounts and products so don’t worry if you’re based outside of the UK or a
country that does not offer Financial Spread Betting. You can use Emini Futures, CFDs, margined
FX, Covered Warrants or trade via an online stockbroker.

How this workbook is divided
Section 1
While some of you may have read about spread betting or even tried a few spread bets, I would
advise that you start again from scratch and take a clean and fresh approach. If you are new to
this then that's great, you’re starting from scratch already. Section 1 concentrates on how to
place trades, what markets you can trade on and the general background information you will
need.
As well as the mechanics I also give you many examples and do's and don’ts. So please go
through this section carefully before rushing in to the actual trading system and trading
strategies.

Realise that although bookmakers publish vague information on how to place bets and a few
copy cats have tried to publish information on spread betting from a theoretical view, most
people that think they know how to place a spread bet really have no idea how it works.
Section 2
Once you have a good understanding of how to place trades, stop loss orders and a general
background you can follow the exact rules that I use to trade and how you can start to select
winning trades within minutes.

The workbook is complemented by my website which you will be given a password for and the
sample copy of the charting program Sharescope, which will allow you to test ideas on historic
data.

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While you are under no obligation to buy this or any other software package I have looked at
many charting packages and for ease of use and value for money, Sharescope wins hands down.
The current price is £79.95 to purchase the software and £18.00 per month for data updates, it is
a fraction of what many charge. Even if you do not want to buy it then use the working demo as it
is an excellent learning tool.
Section 3
You will find copies of my presentation used in the DVD which came with this package and the
answers to the trading quiz shown on the DVD.

To summarise, take your time to go through this course, enjoy the process and build up your
trading. The world financial markets have been around for hundreds of years and they will be
here for many more to come.

You have every chance to succeed in the financial markets, I know this course works and my
trading system works because unlike others I use it myself. And while it could be possible that a
system works for a few months or years in a roaring bull market I assure you that hundreds of
years and back testing to 1960 is no flash in the pan system.
As Theodore Roosevelt quoted, "Far better it is to dare mighty things, to win glorious triumphs,
than to rank with those poor spirits who neither enjoy much nor suffer much, because they live
in the gray twilight that knows not victory, nor defeat.”

Wishing you health, wealth and happiness,
Vince Stanzione
The first and original Financial Spread Trader
To read more and order the package please go to www.thefintrader.net

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COPYRIGHT & DISCLAIMER

Making Money From Financial Spread Trading

Making Money From Financial Spread Trading

Making Money From Financial Spread Trading

If you have read my book, How To Stop Existing and Start Living, you will know that as well as

Making Money From Financial Spread Trading

Making Money From Financial Spread Trading

400 Volume (Daily) - th's 400

Making Money From Financial Spread Trading

Making Money From Financial Spread Trading

To read more and order the package please go to www.thefintrader.net

Making Money From Financial Spread Trading

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