How Do I Day Trade the ASX Top 20 Stocks Using CFDs?Posed On March 27th, 2010

Ashley Jessen asked:




The most successful business people of our time all discovered very early on in life the importance of being able to leverage their time and efforts. When it comes to your personal CFD trading portfolio that same rule applies and in particular we’ll be looking at how it applies to the larger stocks like the ASX top 20.

Is your CFD Trading Business scalable?

Imagine operating a business whereby your upside potential is limited. You poor you blood, sweat and tears into the business only to realize down the track that your business cannot scale up along with the popularity of your product. Your CFD trading business is no different.

Your mindset needs to be ‘How would I be trading if I had $1 million under my control?’ and its with this mindset that eventually shapes your trading methodologies. With a $1 million trading float there is no way you’ll be trading the small cap stocks in the bottom 500 as you’ll be making the market and dropping thousands of dollars in slippage every month.

Instead you need to think like a hedge fund manager with over $1 million under your control. Liquidity is now of prime importance and so you need to be developing strategies based on the top 20 ASX stocks. Stretching it out to the top 100 could be on the cards but by focusing your efforts on the top 20 you’ll never run into troubles with getting in and out of those positions.

Analysing the top 20 stocks to locate your trading opportunities

One of the key differences you’ll notice about the top 20 ASX shares is that they aren’t as volatile and have smaller daily ranges compared to the more active low cap stocks. It goes without saying that a $70 stock has to do a lot more to move 10% than does a 20 cent stock. As a result your trading methodology for the top 20 will be slightly different and should look to take advantage of the fantastic liquidity presenting itself. This may mean you trade larger positions sizes for smaller daily to weekly moves.

By starting out at the big end of town you’ll find you can concentrate on fewer stocks, get to know them much better and develop a better intuition when it comes to trading them. By spending time here you’ll also get the mindset of the right position sizing methods to best achieve your trading goals.

Thelma

Cantor Index Spread BettingPosed On March 23rd, 2010

Adam Jepsen asked:




The popularity of spread betting is growing daily. People are becoming attracted to this field of investment because it provides an easy way to speculate on a range of financial markets such as shares, FX and commodities. Of course as with all investments there are risks involved.
Cantor Index spread betting is one such option for financial spread betting. Although, there are many trading options in the marketplace a trader needs to select the company(s) best suited to their needs. Cantor Index is a leading online trading website for financial spread betting in the UK.

Cantor Index spread betting provides all the advantages of tax free investments*, no broker fees, no commission and a wide range of markets. As with all spreads companies the betting duty is borne by operator itself, ie CantorIndex.

Being a part of “modern financial services group”, Cantor Index endeavors to be a leader in customer service. Their objective is to provide all their customers with high quality professional support. They aim to hedge all customer bets in the underlying market. They want you to win.
As with all FSA Authorised and Regulated spread trading firms, Cantor Index clients benefit from knowing that their funds are ring-fenced/guaranteed.

Some of Cantor Index’s spread betting services are available 24hrs a day (Monday to Friday).
Financial spread betting can be very exciting, it can also be an efficient product and should be considered by traders. Of course is won’t suit all types of investor.

When a client financial spread bets, they don’t actually buy or own any stock, bonds, commodities, shares or currency. They are simply speculating on the future value of the market. If you bet on the market going up, and it does, then your profits should be a multiple of your stake, otherwise your losses will be a multiple of your stake. Financial spread betting is not suitable for everyone because you can lose more than your initial investment. Spreads carry a level of risk to your money. You should always analyse the risks and benefits before spread trading.
Cantor Index lets you trade online and benefit from live prices and up-to-the-minute financial news. Whether you chose to bet online or via telephone, you will get instant pricing and immediate confirmation of your spread bet.

Courtney

Financial Spread Betting – New Way to TradePosed On March 19th, 2010

jamiehanson asked:




if you select a system for trading and don’t stick to the rules of the system, then trading can be quite tough for you. There are chances that you may finally go on losing all your cash and give up trading, just like greater than 90% of the traders do. Its quite tough to lose money and most of the traders continuously make and lose money and finally give up after a few years. However, financial spread betting system is a big help to the traders who constantly lose money as this system has been confirmed and experienced to show 160% profit from last 26 years and 1504% profit in last year itself! Here are some guidelines that make financial betting system a perfect and profitable system which helps you earn great profits yearly : – Stop thinking about bargaining: Though a lot of traders search for bargaining in financial spread betting system, however you cant do any kind of bargaining here. Always bear in mind, the vital lesson you get to know from a perfect trader, that “you get high and sell low”, and this is the genuine talent of thriving traders. – Never quit too soon: Another effective rule of financial spread betting that you must never leave if the prices touch the peak or reduce too low. Never try to guess as you are likely to lose your returns and thus finally face a breakdown. To be competent trader, you need to relp on big winner. – you wont find Fundamental or News related trades quite useful: Yes its a fact, only a minority of traders can actually make money this way in long term. The most intimidating effect of Fundamental Analysis is that you have no control on dangers. Suppose, you think the now is the best period to ‘buy’, but market drops further, and you feel the best time to ‘buy’ is this one, but again the market goes on falling, and ultimately, the conclusion may be that it wasn’t the correct time to ‘buy’. A thriving trader would judge that he was wrong in just sometime when the market was going down. – Just stick to spread betting system: This golden rule asks you to hold to spread betting system if you actually wish to be a successful trader. You just cant guess any particular trade as an unprofitable trade, might be you may lose a quite possibly profitable trade of the year. You should not guess about any trade if you use a system like this. It is quite sensible to gain a good opportunity and bear some loses. – Reduce your losses: Most of the trading systems often overlook to lessen loses and hence lose. Always remember, your winning trades must always be greater than your losing trades. – Never add in a losing trade: Usually, the traders go on pouring money in the trade they are losing thinking that they have reached the highest or lowest market limits. You cant however guess this and hence lose money. – Money Management: You should be able to analyze the amount of money you can place on every trade you do. But you never never take a risk of more than 2% on any trade. You can safely adopt the financial spread betting system as it doesnot involve stock purchase and thus a perfect system. While, online share dealing services permits you manage your personal portfolio at least costs. And an alternative of Financial spread betting is CFD trading-Contract For Difference. In CFD, both the parties to the contract are willing to pay the amount difference between the closing and the opening prices.



Anthony

Anyone Can Spread Bet The Financial MarketsPosed On March 18th, 2010

NICK MOSS asked:




For many years people have enjoyed a flutter on horse racing and other sports by going down to the high street bookies and placing a bet. A lucky few have made a few pounds doing just that.

But for a few years now some people have been betting on the financial markets with spread betting company’s and it is becoming more and more popular. Spread betting has quietly emerged as one of the fastest growing sectors of the entire financial services industry.

The advantages of financial betting

This can all be done from the comfort of your home or any  where in the UK (or the world ) as long as you have access to a phone or the internet.

Although there are many people doing this full time, there is a grate many people doing  it part time and making a lot of TAX FREE MONEY.

You need  very little time for this kind of betting. Most people only devote a few hours a week most just one hour or even half  an hour in the evening.

It is tax free. If you own shares in a company when you sell the shares you will have to pay capital gains tax. But when you spread bet the financial markets you do not own any shares but you are betting on  the shares, and  currently  ( for UK traders ) you do not pay any tax on your winnings.

There are lots of markets you can spread bet on.

As well as individual shares, you can spread bet on Indices, currencies,  interest rates and commodities.

You can start trading with as little as 50p a point (depending on which spread betting company you use). Although most part time traders would stake £1. To £3. A point or £5. To £10. a point you can start with 50p a point and increase your stake as you get more and more experienced.

Leverage is a big attraction to spread betting. It provides investors with a degree of gearing. This means that relatively large amounts of money can be won with a fairly small outlay.

You do not need any experience or knowledge of the financial markets.

A lot of people start in financial betting with no previous experience of the financial markets. It is very easy to pick up what you need to know as you go along. Also, you do not need any qualifications.

Many of the most successful city traders have no qualifications.

You do not need a lot of money to make a lot of money  because you can use leverage.

If you have a computer with access to the internet you will find it invaluable to access financial information but it is not essential for trading the financial markets. To start with all you need is a telephone.

You can do all your trading over the phone with financial bookies and with most financial bookies you can trade on line if you wish, and most have much more than just the trading platform on there websites. Most spread betting companies (financial bookies) also provide you with market news, charts and much more.

Whether you trade by phone or online you will need to open an account with a financial bookie. (you can open more than one account if you wish). There are two different kinds of accounts to choose from. Cash account or credit account. With some financial bookie you can open a cash account with as little as £100. But with some you would need £5,000. So to start with it would be better to open an account with a bookie who only require a small amount to open a trading account. 

 

Financial spread betting is fast be coming the investment vehicle of choice for many investors and traders. It is a derivative product, meaning that traders trade a price that is derived from the underlying asset, rather than owning the actual asset itself. Dividends are not paid and you do not get any voting rights but there are substantial benefits that underpin why this form of trading the financial markets is so popular.

If you would like to learn more go to       http://njmmarketing.webs.com/

 



Virginia

Learn Some Technical Details About Spread BettingPosed On March 12th, 2010

OJ Samson asked:




The first thing you should take into consideration when starting to spread bet is that your money is involved which automatically raises the stake for you. Therefore, as money is at the basis of your existence and even part of your happiness in the modern society, you can to invest some time in getting informed on how to win more and not lose what you have. Therefore, you need a few strategies and you need to have some tips to guide your choices and your decisions.

Probably the easiest kind of assistance you can have with spread bets comes with the spread betting software you can find on the market. With this software, things are a lot easier for you because it does almost all the job, anticipating different situations and also teaching you how to make the best out of a particular situation on the market you are spread betting on. “The Market Prophet” is such a revolutionary piece of software, being very popular among spread bettors all around the world.

Spread betting has two systems at its basis, one of them being the fundamental analysis and the second one being the technical analysis. The former insists on the idea of assessing data related to a certain company or commodity and works with balance sheets, price rations and so on, while the latter focuses on the market price and on statistics to anticipate a certain movement of a certain instrument.

You can also find a lot of tips even on the Internet about spread bets and you can also read books on this topic, the first rule with this activity being to let go of your greed because it will only lead you to losing your money instead of winning more. Also, you must remember that the better you are informed, the lower the risks you have to deal with and the greater your chances of winning some extra money. Of course, sometimes luck is needed, too.

Bill

Trading Platinum Using CFDsPosed On March 11th, 2010

Mike Estrey asked:




In our daily reports, we comment on the background and outlook for the gold price, but from time to time we refer to other precious metals. One of these that can be traded using CFDs is platinum, and various contracts are available, as well of course as companies with interests such as Johnson Matthey and Aquarius Platinum, which have long appealed to stock market investors.

The metal itself

As gold is rare than silver, so platinum is around 35 times rarer than gold and is less widely found. Its main exploration areas are South Africa and Russia, and then Zimbabwe, Canada and South America.

Less than 90 tonnes of platinum are turned into jewellery, compared with 2,700 tonnes of gold, and it takes eight weeks and ten tonnes of ore to produce an ounce of platinum, against three tonnes mined to produce the same amount of gold. The current price (as shown by the January 2008 CFD) is $1401 per ounce, which is very close to an all time high.

Uses of platinum

Platinum has several unique properties which have led to its increasing industrial use, as well as for jewellery. It is found in the automotive, aerospace, electronics and chemical industries, most notably in catalytic converters, where Johnson Matthey is a world leader.

It also has major uses in medicine, as it is not affected by the oxidisation reaction with blood. It has excellent conductivity, and is compatible with living tissue, making it ideal for use in pacemakers.

Its density makes it more durable than many other metals, and is extremely inert, being resistant to heat and acids with a melting point of 1,768?C.

From a jewellery standpoint, the metal does not wear away, and although it can scratch, this is simply a displacement of the metal with no volume lost, which is not the case for gold.

Despite its super strength and density, platinum is highly pliable, and one gram can be drawn to produce a fine wire over a mile in length.

The outlook

Platinum is enjoying a major bull market in line with the rest of the precious metals sector. The usual supply demand arguments apply, with the long lag in developing new mine capacity being one of the main reasons why the sector is expected to continue to be rerated, as well of course of the simple rarity value in a world of expanding demand.

From that demand point of view the outlook remains extremely positive, and the three biggest markets are now China, Japan and North America.

The bridal sector is an important market for jewellery, as in Japan platinum is still used in almost all engagement rings and over 80% of wedding rings. In the USA, platinum’s share of the bridal market was non-existent twenty years ago, but is approaching 50% now.

Fuel cell technology

There has been a dramatic interest in fuel cell technology mainly as a result of increasing concerns about environmental degradation. Fuel cells do not burn fuel, which eliminates the air pollution associated with fossil fuels.

Almost all prototype fuel cell vehicles are powered by the proton exchange membrane fuel cell, which uses platinum as the primary catalyst, and all major automobile companies have expanding fuel cell programmes.

Demand is so far quite small, but the expectation is for gradual medium to long term growth, first in stationary fuel cells and later with the commercialisation of fuel cell vehicles.

Eileen

Spread Betting PreviewPosed On March 10th, 2010

Mark Boyle asked:




There are various ways of betting & certain companies have different methods with platforms to suit. Spread betting allows you to buy or sell movement & is a great tool for leverage.

If you think a market is going to move in a certain direction you can buy or sell in the way you think the market will move.

There are scalpers & short term traders, who basically are in the market for a very short time & try to make a profit on breaking news, which usually causes a price spike & an ideal time to try & take a profit from the market & there are medium to long term traders who looks for a pattern or trend to develop before getting involved & usually have charting software & study moving averages over a certain period of time.

With spread betting you stake how much you want to risk per point of movement & is a better way of making money, than psychically buying shares in a company.

How much you want to risk is entirely up to the individual, but it should always be a small % of your betting bank (2 – 3%) & that is why you should always have a stop loss in place, to protect your bank.

There are various markets to trade in – Stocks, Commodities, Bonds, Interest Rates & Currencies, it is important to choose the market you think will be suit your personality & stick to it & try to specialise.

The spread is the difference between the buy & sell price & is the small commission the betting company takes, for placing your trade.

Choose your spread betting account wisely, try to specialise in a market, develop a strict betting methodology, risk only a small % of your betting bank & never lose your discipline.

Danielle