[Le Moor]

Maybe we can use this thread for anyone interested or already trading in the equity markets, to discuss OR learn.......

[Le Moor]

Well unfortuanely i never hit target but did ater a few days of prediction bank 150 points. I will demonstate at some point, exactly how by moving your stop loss you can lock in profits. The DOW has since lost some 450 points which once clear of 10,400 provided another opportunity to short the market. We are now clear of all major supports and the the market is downtrending. I never normally look at fundamentals as im a chartist however what with volitile oil prices, Americas possible 25 basis point interest rate rise next week, and a possible slowing US economy it all makes for interesting analysis. Im pretty fraustrated as i want to get this thread going with some basics to grasp but refuse to on this damm MAC so have to wait.

[Le Moor]

Had the market been shorted as i suggested in the previous post we would have had a maxuim of approx 300 points profit. Giving a total profit since i started this post of 450 points.

Now thats fine posting it here but in reality it is a little different as one has to hold their nerve in losing postions etc. Plus the timing of knowing when to take profits is essential. Especially on the 1st trade the market has moved some 260 points since then and had our positon not been cashed at a profit we would be this much (260 point)in a loss.

The market over the last few weeks has shown classic signs of support turned to resistance. Support of the market is a optimum level whereinvestors accept that the market is fair value andBUY up the shares. Resistance is the opposite. Its the optimum level where investors accept that the market is too expensive and SELL shares.

These two graphs are of the same DOW Jonesat different time frames. (basically are zoomed in/out) They show in one graph how the index(Dow Jones) was supported at 10,400 approx.first then became resistance at that level once broken. Then tested 3 times which confirmed the resistance. (lower graph)

[Le Moor]

Do bear with me and refer back to thread as i will attempt to simplify the basics. Also to explain the terminologies used such as shorting the market.

Shorting has a similiar concept as buying shares at a low price and selling at a higher one for profit.

Instead its selling at a higher price 1stand then buying back the same stock at an even lower price for profit.

eg.If i sell you a car for £500 today and i buy it back 2morrow at £250 how much profit have i made.?

Answer £250.

Its unlikely this example would occur but one would be if you told me you wanted a certain price for your car (£250) and i wanted to buy it but had no cash. I then agree to sell it for you. I sell it first (£500), knowing that next week car prices are going to fall dramatically because of a new law. Thennext week i buy it back £250. Then pay you your money(£250). Then keep my new car worth £250 all be in Assests.

So short selling is selling before purchase takes place and speculating a market will drop so you can profit at a later date.

Financial Bookmakers allow you to aquire stock to sell first without purchasing. This is how it is possible to make a profit if a market falls and you have speculated on it.

[Le Moor]

[align=center]Workshop SessionOne[/align]
Thanks to the presence of financial bookmakers such as Financial Spreads and IG Index it has been possible now for some years to trade on financial markets in a relatively small way, with the the minimum of fuss and no need to have a specific account with an actual futures or commodities broker.

Although the services of financial bookmakers have been available for some years, the problem is few have written about financial trading in simple easy to understand format.

Although the bookmakers produce their own handbooks which are good as a technical reference, they do not address many of the important issues that you must know before you start trading. Bookmakers have also been arrogant and have tended to do business with a select few in the past, however they have now started to become more user friendly.

Lets make it clear, financial trading is an extreme high risk way of investing or speculating. The purpose of this thread is to introduce those with the correct aptitude to an activity which could potentially earn them thousands even millions. It could however also lose them that much as well- this never should be forgotten. Having said that I can and will show you how to ensure that you always know what your maxium loss on any one transaction will ever be, so you will not get any nasty surprises.

Finanacial trading should only be started with a small amount of capital that you can afford to lose ( £350-£1000). You do not use your savings or remortgage your home. Small amounts can go a very long way so this risk is adequate. Bookmakers offer credit facilities but i highly recommend a cash account to start with where you only trade with what you have on account.

Financial book makers are in it to make money. The are regulated in such a way that they do not give advice on which companies or markets to trade, but they will help with questions on how to trade markets. They are mainly male when you ring up and some are quite rude. However do not be intimidated this is just how they are. Remember you are the one calling the shots with your money. You are the one who says buy or sell. There is also the option to trade online therefore eliminating the need to talk with a broker.

Probably only 5% of people who try this business are really successful. Extremely wealthy. They started out the same as anyone but learnt the basics, stuck to the rules and developed their skills. There are some incredible stories out there.

You must love and enjoy this business.Would you enjoyreading economic news, watching CNBC, Bloomberg. Would you enjoy attending training courses, reading books and website material. This is what you need to commit to in order to learn this activity. Treat it as a hobby, but one which could secure your future.

[Le Moor]

[align=center]Session Two [/align]

[align=left]Why use a financial bookmaker? The simple advantages of financial trading are[/align]
[align=left][/align]
[align=left]No income tax payable

[/align]
[align=left]Tradingwith a financial bookmaker allows for tax free gains. HM customs and excise recognise the transactions as bets and therefore liable to betting duty currently 9%(i think) which is paid by the bookmaker and not you. Of course laws could change in due course but i doubt it.

[/align]
[align=left]The ability to trade in amounts less than standard market contract sizes

[/align]
[align=left]When you trade with a bookmaker youre effectively betting and not buying or selling a contract on the actual market(conventional share dealing), this means that you dont have to bet the exact contract size.

[/align]
[align=left]Example: If you trade the FTSE Financial Futures through a futures broker you must trade in the actual market size which is A LOT, one lot=£10 per point on the index. Now when you bet with a bookmaker you can have any size of bet subject to the min/max bet size, at present with Financial Spreads you can bet 50p a point min.

[/align]
[align=left]No commission or stamp duty

[/align]
[align=left]A financial bookmaker does not charge commission like a stockbroker, futures or commodity broker, they do however quote a larger spread. For example they may quote the FTSE100@ 5000-5007. That basically means the price is 5007 to buy and 5000 to sell. So as soon as you place a trade you would be 7 pointsin the redif you closed your trade immediatedy without the market moving at'll. Its within this initial spread difference that the bookmakers profit is built in. Hence they profit regardless if you win or lose.

[/align]
[align=left]The ability to trade outside normal hours

[/align]
[align=left]A very powerful facility that is often overlooked is the fact that you can trade on a market through a bookmaker even though the official market is closed. At present IG index is open 24hrs a day from Sun night until Friday night.

[/align]
[align=left]Small clients welcome

[/align]
[align=left]If you phone a typical London based futures or commodity broker and try and open an account with £2500 you will be poliitely told to go away. To open an account at present you need at least £10,000 and even then you could not trade all the financial markets you could with a bookmaker. So unless you have around £25,000 to risk its either a financial bookmaker or nutin folks. Currently with financial spreads their min deposit size is £100. So thats all you need to get going. Go to http://www.finspreads.com and get familiar first with the website. Look around see the different markets on offer and different indiviual shares you can trade as well. Come back and ask questions but at this stage just investigate further.[/align]

[Joy]

umm.... did someone ask you to give all this information. as i am wondering why you are giving this information. and basically the markets are so volatile at the moment unless you really know what to do, stay away and basically Le Moor the stock market is at the beginning of a bear market ( which means for those who dont know, that there are more sellers than buyers therefore you wont make money easily) save your money.

Peace

[Le Moor]

EDITED

[Joy]

Le Moor wrote:

Joy wrote:

thanx!!

why?

umm...

go on then elaborate as i know you want to niceone.gif

umm....

I also appreciate that financial trading is no easy way to become successful. It is not a route to success without its risks. But then show me one that is easy and show me one that doesnt invlove risk. carry on....


T