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Editorial Contributor                                                                                                     ...
Editorial ContributorAre such trades based on technical or fundamentaltriggers? Is there a typical set up?                ...
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Vince Stanzione Spread Betting Magazine


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Vince Stanzione interview April 2013 Financial Spread Betting Magazine. Learn the secrets to financial trading adn making money from Financial Spread betting

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Vince Stanzione Spread Betting Magazine

  1. 1. A IT ED PR IO IL N The e-magazine created especially for active spreadbetters and CFD traders Issue 15 - April 2013A GoldMiningSectorSpecial We hunt for potential bargains amongst the rubbleDominic Currency Zak Mir TomPicarda - Corner - interviews Winnifrith’sA US tech Is it time Vince Convictionfocus to buy the Stanzione Trade forspecial pound? AprilAll your favourite columns including the chance to win £1000 in our Guess the FTSE month end competition
  2. 2. Editorial Contributor Zak Mir Interviews - Vince Stanzione Zak Mir She knew nothing about shares or markets, but she did know about profit margins, buying from the vs: I do not use one system, I would describe myself as the “Bruce Lee” of trading — I change flower market, having too much stock and so on. So and adapt, but at heart am a trend trader, although really her life experience was helpful when Interviews sometimes can be contrarian, and I also pay heed of trading stocks. I did a study on the most successful seasonality and sentiment. age groups, see: city/350636/Silver-surfer-traders-put-youngsters- in-the-shade ZM: You may not have just one system for taking Vince positions, but of course what kills many a trading ZM: What would you say that the minimum account is not the winners but the losers that outpace them. What are your key signs that you requirements are for successful trading — financial, were wrong and it is time to get out? Is it just a Stanzione knowledge, mindset, account size? matter of a certain amount of money, or are there other cues that tell you that the factors that brought vs: I think the minimum to open an account these you into a trade are no longer valid? Do you find it easy to take a loss — something which “bad traders” days is £20,000; it can and has been done on less, have great difficulty doing. This month Zak interviews self proclaimed but really that is what you should be starting with. Knowledge wise, really sometimes less is better than spread betting guru Vince Stanzione. more, my workbook takes the assumption that you have never traded before. Mindset? Really someone vs: Starting out, I hated taking losses, I would hold on and “hope” that those bad short term trades that does not get upset when trades don’t work out, would reverse, of course they largely became bad losing is part of the business and people that are not long term ones! I would cut the winners far too in a hurry to see instant results generally are moreZM: There are cynics out there (including our My experience is those desperate to make money profitable. quickly as we all like instant gratification. As I matured, I learned to do the opposite. I do havebeloved editor!) who suggest that those who can never do, that is why having a second income helps. a fairly mechanical exit, so if a trade is not makingtrade do, and those who can’t “advise”. Do youagree with this and are there any financial markets The majority of my students are over 50 years of age and are already fairly wealthy — I don’t deal with “Returns are also money and falls below a certain point it is cut and ingurus you follow or respect? the unemployed or last chance hopers! not evenly many cases I reverse a trade from long to short and then back again. I have done that a few times withvs: ZM: distributed, Netflix (NFLX) the last three years. I agree 90% of those who offer seminars, tipservices, advising etc. cannot trade or invest So you are effectively vetting your students before they start. Does this mean that the trading is not a job ZM:themselves and are getting rich off the “how to” demographic they represent have the best chance or pay packet where I have over the months interviewed several leading figures in the markets, whether trading forbandwagon. It can be argued that I fall into thatcamp as I wrote my first course on spread betting of winning in the markets? It clearly helps if they have been successful in their life to date, is that what you earn X a month, themselves or managing funds, and one thing hasin 1997. I was however already wealthy at that point, you are saying? some months you stood out which I did not expect. In general, it would appear they are successful at trading (a losing gameboth from other businesses and investing. Most ofthe people I respect are dead, but Ralph Acampora “Trading in an will make nothing for most retail traders) because they are exceptionaland David Tepper I follow today. incorrect way is or lose money, — either in discipline, IQ, knowledge or in most cases all of the above. In other words: just as they areZM: very similar to other months you winners in trading, they would be in business, the Much is said about trading for a living, but isit really worth it given the anecdotal evidence of a smoking. You get the will do very well.” academic world or probably in anything they put their minds to. Is there any point getting involvedfailure rate for most people of over 90% and so therisk reward ratio doesn’t stack up? What can those buzz from the Returns are also not evenly distributed, trading is in the market if you know you are not highly gifted?who do, in the face of seemingly insurmountableodds, decide to embark on this pursuit realistically occasional rewards, not a job or pay packet where you earn X a month, vs: I am very interested in people and psychology.expect to make? which keeps you some months you will make nothing or lose money, other months you will do very well. Anyone that is I made my first million from car phones by watching hooked on a path self-employed will know it’s not a smooth curve. I trends and what the yuppies wanted. I have no real formal qualifications. Yes, exceptional people, be itvs: I would never just be a full time trader; my which otherwise is think trading is like dating, if you are desperate for a date it shows and women don’t want to date a in sports, business, TV or trading are wiredexperience is that the more time you spend tradingthe more you lose. My style is trend trading and so I doing you little or desperate man! If you are desperate to make money, differently and in many cases have a different emotional make up. We don’t really care aboutcan be in a trade for weeks, months and even years.It means that I don’t have to watch a screen all day. no favours.” you overtrade making trades when you should do nothing and normally it ends badly. rejection or being wrong.I trialled a Bloomberg terminal a few years ago andgave it back as it was simply too much information! vs: Yes you are so right, success breeds success, not ZM: Can you describe to us your trading style/ ZM: You have been quoted as saying that your necessarily that they have trading experience. I will give system and why you think it gives you an “edge” main successes in the markets have not come from you an example: I had a lady I taught to trade that ran a over the markets? day trading, but more from what would be called successful florist shop. position trading / trend following. 56 | | April 2013 April 2013 | | 57
  3. 3. Editorial ContributorAre such trades based on technical or fundamentaltriggers? Is there a typical set up? “I believe we are in a glorious time, the US economyvs: Both, it is funny. The so called techniciansoften quote fundamental issues and I think they will power ahead Focus swings back and the Dow could onto the PIIGSshould be used together. My typical set up is a stockthat is either hated or loved and then I start seeinga trend change — Apple both up and now down is a easily hit 20,000 orgood example. 30,000+ in the next as the euro crisisZM: The impression given in the media is that 10 to 15 years.”you are something of a millionaire recluse who wassuccessful in the business world and then came to Europe is worrying, however, the demographics are very bad — too many older people being supported deepens. Do you:trade the markets. Why do you want to actually help by less and less youth. Turkey though is the outlierothers make money — shouldn’t people find out for as it has good demographics.themselves as you did? ZM: So you think issues such as the banking a) Eat less pork and considervs: My first business was set up at the age of 12 sector, the Eurozone and a possible bubble in China becoming vegetarian— selling computer games on tape. My dad was a will be resolved successfully? Arguably, the U.S. gothairdresser and wanted me to take over the us into the financial crisis in the first place via Subbusiness (looking at my own hair — no way!), and so Prime, and has kept us, economically, down with the b) Sell the Euro in expectation that theI got a job in FX as a junior in 1985 after I watched Fiscal Cliff — an issue which is still bubbling under Eurozone will eventually break-upa program on BBC2, it’s here on the net — http:// the surface? I thengot wiped out in the 1987 crash and started the carphone businesses. vs: Well if you read certain media, the world is always ending, so far the world has not (in factThen I decided to have another go at investing in wasn’t it supposed to on Dec 12th last year?!) and if1990/1991 (when I had money) and bought penny it does then you have nothing to worry about! Butshares such as Next at 11p via an entity then known seriously, humans are very resourceful and adaptive,as Sharelink. I opened my first IG index account in that is why we don’t use a typewriter or travel by1990 and I still have the account today (it’s a very horse and cart anymore. The times I have read thatshort account number!). But I learnt from others oil is going to run out, yet truth is we have plentysuch as Jess Livermore, Jim Rogers and Nick and cars are far more economical.Darvas, so why not pass my skills on? But you’reright, traders must make their own mistakes, it’s partof growing up in the markets. ZM: Here in the UK we have the possibility of the Scots leaving and the UK itself leaving the EU in 2017. Would you not be particularly bearishZM: Do you have a macro view on the UK / West- regarding sterling and also the bubble in Centralern Economy, and is it as grim as the 20 year Japa- London real estate? This, along with the regulatorynese Zombie economic scenario that many people issues in the City of London, give the impressionfear? Do you have any strong views on Gold, and that Zone 1 London may no longer be the “Monaco”especially equities now that they are back at multi style safe haven it used to be?year highs?vs: I believe we are in a glorious time, the US vs: Well a weaker sterling makes London Can you profit from your predictions?economy will power ahead and the Dow could property look cheaper, especially if you’re fromeasily hit 20,000 or 30,000+ in the next 10 to 15 Norway or Canada. Markets normally overshoot up and down be it property, fine wines, art or classicyears. The new shale energy and biotech/healthcarediscoveries are underestimated. I liked gold and cars, but then buyers and sellers regroup and prices Apply today at,platinum 10 years or so ago, but sold it all a few years adjust, basic demand and supply dynamics reassert.ago bar a few Canadian Maple leafs. I don’t own gold It is hard to predict if the UK would leave the EU, but I don’t see the UK turning in to some Third World great value for Spread Betting and as I think you can make more elsewhere. AlsoI don’t buy that gold is an inflation hedge, so are country. The UK is very respected in many fieldsstocks — you would have made more in McDonalds such as biotech, fashion & design, television, music & film, tourism to name a few, and these areas canthe last 20 years than gold. I do still own some bring a lot of money into the UK. Spread betting carries a high level of risk to your capital and can result in losses that exceedpalladium. your initial deposit. This advert should not be construed as investment advice. Capital Spreads is a trading name of London Capital Group Ltd (LCG), which is authorised and regulated by the Financial Services Authority and a member of the London Stock Exchange. 58 | | April 2013 April 2013 | | 59