Turn your dreams into reality

We are all seeking ways to get that extra money for a new sports car, dream holiday, second home or, maybe, to pay for a daughter's wedding.

Well I found it in 2003, Spread Trading (Betting), and I have spent most of the last 18 months looking at data, methods, software and back-testing the results until I was satisfied with what I had produced.

Now I am willing to share my researchs with you in the form of an e-book. You will learn what Spread Trading (Betting) is; where you can do it; what resources are available; how to understand stock charts and much, much, more

You may not think that you have the sort of money required to start trading, but you can start with as little as £100. However, please remember the #1 Golden Rule ... only trade with what you can easily afford to lose.

Betting? In the UK Spread Trading is considered a form of gambling, just like the Lottery or Football Pools, therefore, it is not subject to any form of Taxation. In addition, unlike normal trading on the Stock Exchanges, it is also exempt from Commissions, Stamp Duty and Capital Gains Tax

Please take the time to look through the other pages of this site so that, you too, will have the chance of creating financial freedom for you and your family. THANK YOU

What is Spread Trading (Betting)?

Well you have probably all done it before… because the best analogy is when you buy Foreign Currency for your holidays and change back any that you haven’t spent when you get back. You go into the Bank or Travel Agent and they will quote you a Sell rate of say... 1.43 Euros to the Pound. When you get back from holiday you go back to them to change any Euros you have left back into Pounds, and they will give you a Buy rate of say 1.55 Euros to the Pound. The difference between their selling price (1.43) and their buying price (1.55) is the Spread. In this case you would have lost money, but if the Pound had become stronger you could have made a profit. The same applies to Stock Market Spread Trades, you buy at one price and sell at, hopefully, a higher price. but... because, in the UK, it is classed as betting, just like the lottery or football pools, there is no tax to be paid on any of the money that you make.

Financial Bookmakers

There are a number of Financial Bookmakers to choose from, mostly based in the City of London. You can open an account with any (or all) of them with a Debit Card and just a few hundred pounds.

Some will open an account within a few minutes on-line, others may take 24 hours or so. They will check your details with one of the Credit Checking Agencies in order to conform with UK Money Laundering legislation.

The most widely used, and the one used for illustration in the book , is the IG Index. If you look at the opening page of their web-site you will see the most commonly traded markets and their current live prices (between 23:30 GMT Sunday and 21:15 GMT Friday)

www.igindex.co.uk

The Markets

You can Trade in most of the main Indices, Commodities and Currencies of the World, depending on the services provided by your Financial Bookmaker.

We will look at the Indices and the reason why is ..Volatility. For in order for us to study the rise and fall of shares, commodities, indices etc. there must be a good volume of trade to allow buyers and sellers to influence the market.

All Markets re-act in the same way, they go up and they go down. They do this on a minute-by-minute, hourly, daily, weekly, monthly, quarterly etc. basis.

Throughout this learning exercise we will concentrate on the London Stock Exchange’s FTSE 100 index. It, like it’s counterparts in all the other Countries and Continents, is based on the value of the top shares for that Exchange.

In the case of the FTSE 100, not surprisingly, that’s the top 100 shares; and in the case of the Dow in New York it is the top 30 companies.

Data & Charts

In order to study and learn how to interpret the markets you must study the data of those markets. End of Day (EOD) Market data mostly consists of at least five columns; Date, Opening, High, Low, Closing.

The most common way to representing the data is on a Chart of Value (Y axis) and against Time (X axis)

And the most common value to represent is the Closing price shown as a line on that chart (Y value) against the Date (X value). From this you can see the movement, up or down, of the market.

Indicators

An Indicator is a line, or series of lines, drawn on top of the data chart to help you interpret the underlying data and allow you to trade, or not.

There are probably as many Indicators, and ways of interpreting them, as there are Market Analysts. In the book we look at a number of the most common and the easiest to calculate.

Like Moving Averages, which ‘smooth’ the peaks and troughs of the raw data. We will also show you how they might be used in your Trades.

Software

You do not necessarily need to use any software, you can use a calculator, graph paper, ruler and pencil. However, some form of software will make your life easier.

EXCEL

Most people have EXCEL and some knowledge of its use. Many of the charts used for illustration in this book were produced using EXCEL. Data can be cut and pasted directly into EXCEL to form the basis of your own strategy for trades. The book tells you how to construct the data columns and also looks at some add-in templates, which can aid the process

Specialist Software

There are, of course, many software packages designed specifically for ‘charting’ financial markets. They ranging from a few pounds to many thousands of pounds. There are also systems which accept ‘live’ data as it happens on a minute-by-minute basis, although they are beyond the scope of the book, and are not necessary to trade on a daily rather than hourly basis.

Strategy Plan your Trade and Trade your Plan

In order Trade and be successful on any Financial Market you must have a Strategy.

It could be ...“I only trade on Thursdays, if its an odd day I BUY and if its even I SELL….” but I wouldn’t recommend it.

As with Indicators there are at least as many Strategies as there are Analysts, probably more.

The book will help you to develop your own strategy based on your temperament and life style.

Money Management

Money Management is important throughout our lives whether you are trading in the Financial Markets or not.

Controlling that money and making it work for you whether it is in a Pension, Savings Account or in a sock under the bed, should be one of your paramount concerns.

However, when you are Trading it is essential.

How much should you bet? You don’t want to be completely wiped out What sort of return might you expect? Should you Trade at all, at this time? What ‘stops’ should you apply and what ‘limits’?

These are some of the questions the book asks and helps you formulate the right answers for you