Go back to Vince Stanzione's Corner - Main

When should you Spread Bet? - Chart all your Options

Vince Stanzione says that trends repeat themselves over and over again, so you just need to learn what to look for.

Markets are often bullish on the last day of the month and the first three or four of a new month, possibly because this is when people's pension contributions are invested by the fund manager, Vince Stanzione says.

Trends are repeated over and over, you just need to learn what to look for

The same holds true before market holidays in the US, including Memorial Day, 4th July, Labour Day, Thanksgiving and Martin Luther King Day, the third Monday in January, while September tends to be a good month to bet on gold.

Markets also often go up on Mondays and down on Wendesdays and Fridays. Find a source of market information that is easy to use and adapt (there are a number of charting sites listed on our financial directory section) and look for a stock that is moving Why? Because the spreads (the cost of the bet) tend to be tightest on shares that move and are bought and sold most. New highs or lows on a performance chart are a good sign. If the chart is moving upwards, look for a peak that is higher than for the last 12 months. Don't try to get in at the bottom of the market or to pick the top.

Your chart system may allow you to apply rolling averages to charts. If the share or index moves above the moving average, you can consider buying. If it moves below, close your bet, or if you are feeling aggressive, sell short - a bet that the index or share will fall further.

Try using 200-day and 50-day moving average together on the same chart, using the 200 day average for buy signals and the 50 day to close bets.

A chart is a picture of what the crowd is doing. You should never be the first in, and never the first out. This means that you won't make the maximum possible money out of a share price movement - you make your money on the bit in the middle, because its impossible to predict where the bottom is.

Trend lines - straight, sloping lines drawn between two or more prominent positions on a chart - identify the strength of the trend. A rising trendline drawn between troughs helps to identify 'price support', a level where traders will buy. A falling trendline between peaks helps to identify market resistance, a level where people will sell. The idea is to invest in line with the current trend until the price line breaks through it, or wait until the trendline is breached and then bet on a new trend.

YOU SHOULDN'T SPEND MORE THAN GBP500 TO ATTEND A WORKSHOP OR SEMINAR NOT EVEN IF THEY PROMISE YOU GOLD FOR ATTENDING

The "Ads by Google" are just ads and help support the free information aspect of this site. You'll have to do your own research to decide whether those companies are reliable or not.