Happy Christmas

Here’s wishing everyone a very Happy Christmas and may the new Year bring all of your wishes.

I will do a full update of this last years trading after the first week of January and as promised let a few more students into my trading course.

Whatever you are doing this Christmas, have a good one and enjoy yourselves.

DOW Moves Higher

The DOW Moves Higher

If you had read my post on 26/10/18 I gave you my views on where I thought the DOW might be heading over the coming weeks and months. I said that I expected the DOW to move higher.

This was my own personal analysis from reading the daily charts and taking in to account the midterm elections.

There was no inside information or indicators in use here.

My analysis was mostly based on basic price action.

The DOW had seemed to hit a stubborn support level and I had expected the price to rebound from this level… which it did.

The price then moved up, back down to the support level and back up again, forming what you may call the start of a head and shoulders chart pattern.

You could also add into my trading decision that the seasonality bullishness was also a factor.

Overall though, whether you claim it was price action trade or a combination of factors, it still made for a good trade if you were trading either by spread betting or buying ETF’s via Schwab.

The Dow moves higher

You Don’t Need a Crystal Ball

The main point that you should take from the above example is not that the DOW moves higher… it is that practically anyone can make an informed decision with a good degree of accuracy on which way the market is likely to go, just from applying the simplest of price action theories.

You really don’t need anything other than your support and resistance levels and some basic candle patterns to hand.

You certainly don’t need the news channels or forums to gauge whether the DOW moves higher or lower.

Simple Strategies Work Best

You’ll know from reading my posts that I favour the simplest of trading strategies.

The only indicators I use with any degree of regularity are moving averages and the MACD.

I am not one for reading a chart with dozens of indicators here there and everywhere.

When I’m reading a chart and looking for an entry point, I will often use price alone to make my decision.

Sometimes I’ll use a moving average crossover. Sometimes I’ll use a MACD. And sometimes I’ll use a combination of all three.

But even if I were using all three indicators to make my entry, my chart is still very simple and my strategy clear and basic.

I often stress this point to students that email me asking what I think of this indicator or that indicator… my answer is always/often the same… I have no idea as I have never used them.

Learning to Trade

If you want to learn to trade then you can read some of my trading strategies here, here and here.

My spread betting course is still currently closed to new students. However, I will let a few more in at some stage in January. So if you want to join, please make sure that you are on the waiting list.

Trading Strategies – Don’t be a one Track Pony – Diversify

Trading Strategies

You all know that my trading journey started with Vince Stanzione.

But most of you probably only see Vince as a one track horse so to speak. You see him selling his trading system and assume thats it, that’s all he has to offer. However, that’s totally the wrong picture.

Trading Strategies

You see, successful trading takes more than one approach. You need to diversify your trading strategies so that over time you profit long term.

If and when you are encountering a losing run with one strategy, you’ll often find that another area of your account and portfolio is working absolutely fine with one of your other strategies.

When I really started to make good money [for me] from trading, was when I started to listen to Vince’s advice on using a range of different strategies.

I was no longer tied into just spread betting. I started to trade longer term by buying stock and ETFs. I started to use seasonality strategies and trade the indices more. I learnt other little strategies from Vince  to use that added to my results over time.

My Trading Systems

I also developed my own various trading strategies to use; strategies that suited my shorter term trading fascination.

These strategies were developed so that I could trade in a way that could make extra cash on a monthly basis; rather than waiting months and years to reap my rewards.

In fact, my trading system that I launched and SOLD OUT of this year included four strategies for spread betting the markets. The idea being that you can learn more than the one strategy to maximise your earning potential over time.

I am also going to add another couple of strategies for my students to use before January 2019

Some of the money I make over the short term is reinvested into Vince’s longer term advice. Some is spent enjoying life.

It All Starts with Your First Step

But building up your trading strategy know how and indeed profits, doesn’t start at any other place than at the bottom of your personal ladder.

You’re not going to make it happen by staying stuck on the fence.

You need to take action, learn a handful of strategies over time and then rinse and repeat.

Yes, start with just one strategy. That makes perfect sense. But don’t become a one track pony. There are more than one very profitable ways to trade the markets.

It’s Not Always a Perfect Start

Many people claim that you can’t make money from the stock market. But that is obviously not true.

How is it that people like Vince Stanzione can do it? How can I do it?

Well, the biggest fact is that when we lose money, it is not a crisis where the attitude becomes negative.

New traders that start out trading and lose money go on to fear the markets. Their losing caused pain, albeit emotional, it still hurt.

This loss of money and the ensuing pain was enough to keep them from trading the markets again.

So they now say things like, trading the markets are a waste of time and money. Or, you’ll never make money from  the markets. It’s always something along those lines.

If any of them actually got over the pain of their first losses then they might well have gone onto realising that the losses were all part of the winning game.

To Recap

Don’t put all your eggs in one basket. Learn one strategy well to start off with, but don’t be shy to add to your trading arsenal.

You probably won’t ever hit the heights of winning trade after trade in your trading career, but that doesn’t mean you’re a failure or that you can’t make money in the markets.

Diversify and look to trade a handful of solid strategies over time.


What’s Happening to the DOW

What’s happening to the DOW? And the markets in general at the moment…. Well they’re down… that’s all.

Looking at the chart of the DOW over this last year you can clearly see that it has been choppy to say the least.

However… that doesn’t mean we are in for the worst.

What's happening to the dow

From the highs in January 2018 to the low a month later, when it [the DOW] seemed to be in free fall, we then went on and saw a complete recovery to the January highs at the beginning of this month October 2018.

Now what we are seeing is another correction before the markets start to head back up after the midterm elections.

You can also clearly see that the price has perfectly retracted from the January high; this has given us our resistance level/line.

Our support level has been formed at the low points over the year, as you can see; the trend line is still up.

Well that is my theory of what’s happening to the DOW from reading the charts and knowing of the pending US elections.

It’s Not a Straight Line Up

Remember last year, the DOW just seemed to be going up and up. Well it doesn’t keep going like that. There are always ups and downs. Just avoid reading the news and keep to reading the charts.

If we look at the 2015/2016 DOW chart then we can see a similar pattern.

The DOW Chart

The price has hit highs from the start of 2015 and made a low in the August 2015 and then recovered slightly.

We then hit lows again at the beginning of 2016 [January and February] for the price to move up 10000 + points over the following couple of years to date.

What do you think everyone was thinking in January and February 2016? Not much different to what they are thinking now.

DOW up

Opportunities Both Ways

Also, you don’t just make money when the markets are going up. You can short the markets going down with little spread bets. Even using small 25p and 50p per a point can give you decent returns.

If you made on average £75 a week [7.5% with a £1000 bank] then you could double your bank every few months. So even the small guys can get the chance to trade and become a success over time.

Just dodge listening to what the newspapers say and learn to read the charts properly.

Don’t buy into all the doom and gloom. The guys in the know will call the shots way before the newspapers do. However, if you’re not following any of them, then you’ll never know either way… so don’t sweat it.

What’s Happening to the DOW 2019

If you want to know what’s happening to the DOW on a regular basis then the master of reading the DOW is Vince Stanzione.

His advice is phenomenal. At the moment he certainly isn’t hitting any panic buttons so we can be pretty sure that the markets will pick up again.

Scalping Trading – Fast Profits?

Scalping Trading

Can you make money from the markets by scalping trading? If you don’t know what scalping the markets is, it is when you are in the markets for short periods of time and you look to take a small amount of points profit out of each trade with limited liability.

Recently I have been looking at a how you can make money from scalping trading the DAX.

Although this is not a strategy I have used before, I was interested to see if I could find a way to make it profitable.

If it was or is indeed profitable I wanted to create the strategy in full and add it to my member’s area.

Is Scalping Trading Profitable

Well, if we are looking over the last few weeks of my practising then yes it may be. However, as said this isn’t something that I have practised long term yet. But the theory is most certainly positive.

I have been monitoring the DAX with 30 minute candles to look for scalping opportunities.

I have used simple price action to look for entry points.

The entry positions I have found [sometimes opened a trade] have been mostly profitable.

I used a 2/1 profit loss strategy meaning that whatever the stop loss was, then I’d only take profit if the target of 2 x was met.

So if my stop loss was 20 points my target was 40 points.

So far this has been working well.

One of the downsides to this strategy that I can see at the moment is that you will need to pay close attention to the markets whenever you are looking to find a trade.

This means checking the chart every 30 minutes; although you can easily set a timer to remind you to do so if you are on the move.

On the up side, once you have found and entered a trade, you can walk away from the position. You will either win or lose [obviously]

The really good thing about this type of trading is that you are stacking the odds in your favour.

If you only ever get half of your predictions correct, you will make a profit over the long term.

This is because you are setting yourself up to earn double the amount that you could ever lose.

The only other downside that seems visible is that you will never be in on the large moves… but scalping trading is not like that anyway. You are in and out the markets very quickly overall.

Back Testing

I will do some detailed back testing over the coming week and will also look to keep finding trades as I go.

I will do a detailed update of my findings soon after.

At the moment though, scalping trading does look doable… although it may take some effort as in time wise to find the trades.

Moving Average Strategy

Moving Average Strategy

The moving average is by far the most common of all technical indicators that you will see used on charts by professional and retail traders alike.

A Moving average strategy is easy to use and add to a chart, but they can also give you some of the simplest trading signals to act upon.

However, although the moving average may give out some easy and stress free buy and sell signals; with a little bit of further basic chart reading, your moving average system or strategy if you prefer can become a finely tuned trading master piece.

In this tutorial we are going to be looking at how you can trade the DAX using a triple moving average and some simple chart reading.

The results and obviously profits over time can be greatly enhanced by putting in a little bit of extra effort.

If you are serious about learning to trade the markets then my advice to you is to learn to trade one particular strategy that suits your strengths and learn it well.

Moving Average Strategy

The moving average strategy that we are going to cover here today can be adapted to suit your own style, goals and markets.

We are going to be trading on the DAX with a triple Exponential [EMA] moving average 20,50,100. We will not use any other indicators.

So we will be looking to trade the triple moving average crossovers but also the 20/50 crossovers if they are above or below the 100 and are in sync with the main trend direction.

To give us a greater edge of a successful trade, we are also going to be looking at using some simple price action within the strategy and also the use of support and resistance lines too.

The overall idea is that combining some of the most useful but simple chart indicators along with basic price action chart reading, the complete trading rookie will be able to trade profitably with a little practice.

Why use Moving Averages

Moving averages smooth out the prices that you see on a chart. This smoothing of the price data can help give you a clearer picture of what and where the price on a chart is heading.

Combined with the ability of producing crossover signals when using multiple moving averages, you can understand the reason why the moving average is so commonly used.

You have to remember though, that the moving average is a lagging indicator. This means that the data that the moving average offers you is delayed.

However, when you use a moving average along with some price action and S&R levels, you get a pretty reliable trading strategy.

If you are interested in learning how the moving average is calculated then you can read about it here 

Using Price Action

We are also going to be using so simple price action techniques that will help us identify better entry points to open our trades.

Price action is one of the most effective ways to trade the markets.

The beauty of using price action along with moving averages is that the moving averages are alerting you or have already alerted you to a possible trade. You will now find it easier to identify the price action at key areas by identifying common and reliable candle patterns.

Price action trading when used to confirm moving average signals makes for an awesome trading strategy that can be used on most charts.

Learn One Trading Strategy Well

Many traders fail to make a system or trading strategy pay because they are too preoccupied with trying to learn too many trading strategies at once.

They move from one system to the next and even try trading multiple systems at once… without ever mastering any of them!

Using our trading system detailed here, can be a great place to start learning a solid trading strategy that can then be tailored further to your own personal trading style, strengths and weaknesses.

Maybe you’ll prefer 4 hour charts? Maybe you’ll add a couple of different indicators? Whatever materialises on your journey as a trader is great, but learn the foundations first… and learn them well.

The Trading Video

Here is the video that will show you how to start trading the DAX with 30 Minute candles, price action and an easy moving average strategy.

Take some notes as you go along as this will help when you start to paper trade rather than keep watching the video.

Please give us a thumbs up on Youtube if you like it.

Chris is doing the video as always but you can email me if you need any help.

Moving Average Strategy Basics

As already said earlier on, there is nothing complicated about this strategy at all.

We will be using…

20,50,100 Exponential Moving Average

Price action candle patterns

IG Charts

Alerts set using the IG platform

And that’s all.

16 Personalities – What type are you?

16 personalities

Here’s a really great personality test that you can take. It’s fun, amazingly accurate and can even help you with your trading.

16 personalities is like taking a quiz about yourself. You simply answer the questions that they ask and you are presented with your personality results.

This isn’t some dodgy new website that has no track record. 16 personalities has been around a long time and their feedback is amazing.

The one thing you have to do though, to make this test work for you, is this… BE HONEST.

There is no point in taking the test if you can’t answer the questions truthfully.  Just because a question you are asked rubs you up the wrong way, you can’t tell fibs to your computer just because it will make you feel better. Be honest, or you’ll just cheat yourself from the final results.

How can 16 Personalities Help You Trading?

Well, like this. You think you know yourself right? Some of you might, but most of us are only listening to our egos when it comes to being honest about the person that you really are.

No one likes to be told that they’re wrong, especially when it comes to our image. Our image is largely based on our own personal ego and ideals about ourselves.

Your ego tells you you’re great, amazing clever… weak, unconfident, stupid. But it will never really tell you who you are or what you are capable of. That is the nature of much of our self-talk, our ego voice is often heard and is often wrong.

Your Ego Mind

Imagine that you were learning to trade a certain strategy or system; it had awesome reviews and can most certainly make you money. However, you just couldn’t get on with it and make it work.

Your ego then pipes in… you’re stupid! Nothing you try ever works. You’ll never do it. And so on.

Luckily that is rarely the case. Unfortunately though, many of us believe the self-talk the ego gives us.

But, if you had an accurate understanding of the type of person that you really are then this could help you in and on all levels.

OK, the system or strategy you tried may not suit your style; it might be too fast, to slow or whatever. But knowing who you are deep down without listening to your ego berate or inflate you can really help in situations like this.

If you have a clear unbiased script of your own strengths and weaknesses, you could easily use it to help find a more suitable trading strategy… plus it can also be very useful in many other areas of your life.

You can try the test here, it’s free and totally awesome.

I’m Back from Holiday and Back to Blogging

blogging v trading

Ola… I am officially back at the blogging helm as of today.

I had an amazing rest over the holidays and I do feel rather revitalised.

Blogging v Trading

Running a blog is actually far harder than it is to trade.

Trading for me means doing very little in all honesty. I open a position and that is more or less it. I either buy the stock and hold it, or spread bet a position that I will check once every evening [if that].

Blogging on the other hand takes many hours of work. This is especially true if the content is going to be in depth and over 1000 words.

I enjoy blogging though and I’m looking forward to writing some great reviews and trading strategies for you in the coming weeks.

I have had a lot of requests about joining my spread betting course. For those that didn’t get on, you can be assured that I will open the doors again at some stage. Although this is not going to be anytime soon, I imagine it to be January and if not then it will be the following January 2020.

Information Service

This is something that I wanted to offer this year. However, the FCA seem to be cracking down on all areas of the trading zone.

Someone I know who is very well known in the trading field, recently received advise that they needed to go and train and get a qualification so that they could continue to blog and give trading tips as such.

Ironically, I can personally and safely tell you to go and lump on 500K on Shakhtar Donetsk to win the Champions League. That’s NOT a tip at all so please don’t do it! I’m just stating the facts of what you can and can’t advise someone to do with their own money.

Anyway, I will not be offering a separate members information service at the moment. I will however keep posting interesting trades to my spread betting students.

The Year Ahead

I’m looking forward to racking up some nice profits trading along with Vince Stanzione for the rest of the year and Spread Betting currencies also.

If you are looking to start learning to trade, try out paper trading with one of the trading systems I have written and also make sure you are signed up on the waiting list if you want to get on my course when I release it again.

As said, I’m back at the helm after my holidays so drop me a line if there is anything I can help out with.


The Longest Summer Holiday Ever

Summer holiday

I hope you have all been enjoying the weather. For once, the UK has had a summer to remember.

I have totally and utterly been making the most of it.

It has been during this summer holiday that I have decided to take a little bit of me time out and just relax.

As we all know, it is not every year that the UK basks in such glorious sunshine.

I have just been enjoying everything that you can do when the weather stays fine and that has also meant doing as little as I can work wise.


As most of you know, I have been blogging non stop for 7 years now and to be honest it has been nice to take a step back from the keyboard.

I love blogging about trading, but this is a chance for me to refuel my batteries and not think about to much for a few weeks.

You can still read all my posts and trading systems whilst I’m chilling out though.

If you’re looking for a system to trade then take a look at the DAX trading system that I wrote. It is still one of my favourite strategies.

I’ll be Back

I’ll of course be back at full steam once the holiday period has finished at the start of September.

From now until then I’ll give you some brief updates as to what I’m doing… (maybe) but on the trading front it is going to be very little.

I am away quite a bit this month too, so the break from serious trading blogging will be useful.

ESMA Rules

Remember, the new ESMA margin rules come into play on the first of August. This means you will need more money to fund each position you open. You can read more here. Personally I’m sick of hearing about it now. Let’s just move on.


Spread Betting New Regulations

What does it mean to spread bettors with the new regulations that come into force on August 1st 2018 from ESMA?


Well amongst all the noise, not that much if I’m honest.


New Regulations


The main impact of the new rules is going to see the margins on your trades higher.


This will mean that depending on your bank size, your ability to trade lots of different markets at once will probably decrease.


That isn’t such a bad thing though and personally I have never gone into the red with my margin anyhow. I have never or at least can’t remember having the dreaded margin call before.


You Will Now Need to be Selective


Overall you will now probably be set to trade fewer markets with a lower margin.


This again can work in your favour.


Trading like a lunatic on a full moon should be reduced to a minimum under the new regulations.


You will now need to choose your trades with a greater degree of consideration to preserve your margin.


You will also probably find that you will naturally be forced to become an expert in the fields that you trade.


Maybe you’ll start to consider trading just the major 6 currency pairs…. Maybe you’ll just trade the DAX or the DOW… How about ETF’s or only Shares?


This is in itself a trading strategy.


I have mentioned many times that becoming an expert in a tight set of markets or even a singular market can reap rewards.


These new regulations will give you the ideal opportunity to implement this idea.


Staying Positive


I seriously don’t think that there is any reason to feel like you have missed the trading boat.


Far from it if you think about it.


There are more and more new opportunities to profit from every day.


There are new ETF’s to trade that are added to the likes of IG and CMC all the time.


The markets will still ebb and flow as always.


If you personally feel that you have missed your chance, then I’m afraid that you probably have. It is down to you to make things happen in your life.


Another Option… Remember the Old Days?


As you probably know, I have been trading with Vince Stanzione for considerable time now.


Most of my positions that I hold with his advice are held in one of my Schwab accounts.


This means I actually own the stock.


Just like how the hero’s of stock market trading started out.


You don’t just have to spread bet to make money from the financial markets.


Although this option does require a larger bankroll it is still a very realistic and valuable option.


New Margins


Here is a quick glance at the impact that the new regulations will have on your trading margin.


It is far from the final curtain.


New Regulations