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

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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: http://www.express.co.uk/finance/
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you into a trade are no longer valid?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 more
ZM: 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 have
beloved 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 making
trade do, and those who can’t “advise”. Do you
agree 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 in
gurus 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 with
vs: ZM: distributed, Netflix (NFLX) the last three years.
I agree 90% of those who offer seminars, tip
services, 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 for
bandwagon. It can be argued that I fall into that
camp 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 has
in 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 game
both from other businesses and investing. Most of
the people I respect are dead, but Ralph Acampora “Trading in an will make nothing for most retail traders) because they are exceptional
and 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 are
ZM: very similar to other months you winners in trading, they would be in business, the
Much is said about trading for a living, but is
it 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 involved
failure rate for most people of over 90% and so the
risk 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 insurmountable
odds, 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 it
vs: 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 wired
experience is that the more time you spend trading
the 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 about
can 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 and
gave 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.
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3. Editorial Contributor
Are such trades based on technical or fundamental
triggers? Is there a typical set up?
“I believe we are
in a glorious time,
the US economy
vs: Both, it is funny. The so called technicians
often quote fundamental issues and I think they will power ahead Focus swings back
and the Dow could
onto the PIIGS
should be used together. My typical set up is a stock
that is either hated or loved and then I start seeing
a trend change — Apple both up and now down is a easily hit 20,000 or
good example.
30,000+ in the next as the euro crisis
ZM: The impression given in the media is that
10 to 15 years.”
you are something of a millionaire recluse who was
successful 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 outlier
others 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 consider
vs: 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. got
hairdresser and wanted me to take over the us into the financial crisis in the first place via Sub
business (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 the
I 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-up
a program on BBC2, it’s here on the net — http:// the surface?
www.youtube.com/watch?v=q9brMMxI1RY. I then
got wiped out in the 1987 crash and started the car
phone businesses. vs: Well if you read certain media, the world is
always ending, so far the world has not (in fact
Then I decided to have another go at investing in wasn’t it supposed to on Dec 12th last year?!) and if
1990/1991 (when I had money) and bought penny it does then you have nothing to worry about! But
shares 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 by
1990 and I still have the account today (it’s a very horse and cart anymore. The times I have read that
short account number!). But I learnt from others oil is going to run out, yet truth is we have plenty
such as Jess Livermore, Jim Rogers and Nick and cars are far more economical.
Darvas, so why not pass my skills on? But you’re
right, traders must make their own mistakes, it’s part
of 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 bearish
ZM: Do you have a macro view on the UK / West- regarding sterling and also the bubble in Central
ern Economy, and is it as grim as the 20 year Japa- London real estate? This, along with the regulatory
nese Zombie economic scenario that many people issues in the City of London, give the impression
fear? 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 from
easily 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 classic
years. The new shale energy and biotech/healthcare
discoveries are underestimated. I liked gold and cars, but then buyers and sellers regroup and prices Apply today at CapitalSpreads.com,
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 CFDs.
now as I think you can make more elsewhere. Also
I don’t buy that gold is an inflation hedge, so are country. The UK is very respected in many fields
stocks — you would have made more in McDonalds such as biotech, fashion & design, television, music
& film, tourism to name a few, and these areas can
the last 20 years than gold. I do still own some
bring a lot of money into the UK.
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