Morality aside, how do you turn a crisis into a profitable tax-free opportunity? Actually, let’s ditch the idea of morality for a second. That’s just noise you don’t need right now if you want to trade speculate profitably.
I had this conversation with my wife just the other day. For all the seemingly nefarious and sinister things going on right now, it is worth keeping in mind that every action has an equal and opposite reaction.
Although…action and reaction are the wrong words. Imagine instead, if you will, two opposing forces. Neither happening after the other, but both taking place now; in complete and absolute spontaneous equilibrium.
What if this p[l]andemic and all the pain it’s causing is not, in fact, emanating from the bottom-feeding barrels of your darkest nightmare but is, in fact, being sent from a place of light as a means to help you wake the fuck up and break out of the financial system of slavery that has been holding you back your entire life?
You can have a cuppa now; that’s my slap in the face done with for the day.
Think about it though; in the space of a few weeks your entire life has changed to a point where it is highly unlikely to ever return to where it was before all this began. Do you really want things to go back the way they were anyway?
Yes, house arrest sucks. But that will end as soon as you decide to leave your home. It’s as permanent as you want it to be.
As time goes by more and more people will realise this and something better will emerge – if you want it to.
In the meantime though, you could be taking advantage of what might turn out to be a once in a lifetime opportunity to make big tax free profits.
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Once In A Lifetime Opportunity To Make Tax Free Profit
If you subscribe to my mailing list, you might have already doubled your money over the last couple of weeks with some of the things I’ve been talking about there.
But if you haven’t taken that red pill yet, you could be making tax free money by spread betting (or investing via ISAs if you prefer a long game).
Spread betting is very attractive right now because unlike investing in shares, you can make money in market downturns.
If you’re new to spread betting, I urge you to read my guide to spread betting for absolute beginners but if you’ve got a little bit of knowledge, you will know that you can spread bet – that is, place bets on market movements – in either direction: up or down.
Since the beginning of March, the FTSE 250 index has fallen approx 20% from its highs. I use this as an example because it is the market I trade speculate in the most.
There are very few companies within the index that managed to withstand the crash to the 16th March but for those that did (and not only withstood the crash but maintained their price) like Spirent Communications [SPT], they represent excellent opportunities to make money.
Trade What You See, Not What You Think
If you’ve followed me for any length of time, you should know to always trade what you see and not what you think and to always buy on strength and sell on weakness.
This is one of my key financial spread betting tips. I have others, but you’ll have to subscribe to my private list to get the juicy ones!
Spirent [SPT] is a superb example of how you could be trading what you can clearly see is evidence of strength (visualised by upward price action). Even today, on the 10th May, [SPT] @ 256.5 still looks like a good long bet.
And, in true genius rhetoric; that which is not a long must, therefore, by definition, be short. In other words, everything else that doesn’t fit this visible strength ‘indicator’ should be weak.
I’ll find a couple of examples.
How To Identify Covid-19[84] P[l]andemic Money-making Opportunities to Spread Bet
As always, my first port of call is the free to access recent market movers section on the Hargreaves Lansdown website. You’ll need to look at this after a market session (eg. on a weekday evening after trading has closed for the day).
Whether you choose to go long (buy – bet on the price going up) or short (sell – bet on the price going down) will be up to you but I’d suggest that right now, there is overall less risk on the sell side. Let’s say for instance, in the event of a sudden market crash due to a secondary fabricated ‘wave’ of the Co[n]vid.
In this scenario, where placing short bets could have less risk, you might want to look at the ‘risers’ list and look for any shares that had a very recent (a single day) price increase in an overall weak-looking picture.
Derwent London PLC [DLN]
DLN would seem to fit this criteria in my do nothing spread betting system. They are currently trading at their second lowest price since the big Co[n]vid crash of March. This indicates to me there is still not enough strength here and because of the high price point @ 2900, a further small 5% fall in price could yield a very good tax free profit.
Another company that tweaked my radar this morning was Direct Line Insurance [DLG].
See here how the price has failed to show consistent evidence of strength post Co[n]vid crash. Lower and lower ‘price peaks’ to me do a good job of showing me that right now, people are just not feeling [DLG].
I’d also throw in that prior to the p[l]andemic, there was long term evidence of weakness in the price here with a 16% fall in price in the 12 months to the high point in March 2020 (before Co[n]vid).
Quick Recap: How To Identify Tax Free Money-making Opportunities to Spread Bet The P[l]andemic
- Check the recent market movers section of your favourite share screening/news resource (I use Hargreaves Lansdown for free) after the close of a market session.
- Identify shares that have had single day increases or decreases in the opposite direction to the price action evidence over the last 12 months.
- Assess whether or not this presents you with what the ‘experts’ call a ‘good entry point’.
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