Last Wednesday I received the following e-mail from one of my readers:
I am a long term reader of your site and I have an exclusive proposition for you!
For the past 2 years I have been a successfully spread betting the major indices and a little forex (90% index, 10% FX).
Having recently changed accountants, my new one has informed me that if spread betting is my sole source of income I could be liable for tax. Now having not paid a penny for the last 2 years I became a little concerned as my income has been high.
This leads me onto my offer for you – I am looking to start a very small trading group where I will send a text message when I enter a trade with a defined stop and target.
I have averaged 150 points profit a week (600 per month) so even using small stakes members will make a very good return.
I am not looking to make a fortune, but just enough that should HRMC ever ask, I can show that the service is my main business.
However I am not very technically minded so do not have any website. The service will be restricted to just 35 members and this is exclusive to you. The monthly fee will be £249. If any members leave (however I can’t see anyone leaving) I will come back to you to replace from your site.
I know the high price point will limit our market but I am prepared for you to trial the service on your site free of charge for however long you see fit.
If you are interested please let me know and we can go about setting this up. I can start sending you the selections from Monday.
Of course, my first reaction was…£249 a month? But then I read it again and realised what he was offering. An average of 600 pips a month is £6000 a month tax free at £10 a pip. Or £3000 a month at £5 a pip! Or £1200 a month at just £2 a pip. It’s a bargain if he can produce those kinds of results.
Ok, I was interested, subject of course, to a full trial here on Cash Master.
I agreed to a trial, and Adam sent me a screenshot of his IG Index ‘My Watchlist’ whereby he has all the markets that he trades neatly grouped together. I copied this on my own IG Index account ready to go.
So from Monday, Adam has been sending the trades through via text message. A typical message is like this:
“Short Germany 30 @ 9750”
When it comes through, I login to my account via an app on my phone, immediately click on the Germany 30 market and click on ‘Sell’. This gets me in on the trade usually within a minute of the text coming through.
After a minute or so, I’ll get another text through from Adam like this:
“Stop @ 6866
[email protected] 6806″
So then I go to my trade again and now enter the Stop and Limit levels.
I can then log out and get on with my day.
It’s worth noting that I do this on an iPhone app. IG Index has an app that works on most phones and tablets and I opted to use this simply because I’m generally in and out the house throughout the day, either doing the school run, shopping, off to the gym, taxi service for the kids etc. so it’s not practical for me to try to be at the computer all day just waiting for trades.
Anyone thinking they might be interested in this should be aware that you will obviously need to be placing your trades within minutes of Adam, so that you get in at the same levels, so unless you are at your computer all day, then a phone app (or even a telephone account at IG) will be the way you do it.
Trades come through at anytime throughout the day so I suspect for most people, using a phone app will be the most convenient.
Often we get a message saying to close a trade manually:
“Close Germany trade here manually please”.
This is because Adam is constantly monitoring the markets and reacting to news. On Monday I had the following message:
“Bomb alert at Luton airport… time to reshort Ftse at 6824”
So it doubles as a news service too apparently!
I will be posting my results, and Adams results, here on the blog on a regular basis. I have to say; so far it seems to be the real deal. The results have been amazing.
I missed most of the morning trades on Monday simply because I hadn’t realised they start quite early and I had my phone on mute. Still, they are all time stamped so I could check them off against Adams to see his were genuine.
I’m trading at minimal stakes, £2 usually, so my results are obviously going to be less impressive than Adams, but it’ll give you an idea of what is possible for really small traders too.
Here are Monday’s trades for Adam:
And I got:
FTSE 100 £41 @ £2
FTSE 100 £32 @ £2