MoneyMaker Jun/July 2012

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ISSUE ONE | JUNE/JULY 2012

PLUS

MAKE IT • SPEND IT • LIVE IT

England’s Chances at Euro 2012 and how to profit from them The hottest way to get around without four wheels

FX Trading 101: Learn to cut out the mistakes Liquid Gold: Breaking into the wine investment industry

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editor’s letter Hello Reader, And Welcome to the very first issue of MoneyMaker, the web’s premier international wealth acquisition and luxury lifestyle media brand.

MoneyMaker’s monthly digital magazine is the primary source of information and insight for ambitious people who want to make it in the world on their own terms. If you want to know how to make money, and where to spend it, then MoneyMaker is the magazine for you.

Covering entrepreneurialism, financial markets, intraday forex trading and spread betting, physical asset investment, property and sports betting, MoneyMaker gives its readers a wealth of ideas of how to take control of their own finances and be prosperous for themselves, regardless of the state of international markets.

From stretching your pay check or building a retirement nest egg through to self-employment or even building an empire, everything you need to know to make your ideas become reality can be sourced through MoneyMaker.

Personally all I can say is that it’s been a fantastic journey getting the magazine to publication, and I can’t wait to introduce some of the fantastic innovations and authors we have lined up over the next few months.

Thank you to everybody who has made the magazine the achievement it is, we’re really excited by what we have managed to achieve and are looking forward to many more years of success.

This month’s issue is full of some of the most exciting news and articles from the world of finance and lifestyle, including the latest in community investing, an introduction to the world of wine investment, and England’s chances of coming home with anything other than pride from Euro 2012.

I hope you enjoy the issue, and look forward to bringing you much more in the future.

Best wishes Alex Alex Hammond Editor in Chief, MoneyMaker Magazine

Editor in Chief Alex Hammond Features Editor Mark Southern Web Editor Annaliece Lloyd Features Writers Eve Hartridge Phil Green Jo Franks Andy Claire James Fenn Natasha Heard Emily Scott Contributors Louise Hinchen Alessio Rastani Simon Smith Michael Derks David Munro Alex Case Declan Fallon Chris Smith Quintessentially Wine Omar Bacha Art Director Ian Feeney Videography Adrian Butterworth Photography Simon Jessop Head of Sales Kyle Haddon Marketing & PR Polygon PR Research Analysis Simon Wiltshire

MONEY MAKER MAGAZINE | 03

contents june/JULY 2012 News 06 08 10

News in Brief Book Review Interview: Jeff Saul

40

Entrepreneur 15 16

Entrepreneur News Financing your start up

Trading 18 24 26 28

The Traders Club Alessio Rastani Euro Crisis FX Class: Cutting out the Mistakes 32 Australia Rates Cuts 34 Food for Thought 38 Charting Tools 40 Social Trading

Assets 42 44 46

Wine Markets Why trade in wine?

Art Focus: Chinese contemporary art

16

Lifestyle 50 52 56 58 60 64 66

Le Manoir Lisbon Tennis Hotels Acupuncture Transport Fashion Accessories

46

18

Sport 70 74 76 78

Euro 2012 Betting Tips Bet Butler Poker

70 04 | MONEYMAKER MAGAZINE

Send in your stories: Got a story MoneyMaker should be reporting on?

Contact us at www.moneymaker magazine.co.uk

News in Brief what we’re talking about right now

Apple Focusing Development on Cracking Interactive TV “Apple could have a new television product ready to be unveiled before the end of the year in time to go on sale in 2013” 06 | MONEYMAKER MAGAZINE

Apple Inc (AAPL) CEO Tim Cook has labelled the medium of television an area of “intense focus” for the technology company as it looks to branch out from its incredibly successful Mac, iPhone and iPad products.

Cook described television as “an area of intense focus for us,” at the D10 conference in Rancho Palos Verdes, California last month.

Before his death last year Apple co-founder Steve Jobs revealed that he had “finally cracked” how to develop a simple television that could synchronise with other Apple products. There is an expectation in the technology industry that Apple could have a new television product ready to be unveiled before the

end of the year in time to go on sale in 2013.

Apple does already sell a set-top box called Apple TV that gives users the capability to stream video from Apple products to a television, but the product has not met the same market success as other Steve Jobs products. Apple executives have labelled the Apple TV project as more of a “hobby” than a product.

If Apple does give its full attention to revolutionising the television technology industry with any degree of success then that can only be positive news for the company’s share price, which has been soaring for the past twelve months.

FSA doles out record fine to hedge fund chief

Facebook Shares Continue to Plummet, Concerns Grow Shares in social media super-giant Facebook have continued to slide post its record breaking IPO last month.

After floating at an initial price of $38, the share price immediately tumbled, and had fallen below $29 before the end of May. To date the drop in share worth of almost 24% since start of trading has wiped an estimated $25bn (equal to the market capitalisation of Morgan Stanley) from the value of Facebook.

The unrelenting free-fall comes after Wall Street expressed concerns that Facebook Inc would not be able to convert its massive social media presence and bank of data storage into revenue equivalent to the company’s projected value. Despite the revelations that Facebook will focus development on targeting the smartphone industry, investors seem unconvinced in

Facebook’s ability to challenge industry powerhouse Google Inc and Apple Inc. Norwegian company Opera is on the auction block and could be an acquisition option if Zuckerburg & Co. wanted to attach a mobile arm to its media organisation quickly, although no formal approaches have been explored as of yet.

Facebook currently relies on advertising for the vast majority of its revenue but, with analysts unsure as to whether Facebook can entice and keep hold of large advertisers, opportunities for growth in that particular commercial sphere seem stunted.

Indeed some analysts estimate the true market value for Facebook based on realistic potential revenue at somewhere in the $16$24 a share range things might get worse for Mr Zuckerburg before they get better.

Current Set Up Unsustainable, Admits ECB President The eurozone crisis continues to be the biggest factor weighing down on economic markets, with brighter prospects still not visible on the horizon after European Central Bank president Mario Draghi admitted that the current EU setup is “unsustainable”.

Draghi has called on Euro countries to decide how they would like a revised bloc to look, informing leaders that the ECB cannot continue to “fill the vacuum” whilst governments stall on structural reform and reigniting economic growth.

In a statement to the European Parliament Draghi stated “can the ECB fill the vacuum of lack of action by national governments on fiscal growth?

The answer is no.”

“The next step is to clarify what is the vision a certain number of years from now.”

Backing up Mr Draghi’s words, EU economics commissioner Olli Rehn has called on eurozone leaders to impose austerity, rather than issuing European States joint bonds, to have any chance of avoiding a bloc breakup.

The Financial Services Authority has handed out its biggest ever punishment for an individual in a non-market abuse infraction, fining hedge fund manager Alberto Micalizzi a hefty £3m after the Italian was found to have deceived investors.

Micalizzi, the chief executive of Dynamic Decisions Capital Management, lied to investors and used illegitimate bond contracts to conceal huge losses incurred after the collapse of the Lehman Brothers in 2008. The breakdown of the American banking giant slashed 85% from the value from Dynamic Decisions Capital Management’s main fund, Micalizzi made positive attempts to conceal that fact from investors and in doing so breached the FSA’s statements of principle for approved persons.

The hedge fund manager, who is also an academic, has also been barred from working in the UK regulated finance industry following the fine.

OANDA appoints new CEO FX trading platform OANDA announced last month that co-founder and longtime CEO Dr Michael Stumm has been replaced by K Duker with immediate effect.

Duker was previously the Managing Director of OANDA’s Asia Pacific division, making the transition from one CEO to another a smooth one for OANDA. “K Duker has demonstrated his commitment to customer service excellence as evidenced in his remarkable stewardship of OANDA’s Singapore office,” said OANDA Board member Kittu Kolluri. “During his tenure with OANDA, K has been a close advisor to the firm’s leadership, drawing upon his many years of incomparable industry experience.”

“The Board is confident that K brings the leadership skills and deep financial knowledge to take on the responsibility of guiding OANDA in the next phase of the firm’s growth.”

In a statement to the press, Kolluri paid tribute to Stumm’s work developing the company from its origins, saying “As one of OANDA’s co-founders, Michael Stumm’s unique vision and technical expertise led to the creation of a company that literally changed the way retail customers approach forex trading.”

Stumm will continue to serve on the OANDA board of directors.

MONEY MAKER MAGAZINE | 07

The Traders

Book Club

All three books from featured in this month’s Traders Book Club can be found at www.harrimanhouse.com

MoneyMaker’s answer to Oprah

Foreign Exchange: The Complete Deal

The Financial Spread Betting Handbook 2nd Edition

By Malcolm Pryor

A comprehensive guide to the theory and practice of the Forex market By James Sharpe

n The FX market is the most exciting financial market for traders, and also one of the most important markets for those who run our economies. On the one hand foreign exchange provides an opportunity for traders to make profits, but additionally the management of exchange rates is a central part of countries’ economic performance.

In his book James Sharpe takes you through everything in the world of forex, from the theoretical to the practical; the theory is explained in early chapters, followed by practical chapters giving a clear understanding of the issues and processes involved in foreign exchange transactions.

The book begins with an exploration of the historical and theoretical background to the markets as they exist today.

The focus then moves to foreign exchange in practice, the core of the book. Topics covered include: how price quotations are created and presented; cross rates; the range

different transactions available and how they are calculated; how foreign exchange exposures are hedged; and how professional traders analyse the market, including a look at technical analysis patterns.

This thorough, technical guide is recommended for those who want to understand more about the commercial realities of currency trading and hedging.

Mastering Hurst Cycle Analysis A modern treatment of Hurst’s original system of market analysis By Christopher Grafton

n In this brand new book Christopher Grafton, an experienced trader and member of the Market Technicians Association, tackles the cycles analysis work of J.M. Hurst and provides a meticulous guide for starting out with this technical analysis approach through to using it to analyse cycles yourself and place your own trades.

J.M. Hurst was an American aerospace engineer in the 1960s, who applied his

08 | MONEYMAKER MAGAZINE

understanding of mathematics, computing and engineering to market cycles. Grafton has taken Hurst’s approaches and updated them for the computer age; by following the step-by-step process in this book traders will learn how to quickly perform a cyclic analysis of any financial instrument on their own systems.

Overall this is a carefully constructed, thorough and extremely readable guide to a complicated area of technical analysis. It is well presented and illustrated throughout with 120 legible diagrams and financial charts, showing real examples from the markets that make Hurst’s work accesible.

n This new edition of Malcolm Pryor’s original spread betting bestseller not only takes account of recent market changes, but also adds four further years of trading experience – making it one of the premier guides for beginner and intermediate spread bettors.

Pryor has organised his book around the metaphor of mountaineers setting out to climb a mountain.

This sees the book divided into three parts.

‘Base Camp’ is all about making sure you don’t try to get to the top of Everest armed with nothing more than a pair of Nikes and invincible self-belief.

Pryor reveals the secrets behind choosing the right firm, the best software and hardware, and avoiding the most devastating mistakes.

In ‘Climbing the Mountain’, Pryor explains the ins and outs of putting together effective strategies, with numerous examples for readers take away and adapt.

Finally, ‘The Route to the Summit’ is all about trading techniques: matching strategy to your personality; staying in control; keeping records; and giving yourself regular reviews.

Most especially, it’s about risk management – and protecting against the pitfalls of the spread betting world.

This leading guide to trading well justifies its second edition.

MONEY MAKER MAGAZINE | XX

“Jeff Saul joined Saxo Bank in 2009, and has been the CEO of EUROINVESTOR SINCE 2011” 10 | MONEYMAKER MAGAZINE

up f r o n t

jeff saul

In the Community Spirit We sit down with Head of Equities Research at Saxo Bank and EuroInvestor CEO Jeff Saul to talk about a career in the equities industry, the benefits of being a part of the online investor community, and Cockpit, the latest innovation in trading technology

Tell us a bit about your background.

How did you come to be Head of Equities Research at one of the biggest trading banks in the world?

I’ve always been interested in stock markets and investing from an early age, and got into the industry in 1986 straight after leaving business school. I’ve been doing equities research for the past 25 years, either starting companies from scratch or developing research arms of existing institutions, including a seven year stint at French broker Cheuvreux, the stockbroking arm of Crédit Agricole, one of the top 10 brokers in the world.

I went back to Denmark in 2003, working as the Head of Research in a couple of places, and then in early 2009 I joined Saxo Bank to help build their equities offering, in terms of both the trading platform they were offering and the equities research arm of the bank.

How has your role at Saxo Bank changed since then?

At around the same time as I joined, Saxo Bank bought a third of online community EuroInvestor. I joined EuroInvestor and worked as a member of the board until June 2011, when I took over the CEO. Did you have any previous experience of working with online communities?

In 2003, as an addition to my other job, I joined the board of the biggest online community in the

computer gaming world, so I did have some experience.

I was invited there to bring some finance and M & A expertise to the company, and it was there that I really got acquainted with the communities world. Joining EuroInvestor mean that I could merge my two biggest areas of interest.

How would you say the industry has changed since you first began in equities research?

Back in the 80s equities research was a new thing. It existed on a pretty advanced level in the US and the UK but everywhere else it really was the very early days. I had to bring my personal files on all the listed companies when I started the equities research department at the first bank I joined, and it’s been like that in many places since.

It also wasn’t until the mid 90s that you started to see brokers offering online research to institutional clients.

And that was the same time as the internet kicked off, and that’s shifted most phone trading and physical presence trading into online trading. For the professional crowd, that’s meant much more professional execution, much lower prices, and unbundling, and for the retail audience it’s meant that the mysterious “big black box” of trading tools available only to the pros became accessible to them. That was the whole point of the project at Saxo.

Have retail traders adjusted well to

MONEYMAKER MAGAZINE | 11

up f r o n t

jeff saul

having far more information and indicators at their fingertips?

Well you can ask yourself the question as to whether do they understand everything provided. I believe that there is a sophisticated crowd among the retail traders who do, but of course there are also a lot of people who have quite a bit to learn. I think the next generation of people coming out of business school who are internet savvy from day one will be the big winners and beneficiaries of how things are progressing now.

What is EuroInvestor, what’s the concept behind it and what role does it play in the industry?

EuroInvestor was founded back in 1997 by two brothers, so it’s one of the oldest investor communities in the world.

Saxo Bank originally bought 30% of the company, and now we own 70%.

The idea was that EuroInvestor should be the online meeting place for investors and traders to discuss trading ideas amidst a number of unique additional features.

Today EuroInvestor has 1.6 million unique visitors per month, its one of the biggest online communities in Europe.

How has Saxo Bank affected the EuroInvestor product since it took control of the community?

The first thing we have done is to improve the quality of the product and to make sure all of the data available to users is correct, so we deliver what we promise to the community. Secondly we wanted to ramp up production of new tools at an increased rate, and that’s been the key focus for the past eight months. That’s where we are now, with the new EuroInvestor portal and Cockpit, a comprehensive trading tool, launching. And we still have a continuous product development pipeline in place for the next nine months.

Does the EuroInvestor community have its own trader platform?

We have our own trading platform,

Eurotrader, which is a white label of Saxo Bank. You can trade the same as you can on Saxo, but we have tried to make it as simple as possible so that someone who comes in and wants to trade stocks isn’t confused by CFDs, FX, options or futures.

Before the end of the year we aim to bring trading into the community, because that’s where people want to be. They don’t want to be on the online broker or banking platform, they want to be where their peers are and where they can feel at home. So our vision is to bring the trade functionality to the community, rather than bring the community into a trading platform.

We’ll also be doing a lot of trading competitions, so people can trade on our platform with demo account money

and win great prizes. That’s always great entertainment but it is also educational as well.

What is Cockpit?

It is a trading tool box, but with a key difference. A financial website will present you information in a way that the people behind the platform have decided is the best way for you to see it. Cockpit is the antithesis of this thinking. What we have done with Cockpit that is the major difference from anything else is that everything is completely customisable.

There’s a lot of small widgets that can be combined together to create your own trading tool box.

How many options are

“We think euroinvestor should be the online meet ideas amidst a number of unique features. today e 12 | MONEYMAKER MAGAZINE

available to users?

You can have up to 12 different screens but into those you can put in whatever you like from a wide range of technical trading tools, prices and gaphs. So you can have an FX screen, a global stock markets screen, etc, and there are options to install news widgets where you can add your own RSS feeds from whichever sources your trust.

You can also add a widget from the discussion board of EuroInvestor, so you can see what people are discussing right now.

Is this a product designed to be used by people signed up to EuroInvestor or Eurotrader only or do you see it as product that can be used completely across the industry?

I think it is suitable for use across the industry. It can be completely independent of EuroInvestor because if the majority of the growth across the industry comes from people sharing screens, which they can do via email or social media. Users might never come into contact with EuroInvestor, other than the fact that Cockpit is a EuroInvestor product.

How the service been received?

Have you had any feedback?

The feedback has only been from demos at the moment, but everyone has agreed that the product looks and feels fantastic.

When you’ve got the choice between a platform forcing a portal onto you with only one way to view data or having the option to customize your screens then why wouldn’t you choose the latter every time? For the couple of hours it would take for you to set it up having you own specification portal is certainly worth the effort.

In the current financial climate is this the time for people to be investing in equities?

My personal view on the world economy is that we’re in really bad shape. Having said that the US does seem to be stabilising, but I don’t really think their economy could be

described as anything near healthy yet. They have terrible budget problems and so does Europe. So I’m actually pretty pessimistic on the world economy.

Emerging markets have done much better in the crisis, but I think we’re seeing some bubbles being created in economies including China. I think we’ve seen the market crash and am not expecting another one, I just think it will be volatile times and at the end of the year we won’t have seen much improvement.

So I think it’s going to be a stock pickers environment, and also an interesting environment for traders and short term investment people because I don’t think the buy and hold investors will make a lot of money unless they are good stock pickers.

Are there still opportunities out there though?

Oh yes. I think crisis times are times when strong companies and creative companies have fantastic opportunity to take advantage of their competition suffering.

If you had to pick an industrial sector or a geographical economy to look out for better returns for the remainder of 2012 what would it be?

Everything always comes down to a

matter of price but I think technology will be an interesting sector to be in. I don’t think banking will be a nice place to be.

Technology and pharmaceuticals will be much better. And anything pointed towards emerging markets has the potential to explode.

Finally, if you could give one piece of advice to new investors getting into the markets today what would it be?

If I could only give one piece of advice it would be to get into a community, and really learn for the crowd. There’s so much focus from most financial communities and portals to create great content and tools for the trader base. And that means there’ll be a lot of educational material and discussion boards to garner information from. That’s should be your starting point. From there you will see how far you’ve got to go and how steep your learning curve is. Whatever you do don’t go down to the bank and ask for advice. Why should an investment advisor at a bank know anything relative to hundreds of thousands of people in a community in a particular country.

Another big thing were already seeing in the FX world is copy trading , where basically you can see who the best traders in the community are and trade exactly what they’re trading, which can be a huge help.

ting place for investors and traders to discuss euroinvestor has 1.6 million visitors per month” MONEYMAKER MAGAZINE | 13

entrepeneur news What’s new in the fast-moving world of entrepreneurialism this month.

Are We In a Social Media Bubble?

After the decade’s most eagerly-awaited floatation, Facebook’s value is being questioned by investors who have seen their stock plunge by a fifth in a week.

Indeed, entrepreneurial A-lister, Mark Zuckerberg now faces at least eight lawsuits alleging fraud, but as The Social Network movie explained, he’s no stranger to litigation.

One of the lawsuits claims “The market debut of Facebook was predicted to be the most important market event in recent history, generating tremendous enthusiasm.

What transpired, however, has proven to be an additional blemish on Wall Street’s already damaged reputation.”

Despite his massive personal wealth, and the ubiquity of his company across the globe, it does appear that Facebook’s founder has some difficult times ahead, with advertising revenues falling beneath expected levels, and the world’s media spotlight upon it.

Social media entrepreneurs will be hoping this is not a sign of things to come, with big values already being attached to newcomers to the scene, like the creative Pinterest, which recently was valued at $1.5bn.

Support for Young Entrepreneurs Prime Minister David Cameron has launched a new StartUp scheme for young people looking to make it in business.

The scheme, which provides loans of on average £2,500 to 18-24 year olds is designed to make it easier for young individuals to launch their own companies, and start successful serial entrepreneurial lives.

The government is ring-fencing £82m for the scheme, with Dragon’s Den star James Caan chairing the body that will agree the loans, subject to a sturdy business plan

from the entrepreneur.

The move comes after Lord Young’s report which highlighted that, whilst there were 450,000 new start-ups in 2011, thanks largely to the internet making this possible, there would be double this figure if the UK had the same entrepreneurial streak as its US cousins.

The Prime Minister said, “I want this to be the year where people think: yes, I can do it, that we can get as many viable businesses as possible off the ground.” www.startupbritain.org

Daily Deals Drive Happy Days For Retailers Coupon brands, including Groupon and LivingSocial are revolutionising the UK retail market, with 3.8 million coupons sold from January to March this year.

There are over one hundred daily deal companies operating in Britain, saving consumers over £100million from RRPs since the start of the year, and netting coupon companies £184m.

A Global Daily Deal Association spokesperson said “The daily deal industry may be new, but it has proved to be hugely lucrative for those businesses that get it right. Our challenge is to make it sustainable by ensuring the model works for consumers and merchants.”

Look out for a special feature of how entrepreneurs can make the most of coupon sites in the next issue of MoneyMaker Magazine.

MONEYMAKER MAGAZINE | 15

entrepeneur

strategy

investing in your future the moneymaker magazine guide to financing your startup o, you have a great idea, a clear idea of how to make it a reality, and the creativity and drive you’ll need to make it happen. However, statistics show that over 72% of startup ideas never get off the ground due to problems financing the project. Simply put, in most cases, someone, somewhere, is going to have to stump up some cash to get a concept past the discussion stage. But where should you look?

1: The Bank The traditional method of speaking to the bank manager is becoming ever less likely in these days of austerity and non-lending, but success stories are still possible, with many entrepreneurs still maintaining the old way is the best way.

Sarah Tremellen is one such entrepreneur, whose company Bravissimo, catering for lingerie for bigger bust sizes, has benefitted greatly from her close relationship with a friendly bank.

Despite a good plan with a thrifty business model, she needed investment to get the idea launched, and so spoke with her local bank manager, who was able to offer her a £10k loan to get the business underway.

First year sales of £138k were doubled

16 | MONEYMAKER MAGAZINE

in the second year, and today sales stand at over £30million annually. l www.bravissimo.com

2: The Family Loan Nobody wants to borrow money from a friend or family, but in some cases it can be the most valuable thing they’ll ever do for you, and they can benefit greatly too in the long term.

Sarah Stanley is the MD of Unique Home Stays, starting the company herself ten years ago with a £500 loan from her mother.

With this small cheque, and bags of selfbelief and determination, Sarah set about establishing her fledgling company as the UK’s number one holiday lettings provider of unusual homes.

The loan wouldn’t allow for much, but gave her enough breathing space to get a host of odd and quirky homes onboard, with over 140 properties in fourteen countries across the world.

Sarah achieved success, but still strives for more today. As she explains “Having turned my initial £500 into a multi-million pound enterprise, with a turnover of over £5million last year, and with bookings up by 48% and revenue growth of 40% despite the economic downturn, the challenge to stay ahead of the competition remains a great motivator for me.” l www.uniquehomestays.com

1 3: Self Financing Many entrepreneurs manage to finance their endeavours themselves, with either savings, re-mortgaging or profits from other businesses they may have.

Kevin Byrne, MD of CheckATrade.com managed this when launching his company, which aims to monitor trades companies to help people avoid cowboys.

He had a vision of a central place where these people would be blacklisted, and good tradespeople could be highlighted, but his savings wouldn’t stretch to doing it full-time.

However, he had a carpet-cleaning machine, and some graphic design skills, so would work weekends with these in order to afford his family’s basic living expenses.

Kevin said, “To me an entrepreneur is very much a self-motivator and having or not having money will have little to do with

5

2

However, in the same way fans were quick to join the crowd-sourcing project, they have been swift in losing interest, with annual registrations languishing at a low level, and only a small fraction of loyal supporters bothering to vote.

The internet can be beneficial to a start-up, but if we learn anything from the Ebbsfleet experiment, it is that the entrepreneur must keep it relevant to their interests. l www.myfootballclub.co.uk

5: The Investment Angel

4 family. Don’t sell your heart and soul to investors.” l www.checkatrade.com

4: Crowd-Sourcing

3 the actual act of starting.

The key is cash flow, not so much to push the company forward as most of this can be done by the efforts of the individual, but to feed and house the entrepreneur and their family.

“Some suggest re-mortgaging your family home. I simply didn’t see the need to do this, keep your day job in the early months, or work self-employed to finance your

Sometimes it simply isn’t possible to get an investment from a traditional method.

Prior to the internet, this could have been problematic, but today’s online world has allowed for a new option.

Football fan Will Brooks turned to crowd-sourcing in 2007, when he became disillusioned with the lack of regard for the humble supporter from the Premier League clubs. His idea was to offer tens of thousands of fans the chance to run their own club, vote on everything from team selection to kit design, and put the power back in the hands of the everyday supporter.

His company, MyFootballClub.co.uk was a media sensation, with his unique idea catching on with over 50,000 people, who each paid £35 to have a share in the vision.

Later that year the company purchased lower-league football club Ebbsfleet United in a £635,000 takeover.

Dragon’s Den has given widespread publicity to the investment angel process, albeit if the stylised television version isn’t exactly the way most work.

Angels come in all shapes and sizes and can provide not only capital but also, and often more valuably, expertise to make an idea shine.

Innocent Drinks found both fame and fortune in 1999, thanks to a business angel who was convinced to back their wholesome smoothie company.

Famously, the company’s origins were founded when its three creators, Richard Reed, Adam Balon and Jon Wright, quit their City jobs after running a smoothy stall at a jazz festival, inviting their customers to vote if they should remain in their office jobs, or change careers.

However, manufacturing is notoriously expensive for start-ups, and they needed some big investment, so set about finding a business angel, eventually managing to arrange a pitch meeting with American investor Maurice Pinto.

After impressing Pinto with their numbers, vision and ethics, the angel invested £250,000 in the trio, in return for a 20% stake in the company. Less than a decade on they have reached £100million in turnover annually. l www.innocentdrinks.co.uk

MONEYMAKER MAGAZINE | 17

T H E TRA D E

CMC TRADERS CLUB

IN THE

CLUB

CMC Markets are bringing the online trading community into the real world. MoneyMaker went along to find out how

here’s been a social trading revolution over the past twelve months. Twitter, Facebook and trading forums are giving retail traders the ability to share information faster than ever before, allowing individuals to work together to tackle the markets. After all, there’s strength in numbers.

At CMC markets, however, they’ve taken this idea even further, with the launch of a new scheme called the Traders Club.

The Club gives retail traders the opportunity to come together at the CMC Head office to converse on all things financial markets, and in the process learn new strategies and skills from each other.

But has it been a success? We caught up with CMC markets Head of Product Development Craig Inglis to find out.

What was the original idea behind the CMC Traders Club, and how has it grown since the project began?

We’ve always tried to develop CMC as a social company,

and have given our customers access to CMC market information though platforms such as Facebook, Youtube and Twitter, as well as online educational guides, for quite some time. However, when we have spoken to clients they have always said to us that what they’d be most interested in is live trading, and the ability to speak and mingle with like-minded individuals.

We took this on board, and developed the idea to create a physical room that would showcase the trading platform whilst simultaneously allowing people to exchange information, in essence the ultimate traders’ suite.

So what equipment does the Traders Club suite hold? And how many traders can access the services at any one time?

We have some top of the range 27 inch iMacs, and a number of plasma screens with CNN, Bloomberg, CNBC and BBC news running. We also have a collection of subscription services.

We invite a maximum number of 30 of our clients to bring their own laptops to the Traders Suite and actually trade live in this active space inside CMC Markets. In this way our clients have the ability to share strategies, learn

MONEY MAKER MAGAZINE | XX

T H E TRA D E

CMC TRADERS CLUB

from each other, and work as a partnership to see what they achieve in the markets together.

The Traders Club format has continued to follow that model since. CMC conduct a market update at the beginning of each session, but what were already beginning to see is individual clients are now presenting concepts, ideas and strategies to their fellow traders about what’s going on in the market right now. We’ve also seen a large amount of swapping of contact details, and already we’ve got clients speaking to each other independently of CMC to discuss market opportunities and how they can improve their strategy.

Is there a restriction on who can turn up for a Traders Club event?

You have to be a CMC client and the session involves live trading, although this isn’t compulsory, so it’s prudent to be a client with some funds in your account. You don’t have to place a trade to turn up, but the majority of clients do attend are actively trading.

Other than that there are no restrictions, the Traders Club is open to everyone.

If you’re over subscribed for an event is preferential treatment given to more experienced traders? Is getting a spot at a session difficult?

We have a waiting list, so if a session is filled and all the attendees have confirmed but someone pulls out we’ll be able to open that position to other traders who have shown an interest in the Club.

At the moment we’re hosting one session per month, but we would expect that as the popularity of the sessions increase we would run the sessions bi-monthly and then even more frequently in accordance with the wishes of our clients.

What makes the club unique in comparison to otherbtrading clubs or schemes?

There are a couple of things to distinguish the CMC Traders Club from any similar scheme. The first is our location and building. As well as being situated in the heart of the City we’ve got the most amazing room within our building for the Club that’s unparalleled anywhere. It’s a hugely impressive atrium covering several floors and filled with natural sunlight.

There is also nowhere else where you get access to CMC itself and the specific layout of technology we have on offer at the Traders Club. Our analysts are always coming in and out of the Club to discuss ideas and the markets with people, which you couldn’t do elsewhere. This gives the clients not only the ability to speak to each other but also to pick the brains of CMC’s analysts.

Are there any plans to expand the traders club intoban online format?

We are looking at how to take steps towards bringing the Club to the next level. Some of the biggest emphases at CMC are education, social interaction and online information, and that is where the Traders Club will focus.

Expanding into an online focus will open the door for more clients to access the Traders Club at any one time, however it’s important to remember that the more people you add into the mix like that then the more difficult it is for individual trader to have a voice and explain their strategy to other members of the club, so it is important to strike a balance. We want the club to provide the best possible service to our members.

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Could the Club itself specialise in its focus?

In the short term we’re keeping all of our Traders Club members together, but we may eventually categorise members to ensure that everybody gets the most from the Club. So for example we might have a high net worth Traders Club, a technical traders Traders Club a fundamental Club, and a beginners Traders Club. In that way we could expand the Club but still keep people with like minds and goals together .

What’s the feedback you’ve received from members so far?

We get a lot of feedback and emails following each session, all of which is incredibly positive. Traders tell us after each event how much they’ve enjoyed and learnt from the whole Traders Club experience, especially due to the fact that clients can present to each other, which in turn strengthens the relationship between those traders as well as between individuals and CMC. Is that part of the Traders Club something that you’re looking at increasing?

As the concept continues to grow more and more traders are asking to present to their peers at the event which is something we will continue to encourage. Nobody else offers that opportunity to

clients, to both pitch and also hear strategies from other retail traders in a similar position to themselves, and what’s most important is that service is completely free. Anywhere else that offers something remotely similar to the CMC Traders Club will charge a large fee to traders to attend, and then the session will be completely run by the professional traders. The CMC Traders Club is very different from that, because of the fact that retail traders are so heavily involved in the process, meaning that there is more that those traders can learn from each other.

“Nobody else offers clients the opportunity to both pitch and also hear strategies from other retail traders in a similar position to themselves”

Can you envisage having the Traders Club eventually being open daily?

Our first goal is to progress from monthly to bi-monthly meetings, then if the take up continues at its current rate there would be a strong consideration to open the Club more frequently, and eventually daily. Clients would have to register beforehand, we couldn’t have a walk in clinic for security reasons, but if we could fill the room every day and if it’s something we think something people

would be interested in we’d try to fulfil our clients’ wishes.

We’re also looking at increasing the number of subscription services as well to make the space more like a proprietary trading desk. If you went to a professional firm you might have to pay desk fees in excess of £5,000 to be able to go there every day, but what we’re creating is an environment similar to a home away from home to allow traders to get together to discuss strategies and therefore become more successful.

Finally, what’s the easiest way to get invovled in the traders club?

Firstly sign up and become a CMC customer, that’s all that you need to do to be eligible to join the Traders Club. Then all you would have to do is visit our cmcmarkets.co.uk website, click on the education section and you can sign up there. You will need to sign up well in advance though, because the places get filled up very quickly.

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T H E TRA D E

c Trader

Algorithmic Trading in the ECN FX Markets The rise and rise of the Electronic Communication Network, and the impact its having on the #fx industry n Omar Bacha, cTrader

T

he FX market has been experiencing the rapid emergence of a relatively new development in the world of retail trading – algorithmic and automated trading.

Algorithmic trading involves creating code-written robots designed to carry out trading functions, usually the modifying and opening of trading positions, based on algorithms that capture opportunities for trade execution.

In an increasingly automated market where 50% of all traded volume is executed by algorithms, robots are typically created to generate trading signals using historical and real-time data analysis to determine which currencies to buy or sell, when, and using how much volume.

Algorithmic trading is perfectly suited to foreign currency exchange – with FX being the world’s most liquid market, and where large orders can be moved without causing undue market impact – especially when dealing in the most popular majors and crosses.

For participants and traders already involved in algorithmic trading, the rise of ECNs in the retail space has been a major development.

Data is the major mover and shaker of these markets and algorithmic trading demands access to data from a large depth and range of sources. The availability of technology in this area has been made possible by ECN. A surge in interest in algorithmic trading at the retail level has also attracted its adoption by many vendors looking to expand their presence beyond spot trading.

Broker-dealers and other financial firms have turned to ECN to offer better support for their algorithmic trading

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services, using ECN’s deeper liquidity, affordable execution prices, FIX Protocol and ultra-low latency networks to make real algorithmic trading a genuine possibility to thousands more traders.

Traditionally restricted to major banks and financial institutions, the emergence of retail ECN has meant that algorithmic trading at ultra-low latency speeds has become available to any individual or organization in possession of coding aptitude and an understanding of the currency markets. Additionally, algorithmic trading platforms which use common, non-application specific programming languages such as C#, allow individuals who are not technically

adept to hire from a pool of thousands of existing coders to help develop their own algorithms.

While algorithmic trading continues to evolve and the viability of its adoption continues to expand – success for any trader will depend less on finding the perfect algorithm – such a thing surely does not exist – and will depend more on building successful strategies built around efficient trading interfaces, with reliable and lightning-fast under-thehood technological solutions.

As the rate of adoption of ECN trading grows, there is undoubtedly room for expansion in the field of algorithmic trading.

MONEY MAKER MAGAZINE | XX

T H E TRA D E

Alessi rastani

trading secrets?

WHAT secrets In the first article in his series lifting the lid on the trading industry, Alessio Rastani explains that the big secret everyone’s hiding is that there are no secrets at all n By Alessio Rastani

ack in October last year, when my famous BBC video went viral on the web, I was asked in several TV interviews this question: “Tell us some of the secrets that traders use to trade the markets...”

I thought about that question for a moment, before replying: “There are NO secrets!”

Looking back on that now, I have a small confession to make...

But before I reveal to you what that admittance is, let me explain why I said “there are no secrets”, and you need to really pay attention here because this is very important.

There is a major problem with the trading industry...

This industry is full of companies and so-called “gurus” who all profess to hold the “secrets” to making money in trading. These guys are everywhere, and they’ll all be promising you amazing

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one-time only moneymaking solutions, such as “holy grail indicators”, “secret systems”, “Master-Class courses” and “the top trading formula”... etc.

Well guess what?

Most of the stuff they’re selling is total garbage - they just don’t work.

They’re either pure bunk, or the ideas they present are so obsolete if they were once useful, then they certainly aren’t anymore.

I know, because I make it a habit to test everything these guys are selling.

You need to be extremely cautious of these companies or “gurus”, especially as they don’t necessarily have your best interests in mind. Just remember, they aren’t giving you information out of charity or to help you be successful, they’re selling you something in order to take your money.

For example, there’s a company that sells people a button for trading online!

Yes, a button! When the button goes blue, you buy, when it goes red, you sell.

Does the button work? No. Do people buy it? Of course they do. Because they

want to believe that this profession is easier than it is, or that there is an instant answer to becoming rich and successful.

Then there are the so-called “traders” who are teaching technical strategies that used to work, but which do not work anymore – mostly because so many people know about the strategy that there is no advantage in utilising it.

I remember a year ago I was invited to speak at a forex seminar, and one of the speakers before me was preaching the “awesomeness” of a strategy known as the “European Breakout”. “Oh, the power of the European breakout!” this guy was

“You need to be extremely cautious of these companies or gurus, especially as they don’t necessarily have your best interests in mind”

Alessio Rastani Alessio Rastani is a 10 year financial markets trading veteran, and at the age of 34 has become a widely followed and respected trading mentor.

In 2011 he gained fame and caused controversy when he stated on live TV news that he “dreams of another recession” and that Goldman Sachs, not governments, run the world.

The YouTube clip has since been watched over 2 million times, and Alessio was then interviewed by figures such as Sir David Frost.

Alessio hosts free online training sessions where he gives the most up-to-date information on trading to professionals and newbies on www.LeadingTrader.com

telling us.

It doesn’t really matter what this strategy is, but its main feature is that it is a very obvious pattern commonly seen on the Euro-dollar foreign exchange market - usually at around 7am GMT. I was quietly smiling to myself. The speaker was showing the audience a set of carefully cherry-picked examples of where the strategy had worked, whilst simultaneously hiding the numerous instances where it had failed to work.

After he had finished speaking there came another guy who was pitching an indicator that changes the colour of the price bars on a chart, very similar to the magic button I mentioned earlier.

Finally, when it was my turn to speak, I turned to the audience and said “I understand that many of you have invested in the products of the previous gentlemen who have just spoken before me. But if any of these gentlemen trade their own accounts in the same way as they are teaching you to at this seminar… then they would be broke by now!

NONE of that stuff works.”

There was a silence. I looked at the back of the room to see the organiser of the event looking horrified as he grasped his head.

I then explained to the audience that many brokers and institutional traders are fully aware that retail traders (the uninformed non-institutional traders) are trading obvious patterns like the “European Breakout”. Consequently the institutional traders are now deliberately moving the market in one direction to trick the unwary retail traders.

I joked that most of my trading colleagues, including myself, were now “fading” the obvious signals like the European Breakout i.e. doing the opposite of what the signals originally implied – buying when others are selling short, and vice versa (I should add that we do not just blindly do the opposite, but we also use other pieces of market data for confirmation). I remember I got a very positive response from

the audience in that event. Even the organiser came over to thank me and invited me to come again.

Don’t get me wrong, there are some genuinely good guys out there, and I am lucky to know some of them, but the amount of useless or harmful material you have to get through to find them is getting worse. But the majority of these “secret system” sellers or “secret indicator” peddlers don’t know how to trade at all. They are not really traders more like snake-oil salesmen. And they prey on the one weakness which most people have...

They know that most people don’t want to do the hard work to become successful. Most people want to press that magic button, because it is so much easier.

Don’t believe me? Ask yourself how many of your friends or people you know still play the national lottery!

I believe that what we all want, instinctively, is for someone to come along, hold a bottle in their hands and say to us “Here you go, I have a bottle of ‘financial freedom’. I am going to take this bottle, pour it all over your head, and hey presto - you’re financially free.

Go check your bank account now - you have millions in there!”

I say instinctively because rationally we know that that is not possible. But emotionally, deep down, perhaps it is what we really want.

So you can see why I don’t like the use of the word “secrets” Too many companies are selling people rubbish based on just that one word.

But, that being said, here is my confession...

When I said on TV there are no secrets, that is not exactly true...

In a sense there are some things that could be described as “secrets”, but just NOT the secret garbage that most people in this industry are peddling at you for $5,000 a pop.

And in my next article I’ll let you just what those secrets are. M

MONEYMAKER MAGAZINE | 25

T H E TRA D E

EuROPE

Why Europe will be

left behind

With a financial crisis rumbling on the eurozone outlook is as bleak as ever. The ECB is trying to impact economic fortunes, but success has been limited to say the least n By Simon Smith, Head of Research FxPro

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hen the first winds of the credit crisis started to blow all the way back in 2007, the prevailing view from the European Central Bank (ECB) was that it was largely down to the US and sub-prime mortgage lending practices.

The forecasts remained bullish, and the ECB continued to focus on inflation risks, hiking interest rates in the summer of 2007 and again in 2008. But as time has gone on that perception has gradually eroded, from the eventual revelations of the extent of sub-prime exposure by European banks, to the morphing into the sovereign crisis we are currently experiencing.

Up until recently, there was an obsession with the fate of Greece. This was ultimately a typical sovereign crisis, caused by huge inertia in the public sector and beyond, massive over-borrowing via the low interest rates that euro membership offered, together with the much publicised misrepresentation of the true situation, which only became apparent in late 2009. Since Greece was saved from the brink in March of this year, the focus has shifted back to the banking sector within Europe.

ECB STRATEGY This is just the start of it though. The coming months (and years) are going to see ever greater integration between the banking sector and sovereign crisis in Europe.

The ECB’s actions have already laid the ground for this. Back in late 2011, comparisons were being made between conditions then and what was seen post Lehman’s. Banks were not lending to each other, fearful of the exposure each had to the crumbling sovereign bond markets.

The ECB undertook two auctions, lending money for three years to those banks able to put up collateral (bonds, loans etc.) in return. In contrast to the headline numbers often repeated, the net injection of liquidity into the banking sector as a result was just over EUR 500bn, because banks repaid a vast chunk of other borrowing from the ECB to take up these long-term loans.

The result was the biggest government bond-buying spree by eurozone banks ever seen. EUR 133bn-worth was

purchased by eurozone banks in the first three months of 2012 according to data published by the ECB. This surpassed the previous peak seen in early 2009 when the Fed embarked on its first round of quantitative easing.

This was encouraged, to varying degrees, as a way of moving bond yields lower (principally in Italy and Spain).

In the case of Italy, it was relatively successful. Yields moved lower by over 2% (from above 7% to below 5%), although the upward momentum returned in the latter half of March and also April. For Spain, it proved to be far less successful.

others all to do the right thing and for their current policies to broadly work in the manner which they expect. Their alternative ‘weak scenario’ sees bank balance sheets contracting a further 10%, with bank credit falling over 4%. To sum up, banks will be working against the grain of what is normally required to support the economy.

MOVING FORWARD? There are several implications of this.

First, the crisis has several years to run.

The market enjoys brief periods of belief that we’re on the road to recovery and

“Despite all the positive headlines the ecb’s action was just an elaborate way of further delaying a credible solution” Despite all the positive headlines and the favourable market movements - at least for Italy the ECB’s action was just an elaborate way of further delaying a credible solution. After all, these are loans.

There was no free money on offer.

Some were hoping this money would find its way back into the economy.

The fact is that this was never a realistic option given the state of many eurozone economies and bank balance sheets.

THE RESULT Not surprisingly, the opposite is happening. Overall eurozone lending to households is down nearly 1% from the peak seen in September of last year.

And just as significant, rates for lending to both households and non-financial corporates have also increased by around 0.5% over the past year according to ECB data. The significance of this is that the banking sector is institutionally a key part of the cultural fabric of many European countries. If the bank says no, then in many cases they are few places else to go.

The recent IMF Financial Stability Report (published April 2012) highlighted where the path ahead could potentially lead. Even the baseline scenario sees bank assets declining a further 7% in the coming three years. This would require politicians, regulators, the ECB and

that the worst is over. These will continue to be brief. This is not to say that worse is to come, just that the road is going to be longer that most believe. Secondly, politicians have to tackle the underlying structural issues that they have long made a habit of avoiding, such as rigidity in labour markets and the unaffordability of many state pensions in the face of ageing populations. Thirdly, the answer to the question of when the worst will be over will like be found more in the banking sector and lending data rather than in the economic indicators and surveys.

At different paces, other countries and regions (such as the US) will put the worst behind them. More and more, the eurozone will struggle to keep up in the post credit-crunch world. M Disclaimer: This material is considered as a marketing communication and does not contain and should not be construed as containing investment advice or an investment recommendation, or, an offer of or solicitation for any transactions in financial instruments. Past performance does not guarantee or predict future performance. FxPro does not take into account your personal investment objectives or financial situation and makes no representation, and assumes no liability to the accuracy or completeness of the information provided, nor for any loss arising from any investment based on a recommendation, forecast or other information supplied from any employee of FxPro, third party, or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience.

Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07). FxPro Financial Services, Karyatidon 1, Ypsonas, Limassol 4180 Cyprus.

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T H E TRA D E

education

“the most pertinent question for novice traders should not be how can i make money? but instead how can i avoid losing it”

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FX Class 101:

Cut out the

Mistakes Want to make it as a profitable FX trader? Well the first step to success is to avoid cleaning out your account before you’ve barely got started

t goes without saying that to be profitable in the world of forex you have to have an active trading account before you can think of even breaking even in the markets.

For novice traders, however, this is easier said than done.

Without the required skill or experience gained through years of trading newbies often find that they’re losing money at such a rapid rate that it becomes impossible to keep their account active.

So perhaps the most pertinent question for the novice should not be “how can I make money from FX markets?” but rather “how can I avoid losing money from trading forex?” If you can master the latter then you will have a strong platform from which to project a long and prosperous trading career.

There is, of course, an inevitable attraction to the forex markets for those wanting to make money through trading. High levels of

leverage and liquidity, as well as significant intraday volatility, offer the opportunity for rapid financial gain unlike almost any other retail trading tool available.

However, as with most things, what sounds too good to be true often is. 80% of FX traders lose money, in the most part not because they don’t understand the direction or influencing factors in the markets, but because they fall into procedural trading pitfalls that wipe out their profits, or even their account in its entirety.

The key to becoming a successful trader is to recognise the common mistakes that the majority of traders make, and to avoid them. Then, and only then, can you begin down the road to being a successful currency dealer.

So with that in mind, let’s have a look at the most common procedural errors that are blighting the path of novice traders from turning their forex venture into a successful career, and their solutions:

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T H E TRA D E

education

1. Develop a System Trading randomly is a recipe for disaster.

But as obvious as that statement may seem, it is astonishing how many traders take positions in the market without being able to justify why they’ve done it.

The first, and perhaps most crucial, step on the path to trading success is to take a systematic approach to making trades.

Developing a method of recognising buy and sell signals, trends and turning points, is essential in creating a long term strategy to ensure consistent profits from the markets.

Every trader has their own unique trading style, and that is something that may take time to perfect as you investigate using different technical analysis tools and indicators. These tools are most valuable when they are combined, and so finalising a particular method with technical reasoning that works for you can be a process of elimination and experimentation.

Make sure to keep a record of the methodology behind each trade you make, at least initially, including exit points as well as buy and sell signals. This way you can track the success of your reasoning, and adjust your strategy accordingly.

2. Stay Disciplined Having developed a system and reasoned methodology behind taking positions in the market it is then imperative that you stay disciplined to that system. A system that is often disregarded is equivalent to no having no system at all, a stance that makes it as close to impossible as you can get to make long term consistent profits from FX. Trading outside your system is pure gambling. Only 20% of all traders are profitable, and only a fraction of a percentage of gamblers do likewise.

3. Losing Patience For new traders eager to make their mark, periods of inactivity can often feel like opportunities to make money are passing you by. If you have had a few profitable trades and feel you’re on a role not finding a good indicator to get into the

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“developing a method of recognising buy and sell signals is essential in creating a long term strategy” market can be frustrating, and can often lead to losing discipline.

Overconfidence emanating from a good trading session can be dangerous, as it may lead to overtrading if the market is not immediately conducive to your system. This invariably means taking lower quality or marginal trades, which could quickly eradicate those profits you’ve just banked.

This lack of patience can also be a factor when it comes to chasing losses.

Experienced traders appreciate that sometimes you cannot make back the cost of a losing trade immediately, you have to keep to your system and wait for opportunities. Novice traders will dive back into the markets regardless of whether there is a good trading opportunity available or not in an attempt to claw losses back, but taking lower quality or riskier trades can make a bad situation worse, or at the extreme even put your entire account in jeopardy.

4. Putting Yourself Under too Much Pressure With every commentator or forex analyst reaffirming just how much money is traded daily (somewhere between $3 trillion and $4 trillion depending in who you ask) and how financially successful retail traders can be, it’s understandable when inexperienced currency dealers develop an inflated sense of expectation when it comes to being profitable.

This can of course be dangerous, as it creates pressure to meet an unattainable

level of success. In the current market climate a 10% return should be considered a success, but this is often seen as pedestrian by those seeking higher profits.

The consequence of this is that greedy traders leave trades open for too long, targeting much larger profits than should be expected, or risking too much of their account at one time. This can damage the amount of profit you can achieve from your trades, and will also lower your percentage of profitable trades. Lack of appreciation for correct risk/reward ratios will also mean that your losing trades will be more costly.

“If losses are allowed to run further than targeted profits then every losing trade will have more of an impact on an account than a losing one”

5. Poor Account Management Skills It may come as a surprise that most trades retail traders make are profitable trades (according to a number of Forex platforms we have surveyed). According to our sources approximately 55% of trades are profitable, yet 80% of traders lose money.

How can these facts both be true?

The answer is that traders have a poor understanding of risk/reward ratios. If losses are allowed to run further than targeted profits then every losing trade with have more of an impact on an account than a successful one (i.e. if you target a 20 pip profit on each trade but don’t put a stop loss in until you reach a 100 pip loss, one losing trade will eradicate the profit of five winning trades. At this rate an almost unattainable 81% of your trades would have to be correct to avoid making losses).

Poor risk/reward management is a sure-fire way to making consistent and significant losses, meaning an

understanding of this concept will have an instant impact on your trading account.

By always having a stop loss at the point of your targeted profit, only 51% of your trades would have to be profitable to make a profit overall.

The other fatal money management mistake novices will make is to place a far larger percentage of their account at risk in a single trade than is advisable.

Professional traders traditionally risk between 1-5% of their portfolio on any given position, but for novice traders with smaller account sizes there is a tendency for this to be much higher.

At the extreme, inexperienced market operators may think that waging their entire account on one trade is the quickest way to making significant profits. This is not true. Your aim should always be to be in the market for the long term, as this will present you with the most opportunities to be profitable. You can never be certain of what will happen in the markets, constantly risking it all is the best way to guarantee that you’ll empty your trading account in no time. M

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T H E TRA D E

world markets

More rate cuts to follow down under

With recession and and inflation bearing down on the Australian economy, the time for the Reserve Bank of Australia to act is now n Michael Derks, Chief Strategist FxPro

lthough unexpected by many local commentators, the case for a 50bp rate cut by the Reserve Bank of Australia at its policy meeting in early May was a fairly compelling one. With the nonmining economy in recession and inflationary pressures abating it was clear that the Australian central bank needed to ease financial conditions significantly.

Falling property prices would also have contributed to its boldness – according to the Australian Bureau of Statistics, established house prices fell by another 1.1% in the March quarter, a fifth consecutive decline.

This easing cycle, which commenced in late 2011, has now seen the cash rate reduced by 100bp to 3.75%. The record

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low for the cash rate was 3% in April 2009, when the RBA scythed rates by 425bp over a seven-month period. With local banks likely to be reluctant to pass on the full rate reduction to borrowers, the RBA will likely need to contemplate further action before too long. Judging from both the level of term interest rates and the shape of the yield curve, clearly the market is convinced that there is a lot more to come from the RBA. After the May rate decision, the yield curve between 2-5yr was fairly flat at around 2.85%, some 90bp below the new cash rate.

In the statement accompanying the May announcement, the RBA observed that the exchange rate remained high despite a deterioration of the country’s terms-of-trade. According to the Bank of England’s effective exchange rate index for the AUD, it is currently some 20% above its long-term average and some

50% above the level that prevailed a decade ago.

The exchange rate remains expensive and it continues to weigh on the economy. For instance, over recent months weaker export demand has resulted in a significant turnaround in the trade balance, from a decent surplus to a small deficit. It is also the case that the strong exchange rate has helped to contain inflationary pressures.

Notwithstanding the significant contraction in interest rate differentials vs. other major currencies and this marked slowing of the local economy, the performance of the currency has actually been relatively resilient. Since the start of the year the Aussie has outperformed both the dollar and the yen, is essentially unchanged against the euro, and has slightly underperformed against the pound. The failure of the

currency to be particularly responsive to domestic developments is nothing new.

It reflects the fact that capital flows completely overwhelm trade flows in the Aussie. For example, the Aussie is typically the third most traded currency by retail clients on FxPro’s forex platforms, yet the economy is only the 18th largest in the world ranked by GDP. Also, over recent years sovereign wealth funds have become much more enamoured with the Aussie dollar amidst growing concerns over the soundness of the euro and the policy of deliberate currency debasement being followed by both the US Federal Reserve and Japan’s BoJ. This source of ‘structural’ demand has underpinned the AUD for some considerable time and, moreover, some recent surveys of central bank forex reserve-allocation plans suggest that this AUD demand will remain in evidence over coming years. Similarly, both institutional money managers and high net worth investors have been attracted to the Australian currency, in part because the local banks are wellcapitalised and interest rates are much higher than those on offer in the major

“Over recent years soveriegn wealth funds have become enamoured with the Aussie dollar amidst growing concerns over the soundness of the euro and the policy of deliberate currency debasement being followed by the US federal reserve” advanced economies. Global investors also respect the fact that the Australian central bank does not intervene, and that it has not resorted to quantitative easing.

Looking ahead, it is telling that, after finally breaching parity in late 2010, any forays by the Aussie below that level since then have been brief and met with a wall of keen buyers. At the same time, the Aussie has found it difficult to penetrate 1.10, a level not seen in the post-float era. Indeed, trading the Aussie has been akin to a tug-of-war between those worried by the slower pace of growth in both China and Australia, and those who believe the longer-term fundamentals are sounder than in other major advanced economies. This underlying tension between the bulls and bears has grown over the past year, as witnessed by a sharp rise in the volatility

of the currency. That said, trading the Australian dollar has never been for the faint-hearted.

From a directional perspective, how Europe’s ongoing sovereign debt and banking crisis unfolds will be critical for the Aussie. If the eurozone triggers another wave of risk-repugnance as experienced periodically over recent years, then the Aussie would likely trade through parity. At the same time, it should be conceded that, if Europe’s financial crisis simply rumbles along in the foreground without a major new panic, then this might actually be helpful for the Aussie, for the reasons enunciated above. Those of a more bullish persuasion will point to China, arguing that growth momentum will return in the second half of this year after a difficult first half. M

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T H E TRA D E

technical

food for

thought?

Enticing a crowd of Hong Kong and Singapore-based hedge fund managers, investors, and service providers away from the office at 4pm (as London becomes active) to listen to a couple of speakers and several panellists heap praise on the latest innovation in risk aggregation and standardised reporting would be difficult at the best of times. n By David Munro

ut Simon Ruddick, co-chair of “Open Protocol Enabling Risk Aggregation” and the host of the Hong Kong and Singapore events (through his hedge fund and alternative investment consultancy Albourne Partners) figured a bit of wordplay could solve attendance concerns. He confessed that the Hong Kong event may have been mentioned as an “open bar with a protocol” gathering and the Singapore version as “open buffet with a protocol.” Aside from precisely identifying the gastronomic preference of the rival financial centres and thus assuring full attendance, Mr. Ruddick excelled as a stand-up comedian. When one of the panellists emphasised the importance of data integrity in order to avoid a “garbage in - garbage out” scenario, the host agreed, in a somewhat selfdeprecating fashion, that garbage in - garbage out was the domain of consultants.

I attended the event out of an obligation to remain current on advances in risk management – a topic potentially as dry as dust – and found the soiree both entertaining and informative.

Risk Managing the Last Disaster As disasters mounted; first housing in 2006, then credit in 2007 and finally equities and everything else in 2008, hedge fund investors and regulators

demanded more detailed and transparent risk information from hedge funds. They wanted data on market positions, counterparty exposure, operational procedures and a host of other metrics.

Risk and regulation requirements have a nasty habit of being ignored or lightly applied when economic times are good, and becoming onerous and oppressive just after markets have crashed.

Unfortunately the reactionary risk information requests from investors were as diverse as the number of languages spoken in Toronto (150) and everyone had their own carefully-crafted excel-based template to be filled out. Hedge fund risk management departments exploded in size as they tried to keep up with the disparate demands for information.

Nobody Unzips the File An interesting dialogue emerged between a hedge fund manager, who claimed that “nobody unzips the [risk management report] file,” and an investor who lamented that they often suffer from information overload. There are too many different formats and investors can’t harvest the risk. Not only are they speaking different languages, they are often too busy to get a translator.

Speak One Language The hedge fund industry decided that a common

MONEYMAKER MAGAZINE | 35

T H E TRA D E

technical

methodology or language was needed to define and report risk, and that they should be instrumental in the creation of this protocol. Their goal was to develop one consistent reporting metric for the entire financial investment industry, and they decided to start with hedge funds. Left to their own devises, the regulators would undoubtedly have concocted something unworkable and irrelevant (and not standardized amongst regulators from different jurisdictions), and investors would have continued to invent a smorgasbord of disparate risk report templates.

In 2009, a diversified working group was formed that included four prominent hedge funds, several large hedge fund investors, administrators, companies that provide risk management software, prime brokers and information providers.

Regulators were absent from the group, though they were consulted throughout the process.

The main objective of the Risk protocol is to be open and inclusive. Taking a leaf from Jeff Howe’s book Crowdsourcing, where “the power of many can be leveraged to accomplish feats that were once the province of the specialized few,” the open risk protocol sought the input of all.

(Never mind that one attendee in the risk management business mentioned after the event – during the buffet protocol - that in the early stages the open protocol was password-protected and he couldn’t easily participate).

collection, collation, calculation and conveyance of financial risk information. And transparency would be paramount.

“The Open Protocol Risk Enabling Aggregation” environment provides precisely what investors need to be able to amalgamate the risks from many hedge funds and to have some confidence that the numbers mean what they say. Standardized risk and return information will allow investors to make easier comparisons between the many funds that are vying for their dollars. Standardization will also enable investors to have more meaningful discussions about positions with their fund managers.

“Too much emphasis has historically been placed on one or two key numbers such as leverage or Var”

Holistic Approach to Risk Too much emphasis has historically been placed on one or two key numbers such as leverage or VaR. The speaker professed that it was not the actual number that mattered, but how you arrived at the number. Both leverage and VaR mean different things to different people. And for many investors, VaR means nothing – or at least nothing you can rely on to accurately represent risk.

An analogy linking leverage to soup was presented. Instead of serving one soup (leverage number) to all, why not list all the possible soup ingredients and let the investor choose which ones would lead to the most pleasing potage. Each investor gets the soup he wants and the chef (hedge fund) can focus on providing the freshest ingredients.

The Four C’s To get investors back into the habit of investing, especially after they had perfected the art of divesting in 2008/09, it was imperative to provide them with clean and consistent

36 | MONEYMAKER MAGAZINE

A Simple 2 by 2 Investors will ultimately decide what information they receive, but most hedge funds will feel compelled to provide the standardized information. The moderator suggested that a simple 2 by 2 matrix lists the options available to hedge funds. If your performance is good and your risk reporting transparent, you are in the best quadrant. Poor performance, coupled with a lack of transparency will be the kiss of death.

Risk Measurement VaR is a risk tool that is reported by many but useful to only a select and perhaps misguided few.

One of the biggest potential risks mentioned at the meeting was that standardisation may lead to greater focus on specific risk measures and that focus would actually introduce systemic risk. The US regulators were most concerned with systemic risk and specifically how to identify it. They wanted to narrow down the universe of things to look at.

And therein is exposed a salient point. The Open Protocol Enabling Risk Aggregation takes much information and allows investors and regulators to aggregate it – to make their own soup. Sometimes risk is best identified by a few simple metrics. When products and positions are complicated, we need to simplify the comprehension of risks. Let’s hope that this risk protocol enables investors to simplify complexity.

Practical and Accessible What use is the open risk protocol for the average individual or trader? Go to the website and download the manual. http:// www.theopenprotocol.org/top/download. If you trade, or plan to trade, for yourself, for a managed account for a larger pool of investors, this manual could be a valuable tool to consult in setting up your own risk and reporting procedures. M

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T H E TRA D E

charting

charting tools:

chande momentum oscillator Take another look at momentum with Tsuhar Chande’s Momentum Oscillator, by Declan Fallon of Zignals.com What does it all mean?

The Chande Momentum Oscillator is a price based momentum measure. It’s similar to other momentum indicators like Relative Strength Index (RSI) and Stochastics because it’s range bound, but differs because it uses up and down days for both the numerator and denominator, thereby directly measuring momentum.

How does it work?

The Chande Momentum Oscillator numerator is the difference between the sum of difference between today’s close and yesterday’s close and the absolute value of the difference between today’s close and yesterday’s close on down days. The denominator is the sum of the aforementioned variables. The result is multiplied by 100 to give the -100 to +100 range. The defined time period is usually 20 periods.

The calculation is applied to unsmoothed data. Therefore, short-term extreme movements in price are not hidden.

An asset is oversold when Chande Momentum Oscillator is below -50 and overbought when above +50. At +50, up-day momentum is three times the down-day momentum; at -50, downday momentum is three times up-day momentum.

So what are the signals to look for?

When the Chande Momentum Oscillator crosses above its 9-period EMA a buy signal is generated. Likewise, a sell signal is created when the Oscillator crosses below its 9-period EMA. An alternative strategy is to trade in the direction of the trend when the CMO reaches an extreme, use minor corrections in price to take a position. On the flip side, Low Chande Momentum Oscillator values usually

38 | MONEYMAKER MAGAZINE

The Chart: EURUSD from Zignals.com charting application

mean a trend change is imminent.

Price patterns like triangles, wedges and head-and-shoulder patterns can also be mimicked in the Oscilator.

In the EURUSD example, The Chande Momentum Oscillator reached an overbought condition in early March and triggered a ‘sell’ trigger, but the Oscillator continued to show strength throughout March into April and pullbacks were opportunities to enter trades in the direction of the trend.

It was only in May when the Oscillator fell below the zero line that a warning was given of a trend change. There was also a bearish divergence for the first half of March, although it was negated by early April on the second move of the Oscillator to the overbought line.

By late May the Oscillator was close to oversold before a ‘buy’ signal was triggered in early June. Unfortunately, the rally failed to see the Oscillator reach an overbought condition. The Oscillator then entered a lengthy spell around the zero line, indicating trend weakness until

the price breakdown in September.

By late September the Oscillator reached an oversold condition as trend strength intensified. The signal line suggest a ‘buy’ signal is imminent, although given bearish momentum an alternative strategy is to look at shorting opportunities when the Chande Oscillator approaches zero. Because the Oscillator made it all the way to an oversold state there is an opportunity for a bullish divergence to develop over the coming weeks.

When do I make my move?

Crosses of the signal line offer the entry opportunities. But given an Chande Oscillator overbought and oversold condition is 50 points away from the maximum extreme (i.e. +100 or -100) it’s important to ensure adequate risk management is employed on any position taken. This can include the use of stops and/or using the Chande Momentum Oscillator in conjunction with other technical indicators.

The full financial picture

Try EuroInvestor Cockpit for free!

Visit www.euroinvestor.com/cockpit - Go navigate the financial markets

MONEY MAKER MAGAZINE | XX

T H E TRA D E

copy trading

currency trading goes social Alex Case, product manager of the new social trading platform OANDA FxUnity, discusses the ‘socialisation’ of currency trading and how to avoid common pitfalls when you trade esterday’s social media trend is today’s bona fide channel of information. For many of us it’s become routine to connect with an everwidening online network of ‘friends’ to share news, ideas, photos, and pithy observations about life and work. With social media now such a natural part of everyday modern life, it seems obvious that an information-dependent practice such as currency trading would make use of this new channel.

Forex traders rely on timely information to make trading decisions. They gather this information from a variety of sources that, depending on the trader’s level of market understanding and experience, are more or less useful.

Now, social networks and globally active media hubs are part of a currency trader’s actionable information mix. In addition, social trading platforms like OANDA fxUnity have emerged that let users share information and copy each other’s’ trades in a single click.

The socialisation of market sentiment OANDA is a leader in forex market technology and innovation, so we view the ‘socialisation’ of trading as a natural area for our participation. We saw that there was a segment of the trading public not being

40 | MONEYMAKER MAGAZINE

served by the existing platforms designed for more serious, professional traders. In response we built fxUnity as a user-friendly, interactive platform that encourages people to learn trading by actually trading.

On fxUnity, users can trade individual currencies while simultaneously weighing the market sentiment, connecting with other traders, and following each other’s’ trades. A user can view and copy other trades being made on the platform, seek out and add other users as friends, and send messages to one another. Users control all of their own privacy settings within their Preferences, so they can choose to keep their trades hidden from other users, or only share activity with their friends.

Trading social: know your risks With the growth in social trading platforms, some forex brokers have begun passing on hidden fees to make users pay for third-party social features they deem as “extras”. Users should read the fine print when registering for a trading account that offers social features. They need to be aware of extra costs that may be charged through inflated spreads. To avoid these unnecessary fees, it makes sense to choose a platform like OANDA fxUnity that is transparent about costs and does not charge extra for features inherent in the platform.

Always be wary of ‘friendships’ established in a social media context.

Though most people have good intentions and participate in online communities for positive reasons, it’s impossible to weed out 100% the spammers and get-rich-quick scammers who aim to take advantage of others. OANDA fxUnity users who find another community member’s behaviour offensive may block that person. The platform interface also allows members to report offensive or abusive content to protect the whole community.

When trading socially, there is also a risk of depending too much on the peer community for trading strategies. The goal is to follow and emulate other traders while one develops trading skills, and learns the ins and outs of the currency market. Merely copying the trades of successful ‘friends’ on the platform—rather than copying without the insights behind these decisions—defeats this purpose. Be aware of a tendency to do this and take advantage of the community to discuss the markets and monitor trading sentiment.

Finally, it pays to remember that—unless one is using a demo account—there is real money at stake when trading on platforms like fxUnity. The markets can move very quickly, so users must be careful to never risk more money than they can afford to lose. To protect users from unnecessary extra risks, the fxUnity platform only offers leverage up to 20:1 and limits deposits to 1,000 units of currency. M More information on OANDA fxUnity is available at https://fxunity.oanda.co.uk

“with social media now a part of everyday modern life, it seems obvious that an information-dependent practice such as trading would make use of this channel�

wine

invest

Investing in fine wine Low risk, high reward and consistent returns. What isn’t there to like about becoming a part of one of the fastest growing markets available - investment grade wines l Chris Smith, Investment Manager, The Wine Investment Fund

T

he traditional notion that wine investment is about buying two cases of young wine so that, after a period of maturation, you drink one case and sell the other to finance both may have a certain romantic appeal.

As an investment philosophy, though, it is heavily discounted by today’s serious investor.

Investment is all about risk and good investment choices are made when the exposure to risk is clearly understood.

What may surprise many is that an investment in fine wine has consistently been a low risk investment opportunity compared to oil, the FTSE 100 and even gold. Combined with strong absolute performance and low correlation to other assets, that has led wine to find a home in many serious investment portfolios.

Those interested in accessing the fine wine market have more options available to them than ever before with a range of tax-efficient structures available. The timing looks opportune too: prices came off significantly in 2011, leaving the possibility of a substantial upturn in the medium term, and inflationary fears are enhancing the attractiveness of physical assets.

Supply and Demand It is the underlying supply and demand characteristics of wine which make it attractive as an investment proposition.

On the supply side, Bordeaux (considered by many to produce the only investment grade

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wine) is a finite geographical area in France with an essentially fixed number of wine producers (châteaux). The initial supply of wine is therefore finite, and over time can only fall as bottles of the wine are consumed.

Meanwhile demand tends to rise, for two reasons. First, the quality of the wine improves over time as it matures, making it more attractive to drink. Second, global demand continues to rise as new markets for the wine open up. In the last 25 years alone we have seen Japan, Russia, Korea and China ‘discover’ fine wine and consume it in large quantities, with countries such as India and South America yet to come ‘on stream’.

Risk, Returns and Correlations Because of these underlying characteristics, the data shows that wine can be just as attractive an investment as it is a drink – if not more so. The longest reliable data series, going back to January 1988, shows cumulative annualised returns of 12.7%: the equivalent figure for the FTSE 100 is 4.9%.

Moreover wine provides a much less bumpy ride than stocks and shares. Since 1988, taking every possible 5 year time period (i.e. January 1988-January 1993, February 1988-February 1993 etc, a total of 232 periods), wine has shown a negative return in just one period, and that of only -1.1%; the FTSE 100 has seen 67 negative periods with the worst being -39%. The full distributions of returns for the two series are shown in the graphs across:

“Since 1988 wine has seen a negative return in one period, the ftse has seen 67” Another claim often made in favour of fine wine is that its performance is not correlated to those of traditional assets, enabling wine to play a useful diversifying role in a wider portfolio. Indeed, the long run correlation coefficient between the FTSE 100 and the fine wine market is 0.03, where +1.00 is a perfect positive correlation and -1.00 a perfect negative correlation. This indeed suggests that there are virtually no links between the performance of wine and equities.

The full story is a little more complicated as in periods of extreme financial market stress wine prices are also affected. Importantly, though, falls tend to be smaller and over a shorter period than equities, and prices tend to recover more rapidly – hence the positive long-run returns shown in the right hand graph above.

Accessing the Market As mentioned at the beginning of the article, the traditional means to invest in fine wine was via personal ownership of cases of wine. This required using merchants to source and sell stock, which meant incurring heavy broking charges, receiving potentially conflicted advice and having to deal with the time-consuming aspects of handling what is a physical asset.

As the asset has become mainstream a variety of routes of market have emerged – unfortunately not all of them legitimate, as some recent press reports have highlighted. However in the last ten years (beginning with The Wine Investment Fund, TWIF, in 2003) investors have had the option to purchase units in a

fund – a method which avoids all conflicts of interest and allows full diversification by pooling your assets with those of other investors. TWIF is also SIPP-able.

Most recently, investors have had the option to buy shares in The Wine Enterprise Investment Scheme Ltd, a tax wrapper which provides a 30% up-front rebate on your investment plus returns which are free of capital gains, inheritance and income tax.

Market Timing An attractive wrapper is obviously beneficial to investors, but the important point is that the underlying proposition should be sound. We have seen that wine has inherently attractive characteristics. However returns can be much enhanced by entering the market at a level where valuations look attractive, and the current market does appear to provide this opportunity – having seen a correction of around 22% in the second half of 2011.

The economic environment also provides reasons to be bullish. Wine is of course a commodity, and such physical assets become more attractive when inflation is high or rising as their value is not eroded in the same way as banknotes, savings accounts and government bonds. Not for several decades have inflationary fears been such a prominent part of the financial landscape as today, with governments around the world practising loose monetary policy.

Given this background, it is hardly surprising that more investors than ever are looking to uncork the potential of fine wine.

MONEYMAKER MAGAZINE | 43

invest

wine

Wine investment what is all the fuss?

W

ine investment has become a phenomenon that has garnered a great deal of interest in recent years. Fine wine has traditionally been a luxury product enjoyed by the elite of society and a sign of wealth, class and distinction. However, with its worldwide appeal and investment possibilities, it appears to be the hot asset in everyone’s portfolio. The growing appeal is based on the global demand not just in Europe and North America, but the ever influential Asia and especially from China and Hong Kong. Russia, India and Brazil are also increasingly getting involved in the ever expanding industry.

Although wine is a product that is produced each and every year, it is only the great wines from the great vintages that are considered true investment opportunities. As the supply decreases due to the enjoyment of the wine, the demand becomes greater causing the price to rise. With fine wine becoming a global phenomenon, this demand creates even greater pressure on what little is left of the Great Vintages (e.g. 1945, 1961, 1982, 1989 etc...)

Traditionally Bordeaux and Burgundy in France have produced the most desirable wines. Bordeaux has its

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classification of Châteaux with just five classified as 1st Growth, Château Lafite Rothschild, Mouton Rothschild and Château Latour being the most famous.

Burgundy’s more complex method of classifying the vineyards into Grand Cru and Premier Cru sites (and an exceptionally small total vineyard area) leads to a far smaller production of the finest and thus most valuable wines.

Domaine de la Romanée Conti stands out amongst the rest, though there are many other that warrant mention. In recent years, popularity of the finest wines in Italy, Australia and USA have also joined the list of “Blue Chip” wines.

A key reason for such a keen focus on wine investment can be put down to the avoidance of paying the various taxes implicated with investing. Firstly, all wines are purchased and stored under bond, meaning the duty and VAT is not paid. Provided the wine is kept under bond, it will never incur duty or VAT regardless of the numbers of times it is traded. What is more, HMRC considers wine to be a perishable good, that is to say has no useful life beyond 50 years, and as such is not subject to Capital Gains Tax. Another very appealing reason to consider adding wine to your investment portfolio.

Key pointers to consider when investing in wine: l Wine Investment should be looked at as medium to long term investment l The Value of wine can go up and down – be sure to know which wines are which! l Wine should be purchased Under Bond l Purchase wine only from reputable and trustworthy merchants, as the wine is never actually seen. l Store wines in a professional bonded warehouse account. l Always check the provenance (where the wine has come from) and how the wine has been stored. l Build a diverse portfolio, investing in just one or two wines can be risky as trends and popularity can change. l Always speak to an Independent Financial Advisor or visit www.hmrc.gov.uk prior to investing in wine. Wine investment is like any other asset can go down as well as up in value.

invest

ART

46 | MONEYMAKER MAGAZINE

a new wave of

eastern promise We sit down with Hua Gallery owner and Chinese contemporary art expert Shanyan Koder to learn more about one of the fastest growing investment areas in art

How did you first become interested in the art world?

I was born and raised in Hong Kong, and I come from a collecting family so I’ve always had a love of art from my childhood. It would always be very much of a family decision when we collected pieces as well, so that aspect of the art world has always been part of my life and I knew quite early on that it was an interest that I would one day want to pursue as a career. It was a natural progression for me.

So once you had decided to branch into a career in art, how did you go about breaking into the industry?

I began by studying at Cambridge University, and then shortly afterwards I went to work for Goldman Sachs in Hong Kong and then London in order to learn more about business. After about five years in the business world I felt that I’d garnered enough experience, and so decided to pursue my passion in art. I began by working for Sotheby’s, working under the chairman of Asia for Sotheby’s.

And how did that lead to the opening of the Hua Gallery?

Two years after starting at Sotheby’s I decided to pursue the goal I had set for myself, namely opening my own gallery, focusing specifically on the Chinese contemporary art market. Chinese contemporary art is part of my heritage and art that has always

fascinated me. After the financial crisis a lot of galleries had closed, and there was at the time no gallery in London that specialised exclusively in Chinese contemporary art. So I identified a gap in the market and decided to fill it. That was how Hua Gallery was created. I opened the gallery about a year and a half ago, and now we pride ourselves as being the only gallery in London that specialises in Chinese contemporary art.

How is Chinese contemporary art viewed by the general public?

Contemporary Chinese art is well established, and has continued to fascinate collectors from across the world. It’s very intriguing, and a lot of it is quite controversial. There has been a lot of commentary about artists whose art has been quite contentious and political, and how the government has responded to that. But I think at the moment the demand for fresh and innovative art from China is increasing. A lot of the established Chinese contemporary artists’ work has been consistently themed, focusing on social commentary, and I feel that although that genre of art is still selling very well and is widely recognised as being what Chinese contemporary art is all about, now is the time to try to push the next wave of ideas and inspiration. That it what we are trying to do at the Hua Gallery, to represent new and inspirational works by established artists, but also to show emerging artists who haven’t been discovered internationally yet.

MONEYMAKER MAGAZINE | 47

invest

ART

Where is the gallery? Are there any then exciting exhibitions coming up?

We’re based in the Albion Riverside in Battersea, a prestigious riverside development designed by Foster and Partners.

The exhibition currently on show at the gallery is an exhibition by a ChineseAmerican artist called Beili Liu, she’s a great example of the new wave of contemporary Chinese art and the type of art we represent. A lot of her work is atmospheric and poetic. As an artist she has exhibited in galleries across the US, and I have the pleasure of introducing her to Europe.

Has the Western appetite for contemporary Chinese art remained consistent or has there been an increase in recent years?

There has definitely been a demand growth in the West in the past five years, and it’s fair to say that the Chinese contemporary art market as a whole has seen a transformation in that time. The market has grown from approximately $0.8 million back in 2002 to close to $170m in 2010.

How has Chinese contemporary art developed from its origins to the present day?

I think the most important timeline when we talk about Chinese contemporary art starts before 1979, when most Chinese artists were operating relatively independently from the outside world. At that time Chinese artists were dedicated to their own form of social realism, so the art produced was very anti-Soviet. Chairman Mao died in 1976 and there was a new leader Deng Xiaoping, who began to liberate the Chinese economy and this began to have a huge impact on the art scene in China.

A breakthrough group called Star group (Xing Xing) were the first to take art out of the official circle, that was the signal for the start of anti-academic, politically charged art. From about 1985 we can see the true beginning of contemporary Chinese art, after the government relaxed laws on censorship and more exhibitions were allowed to take place.

After that development has been quite transformational in the past 25 years.

There were important exhibitions that

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took place across the world from the 1980s onwards, including a landmark exhibition at the Pompiedou Centre in Paris called “Alors la Chine?”

Are there contemporary artists in China who are household names, is their art that popular yet?

Definitely, probably the most wellknown is Ai Weiwei. He was shown at the Tate Modern about two years ago, where he exhibited porcelain sunflower seeds spread across the entire floor of the Turbine Hall. He has been arrested and released numerous times by the Chinese

Government because of the political nature of his art, so he’s certainly very much of a household name in China.

Another artist, Yue Minjun, is very popular. We’re showing one of his small sculptures in our upcoming exhibition.

You can recognise his work because he always paints pink men with huge faces smiling and with really glaring white teeth. The technique that he uses with the repetitive smiling faces is very similar to the techniques used in advertising and propaganda posters back in communist China. It has very much of a pop art effect and is a commentary on the political regime.

And are there emerging artists on the brink of breaking through onto the international stage?

Despite the fact that there is a lot of politically driven art that has done very well since the 1980s, now we’re in 2012 I really feel that it is the time for the new wave of Chinese art to begin, and I think people are trying to look for new art and fresh contemporary art within China.

One such artist is Yi Xuan. He’s a Buddhist, and his art is very spiritual and inspired by meditation. Another one of the artists I represent Han Zhongren is an environmentalist and he has a lot of things to say about climate change and the clash between nature and the City. Given the economic boom in China and what the impact of that on the country has been, this is a very current topic.

What would be the most accessible contemporary Chinese art for someone new to the movement?

The next exhibition I’m going to show is called Art for the Masses; it’s fun, accessible and quite a good way to get into contemporary Chinese art because all of the exhibits are from renowned artists, including Yue Minjun and Zhou Chunya’s famous green dog. These really are renowned figures of the Chinese contemporary art world. What they’ve done with this exhibition is create a series of art toys which I think are really accessible to the general public because

“Chinese contemporary art in particular presents some really exciting opportunities for investors” they’re fun, approachable and culturally relevant.

The installation at the gallery at the moment is a work by Beili Liu called Lure London, and is created with thousands of red threads suspended from the ceiling.

This is inspired by the ancient Chinese tradition of the red thread, which tells that when children are born invisible red threads connect them to the ones who they are fated to be with. It’s a beautiful installation and a wonderful philosophy, and really appeals to newcomers to Chinese contemporary art because of its aesthetic qualities.

Does that make Chinese art a good investment for amateur collectors?

Absolutely. I think contemporary art is

one of the most investible areas within the art world. Contemporary art in general is very speculative and people who invest already know that but I think Chinese contemporary art in particular presents some really exciting opportunities for investors. The growth in the market recent years is due to the government in China investing so much in allowing for artists to develop. Every indication is that the trend is only going to be upwards.

Finally what advise could you give to people getting into investing in Chinese art?

Where should people look to purchase art from?

Well the Hua Gallery is a great place to start in terms of where. Of the artists I represent I would suggest Belli Liu. She is a wonderful artist, she isn’t known across the world outside of the USA yet but I think she will go far, making her an attractive investment opportunity.

Yi Xuan is another artist who has a lot of talent and a huge following in China but is relatively unknown across the world yet, so he is a definitely a name to watch out for.

I think if you’re looking to invest then obviously there are a lot of established artists whose politically themed work is well known as desirable. However I do think it’s more exciting and there’s more investment upside in looking for looking for the next wave, be it abstract art, installation art, sculpture, design, which is really what the Hua Gallery is trying to specialise in.

MONEYMAKER MAGAZINE | 49

lifestyle

hotel review

Le Manoir aux Quat’Saisons Armed with nothing more than a pen and a scrutinising palate, we head to Oxford to test out whether Le Manoir aux Quat’Saisons can live up to its reputation as the best hotel restaurant on the UK

R

aymond Blanc is one of the most celebrated chefs residing in the UK, and whilst his television programmes are incredibly popular, it is restaurant Le Manoir aux Quat’Saisons that is the Frenchman’s most famous asset.

Pulling up at the hotel’s gravel drive is a transportation from one world to another. The hotel’s beautiful décor and tranquil atmosphere is a million miles away from oppression of the London streets we’ve been traipsing through all day. When we step inside and are taken to our room we find it impossible not to lose touch with reality, and instead be immersed in the perfect creation Le Manoir has spent over three decades developing.

The rooms and suites at Le Manoir are individually designed to the highest specifications, engulfing residents in opulent luxury unparalleled in any other countryside hotel getaways the length and breadth of the land. Each of the 32 domiciles has passed the scrupulous eye of Raymond himself, and has succeeded in achieving the meticulous standards of perfection that the great man sets himself in the kitchen.

Our room is called Jade, and is described by the excellent guide accompanying us to our door as being inspired by Raymond’s travels to the Far East.

Dark hardwood floors and furniture are set immaculately into a jade green background, giving the suite a classically chic, yet still cosy and intimate feel.

A seating area complete with a stylish dining table, coffee table, sofas and electric fireplace is backed onto by an open-plan bedroom, decorated faultlessly with stylish simplicity. It’s hard not to be awed by the regal impression the Jade suite leaves upon you.

But before we’re entwined into the hedonistic escapism the Jade suite is conjuring before our eyes we remember why we’re here, and that’s to dine at Le Manoir’s two

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Michelin starred restaurant, commonly accepted as the best hotel restaurant in the UK. After a short detour to the hotel bar we make our way through to the imperious dining room where Monsieur Blanc has wowed so many guests for the past three and a half decades.

As we sit down all the hype has us in two minds about what’s were about to have laid before us. The question is, will the constant barrage of superlatives we’ve been koshed with for the preceding weeks take the edge off sampling the reality? After all, if you’re expecting culinary perfection you’re left with little room to be pleasantly surprised, let alone impressed.

However, any reservations or worries that we’re about to be disappointed that might have been lingering at the back of our minds are instantly put to bed, as one mouthful of Le Manoir’s cuisine is enough to let you that the accolades and acclaim the restaurant has garnered over the years haven’t been for no reason.

All of the six courses of food and wine we opt for are divine, from a duck foie gras with quince and gingerbread beginning through to a deconstructed tiramisu finale every course is sparklingly mouth-watering from first bite to last.

The restaurant staff were fantastic in guiding us through each course and the accompanying wines, selected for us

by Le Manoir’s expert sommeliers. Every part of cullinary experience matching the quality of the food that kept coming from the kitchen.

As we left the restaurant and sauntered back to our suite awed by everything that we’d shared over the past hours, and collapsed into bed more satisfied from an evening of dining than either of us could remember.

After a fabulous breakfast the following morning we venture out for a morning stroll through Le Manoir’s exquisite gardens. Crisp air makes for a delightfully refreshing change to the overbearing clamour of the City, and just an hour meandering through multi-coloured borders and woodland terrain any lingering thoughts of the usual weekday grind are long gone.

But back to the grind is where have to go, because our stay has come to an end all too soon.

“one mouthful is enough to let you know that the accolades and acclaim the restaurant has garnered haven’t been for no reason”

lifestyle

lisbon

Lisbon: The Explorer’s Outpost Portugal has had a famous sea-faring history, bringing science and geography to the world. Mark Southern went exploring to see if the city still had an adventurous spirit.

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or the eternal optimist, there is always something positive inhabiting the ethos of every city on this blue planet. In the same way The Beatles’ influence still looms over British music nearly half a century later, the founding fathers of a city imprint a philosophy upon it, which will permeate its core forevermore, creating the aura for its future.

Paris rightly earns its label as ‘city of love’, not because of modern values but because of the passion of the Revolution, and the romance of centuries of poets and artisans long since parted.

New York’s unbridled energy and sense of purpose is unique not because of any recent phenomena, but precisely because its defining citizens held the unshakable belief in its power to change the lives of those within its limits.

It takes just one step into the Portuguese capital, Lisbon to feel a similar sense of identity, and it’s evocative, exciting and intoxicating; Lisbon is the spiritual home of exploration.

The great explorers from human history, who mapped the world we now know, saw Lisbon as their home, and many of the greatest voyages were planned and sailed from this historic yet contemporary town on the West coast of Europe. And how it shows.

A sense of mystery and magic fills the air of the cobbled streets, with expensive boutiques crammed in next to each other along its vertigo-inducing hills, whilst museums of science and seafaring stand magnificently amongst its memorials to the men who made history.

Columbus learned his craft in this town, and used its location to strategic effect throughout his legendary life, and these days the world’s cruise liners have followed in his illustrious footsteps, with many cruise ships moored in the medieval harbour at any time.

The very best explorers combined both bravery and a sense of destiny, and the city in which they made their name still pulses with these instincts. If you feel like you need more adventure in your life, and let’s face it, who doesn’t, then this is one exploration you won’t want to miss.

“it takes just one step into the portuguese capital to feel its sense of identity - lisbon is the spiritual home of exploration”

Where to Stay Lisbon’s a relatively big city, but it’s not the size that makes it tricky to get about on foot; it’s the hills. Even Edmund Hillary would be daunted by the incessant inclines around every corner, so choosing a central location is by far the best bet.

Fortunately, located in the perfect location is the best hotel in town, the Tiara Park Atlantic Lisboa, and it’s a dream destination in its own right.

Perched towards the top of one of the many vertiginous slopes, the hotel surveys the entire city from its lofty position, and lives up to its billing as the only place to stay in Lisbon. In fact, so

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lifestyle

lisbon

grand is its position, and so spectacular are its views, that if your holiday snaps aren’t dominated by photos taken from various viewpoints around the hotel, we’ll, well, we don’t know what we’ll do, but we’d be surprised.

From the large open lobby, to the spacious rooms and suites, classic decor combines with a tastefully modern edge across the Tiara Park Atlantic Lisboa. The hotel simply oozes charm and excellence, and it’s no surprise when we find out that it is where visiting dignitaries and A-listers stay.

Service at the hotel finds the right balance between attentive and relaxed, and the restaurant is first class, with a fine dining menu to rival anywhere in town.

Food is also something of a specialty here, and the fine dining restaurant offers food of such high quality that it’s tempting to not venture out of the hotel.

A wonderful hotel experience, and one not to be missed. l www.tiara-hotels.com

Where to Eat Despite recent assertions by ubiquitous fast-food chains, Portugal isn’t all about cheap piri-piri chicken. In fact, and with good fortune, the dubious joys of Nando’s are a long way from authentic Portuguese cuisine, which is good news for diners, but bad news for plastic novelty chicken manufacturers the world over.

Instead of cheap chicken, fish rules the waves in Lisbon, with fresh seafood the order of the day everywhere. Indeed, with

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fishing boats coming in 24/7, it’s likely the fish on your plate was swimming in the sea just hours before, and restaurants priding themselves on the quickest boat to plate times. Some claim just ten minutes; see, we said it was fresh.

The very best place to eat in town is Bocca, which serves up a truly sensational tasting menu that has to be tried to be believed. From mackeral to suckling pig, and from pineapple to tangerine, the menu traverses the flavour spectrum, creating explosions of pure joy on the palette. l www.bocca.pt

Where to Party Portugal is a party country, and Lisbon takes its role as the capital of nightlife very seriously indeed.

The tight, winding streets of Bairro

Alto lend themselves perfectly to become the stage upon which the nightly partying throbs and thrives. Cafe culture bars spill out onto the streets, with locals and tourists mingling in a happy bustle, creating a great vibe of positivity and joyful fun.

For those of more calm disposition, the marina has wonderful restaurants set back against the calm sea and spectacular bridge, and shouldn’t be missed.

found on just two wheels. Two, segway wheels.

The exceptional segway tour takes segwayers around the old town and the new, on its high-tech gadgetry. The clued-up guides delve into the city’s real history, to provide insight into its past, present and future, and you’ll see everything you need to aboard the magic machines.

Don’t miss out on it. l www.lisbonbysegway.com

Something Different

Culture Lisbon is a city with some pretty major history, and it’s no surprise that it rates highly on any cultural scale. Museums jostle with Baroque architecture for prominence, whilst music flows out from every window into the cobbled streets.

The magical history of the place is intoxicating, and it seems unfair to cherry pick just one must-view place.

However, the Castle of Sao Jorge is the crown upon the city’s head, and it really shouldn’t be missed.

The castle gazes out across the ocean with an impenetrable air of supremacy, and its medieval origins provide a suitable grandiose garland on top of the white-washed buildings below.

It’s worth taking the time to do the guided tour, as the personal stories are plentiful and eye-catching, but be

“the hotel finds the right balance between attentive and relaxed, and the restaurant is first class”

In 1998, Lisbon hosted the World Fair, leading the city to open their Expo Park.

Like many such events, the regeneration of the area created a bit of a vacuum once everyone had packed up, but the area still holds a must-see museum for anyone with a hint of aquatic curiosity.

The Lisbon Oceanarium is a truly remarkable science project, that houses one of the largest aquarium tanks in the world, holding 5,000 cubic metres of water, and playing host to over 100 species.

The tank is split into four glass zones, each replicating a different habitat, from Antarctic coast line to Indian coral reefs. l www.oceanario.pt

Getting There warned; you will almost certainly want to build a turret on your own house once you leave. l www.castelodesaojorge.pt

Getting About One thing you will learn very quickly in Lisbon is that those hills are not meant for walking, and so taxis and trams are your friend. However, the very best way of seeing the city from the ground is

In the true tradition of great Portuguese explorers, it’s far more fun to come to Portugal via a short trip along the coast line, rather than fly straight in.

Fly into the ruggedly beautiful Alentejo, on Sunvil’s excellent route from Heathrow, with what feels like a private plane escorting you to your destination.

From there, hire a car for the gloriously pleasurable drive up along the coast to Lisbon. l www.sunvil.co.uk

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lifestyle

hotels

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Top 5

Tennis Hotels With Wimbledon fast approaching, it’s traditionally the time of year when fair-weather Federers dust off their racquets and book up their local courts, only to forget about it for another 51 weeks. Mark Southern got ahead of the crowd by serving up these ace tennis hotels.

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Stoke Park, Buckinghamshire With a reputation as one of Europe’s premier country club hotels, Stoke Park is a sporting weekend paradise, ideal for brushing up tennis skills before summer kicks in.

Situated in 350 acres of glorious Buckinghamshire lakes and parkland, the hotel stands imperiously in its splendid surroundings, overlooking its outstanding Championship Golf Course, and containing multiple first class restaurants.

However, it’s the unrivaled sporting facilities that make this hotel truly stand out, and its tennis facilities are fit for a Wimbledon champ, with three indoor courts, four all-weather, and six grass courts ready around the clock. Excellent tuition is available, and exhausted players can always recover

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in the stunning on-site spa. l www.stokepark.com

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Culloden House, Inverness More than two centuries ago, Bonnie Prince Charlie used Culloden House as his battle headquarters, and it’s here that brave hearted players can smarten up their skills ahead of the grass-court season.

Combining majestic Scottish views with the famous Highland hospitality, Culloden House is a perfect pitstop for out-of-touch tennis fans to warm up their serve, to warm up their appetites for the fine dining experience of a lifetime in the hotel’s restaurant.

With easy access to the Castle Stuart links golf course, the hotel is a sportsman’s dream, and the all-

weather tennis facilities are first class, allowing players to practice in spite of the, ahem, unpredictable Scottish weather.

And after slamming home the winning forehand volley? Warm down in the sauna, located deep in the dungeon. Naturally. l www.cullodenhouse.co.uk

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Headland Hotel, Cornwall Hiding in North Cornwall, lies possibly the most jaw-dropping tennis court in Britain, at the sensational Headland Hotel.

Perching atop a classic Cornish beach, and gazing out across the ocean, the hotel can justifiably claim to be amongst the most iconic in the country, and the 360 degree panorama around its tennis court is

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3 utterly and ludicrously incredible.

Tennis fans looking for an unforgettable experience will find it hard to focus on their backhand when wherever their eyes fall they can see pure Cornish beauty in the rocks, sand, water and sky; if ever there was a good example of the adage that it’s not the winning that matters, it’s the taking part, this is it.

A truly sensational hotel experience, and a genuinely smashing tennis treat. l www.headlandhotel.co.uk

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Lake Country House, Mid-Wales If outdoor life is your cup of barley water, aspiring Djokovic’s should head across the Welsh border to top up their tennis.

The Lake Country House and Spa is found in Powys, where the glorious

Welsh countryside offers everything you could need for your sporting weekend.

The hotel has award winning golf, walks and fly fishing on site, but it’s the tennis in the foothills of the Brecon Beacons that truly takes the breath away, with its imposing backdrop the perfect place for an outdoor knock about.

The excellent restaurant serving modern Celtic food will help energise set-mad tourists, and the relaxing onsite spa will work out any tennis elbow at the end of every day. l www.lakecountryhouse.co.uk

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Foxhills, Surrey SW19 gets busy at this time of year, but locals needn’t be crowded out of the courts when a quaint

solution is on their doorstep.

Foxhills sits just outside the M25 in leafy Surrey, and is a perfect bolt-hole from the hustle of City-life.

With the size of an international hotel, and the sensibilities of a familyrun establishment, Foxhills is a heartwarming return of good old fashioned values, but not without keeping up with the sporting times, and has been voted the number one outdoor tennis resort in the UK. Eleven courts, nine with floodlights, provide the setting, but it’s the exceptional coaching available to all guests that make this a must-go destination for wannabe winners. The hotel can even arrange an in-room massage to iron out the bumps and bruises for the following day. l www.foxhills.co.uk

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lifestyle

karma queen

DJ spins AND needles It appears that Australian model, DJ and I’m a Celebrity alumni, Emily Scott’s experiences in the jungles of showbiz, nightclubs and, well, jungle, have given her a taste for the unexpected, and a penchant for the peculiar. She may live to regret this, as we’ve recruited her to be our Karma Queen - reviewing the very best alternative experiences out there to purify the mind, body and soul. In her first assignment for MoneyMaker Magazine, we sent the daring Ms Scott out to experience the ancient art of acupuncture at London’s leading clinic, where the only thing sharper than her wit were the needles pinned into her.

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ike many, I am fascinated by alternative therapy. In particular, the ones that have been around for thousands of years; in my experience, if you keep an open mind, it’s amazing what works.

That’s why this column is so exciting for me, as I want to explore how these traditions can be used today to work for people with globe-trotting, successful lives. Plus, I’m a girl, and I love a drama.

Daily stresses, lifestyle choices and injury upset our natural balance, and lead to physical and emotional disruptions. I mean, can you remember the last time you felt truly balanced in your whole body? I certainly couldn’t, so was very much looking forward to my first ever experience of acupuncture.

The ancient Chinese art of Acupuncture is aimed at the root cause of a condition, as well as the immediate symptoms. For a patient this means less medication, more energy and an enhanced ability to destress. An almost unheard of state of mind for most people buzzing around

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the City.

London’s leading acupuncturist, Kate Winstanley uses the technique to successfully treat issues that are often stress-related, such as IBS, headaches, lower back pain, sports injury, insomnia, fertility and addiction, and has had a truly amazing track record of solving these problems in her patients.

Kate’s done this through manipulating thin needles into acupuncture points in the skin (if you wince at the thought of this, I felt apprehensive too), which activate

energy points in the mind and body to bring it back to health and alignment.

When I arrive at Kate’s tranquil treatment room in London’s Victoria I feel my body rush from the pace of my day, along with a few nerves about the upcoming date with sharp objects.

Kate immediately makes sure I feel relaxed as she explains the treatment and, as it’s my first time, she takes a full medical history to identify what makes my symptoms worse.

She explans that patients often

“i feel balanced, my mind is clear and i have a greater understanding of what i can do to improve my wellbeing” identify stress as the number one aggravator of their symptoms particularly in successful business and City people.

I identify with this problem - I’m lucky enough to travel a lot and, while I’m conscious of my health, I have an unpredictable timetable and sleep pattern. Like many people, I feel like I need to slow down, but life continues at a thousand miles per hour.

As Kate checks my pulse she notes that my kidneys are over functioning.

I instantly feel guilty and realise if nothing else this column has given me a dose of kidney-paranoia for the first time in my life!

Fortunately, Kate explains that this is common for people with irregular sleep patterns, and begins to map out a number of acupuncture points on my body from head to toe that have been designed to combat this exact issue.

As she works a number of needles into my body, I feel no pain, but instead a warm, tingly sensation, which quickly drifts away. Left to relax I feel my heart rate drop and waves of calm flow through my body. This is what I signed up for when agreeing to

do this column!

And then the treatment is over, and my needles are removed (painlessly, again).

I feel balanced, my mind is clear and I have a greater understanding of what I can do to improve my wellbeing. I also feel a sense of real purpose to take on life, and live in a more healthy way.

Since my acupuncture experience, I feel physically calm, focused and centered. The bliss of the treatment has given way to a sense of real poise and alignment, and it’s left me no longer thinking that locating zenlike calm was like finding a needle in a haystack - it’s finding it in Victoria instead.

If you feel you’d like to improve your overall health, a course of acupuncture could be a step in the right direction. Check out London’s number one acupuncture clinic at www.katewinstanley.com.

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lifestyle

gadgets

The Jet Pack JetLev R200 For fans of cult movie The Rocketeer, the future has arrived, and it comes in the form of a backpack. After a century of science-fiction prophesies, and a mis-guided 007 adventure, the jetpack is finally here, and available for anyone who dreams of taking to the skies.

Inventor Raymond Li has worked on the JetLev R200 for eleven years, and has now cracked it, creating a super gadget that pumps water at over 1,000 gallons per minute for a 200 horsepower engine, propelling the pilot into the air.

There are limitations, like you can only fly above water, and can only reach heights of nine metres, due to the cable attaching the pilot to the support boat, but it’s the most fun you can have at that altitude believe us. l From £70,000 l www.jetlev.com

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So you got a car…

that don’t impress me much Driving: it’s just so dreary in 2012.

Who wants to fill their garage with a boring Oldsmobile when there’s so many more interesting ways to get from A to B. Mark Southern discovered there’s more to motoring than meets the eye.

The Segway Segway X2 Turf Perhaps more famous for its creator and founder’s untimely, and tragically ironic passing, the segway is one of the most desirable and effective transport methods available today.

Using NASA technology to keep the two wheeled device upright, users simply lean forward or backwards to move, and twist the handlebars to steer. And they’re brilliant.

Whilst they’re illegal on British roads at present, they are perfectly fine for private property, and the X2 Turf makes for a great golfing accessory, with its exceptionally gentle footprint capable of crossing even the most delicate of greens without leaving a mark.

The X2 Turf is capable of a very respectable 20km/h, and can go up to 20km on a single charge. l From £9,000 l www.segway.com

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lifestyle

gadgets

The Mini Submarine SeaMagine Ocean Pearl

The Paramotor Parajet Cyclone Macro For those looking to soar to higher heights than the jetpack allows, we suggest the more gentile, but incredible, paramotoring, which utilises a parachute canopy and a giant backpack engine to

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travel huge distances.

Parajet are the most trusted name in paramotoring, and the Cyclone Macro the perfect first paramotor for the adventurous pilot.

The Cyclone’s top of the range tech, and exquisite craftsmanship offers over three hours of flight time, and speeds of up to 70 km/h, allowing the pilot to travel a good distance, subject to air traffic control regulations.

The freedom that the Cyclone allows the pilot is unlike anything else, and is a truly exceptional way to travel in style. l Kits from £7,499 l www.parajet.com

Yachts are all well and good, but the truly stylish sea-farer heads under water, not along it.

So, of course you’re going to need a personal mini submarine.

The Ocean Pearl is the best mini sub on the market, perfect for nipping down under the ocean, and exploring the depths below.

With enough oxygen to

keep you and a passenger safe for six hours, and a maximum depth of one kilometre, the deep blue world is your oyster, with three electric thrusters propelling you through the unexplored sea.

There’s a reason why every adventurous billionaire is getting one, and so should you. l From £600,000 l www.seamagine.com

The Jet Ski Yamaha FZR The FZR breaks records as easily as it breaks waves, with the first nanotechnology engineered hull and decks, and comfortably claiming the National Tour Champion title. However, it’s the hulking beast’s performance on the water that makes it such a special jetski, and one that should be on every aquatic thrill seekers shopping list.

The twoseater Yamaha also comes packed with

a punch from its supercharged 1812cc engine, which rips through the water with gusto.

Very simply, it’s a contender for the best jet ski in the world right now. l From £8,000 l www.yamahawave runners.com

lifestyle

accessories

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Summer bags With a ray of sunshine expected sooner rather than later, the must have accessory for him and her this month is a summer bag. We cast our eye over the best.

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1. Yves Saint Laurent ‘Y’ leather travel bag. £1,475 2. Marc by Marc Jacobs Werdie boy camera bag. £325 3. Bottega Veneta Intrecciato bag. £1,190 4. Gucci Deer-skin messenger bag. £895 5. Loewe Diplomatic briefcase. £1,295 6. Calabrese, Partnepoe seersucker red bag. £290

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7. Alexander McQueen Anemone knuckleduster clutch bag. £1,395 8. Sophie Hulme Buckle-handle tote bag. £555 9. Chanel Vintage Piped-edge quilted bag £3,250 10. Lanvin Cigarette case box clutch. £1,370 11. L Wren Scott Lulu python bag. £3,198 12. Chloe Paraty grained leather bag. £1,145 13. Christian Louboutin Artemis watersnake skin bag. £1,225

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lifestyle

watches

The Ultimate Watch Guide Time. It towers over us all, incessantly sprinkling one grain of sand at a time, whilst we try to live our lives as best we can in its constant shadow.

They say time waits for no man, so rather than morosely ponder life’s big questions, we’ve scoured the globe for the ultimate timepieces to set the world’s stylish elite from the timewasters. The UK’s leading expert on all things wristwatch, Oscar McNeely from The Watch Agency, revealed the top five most sought after watches in the world today, so you can at least get time on your side.

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Rolex Daytona (Paul Newman)

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The Rolex Daytona became the watch to have in the decadent Eighties, and its appeal has only increased three decades later. Since 2000 the demand on the new steel models outstripped supply to such an extent that the waiting list for one was five years long, and has only recently eased off due to the increases in the

Omega Speedmaster ‘Moon Watch’

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list price.

But why is it that the steel Daytona rather than the gold models is in the highest demand? Well, that’s largely down to the iconic figure of Paul Newman.

Folklore states that Paul Newman wore a steel Daytona in the racing film Winning, although the reality is somewhat different in that, whilst he was a big fan of the Daytona (he was never on the Rolex payroll, and wore the watches as he liked them so much), he wore several different models.

During the Sixties and Seventies

the steel Daytona was very much the unloved Rolex, and would sit in the jewellers window for years, which is another reason for its appeal today, as it’s this historic lack of popularity that has made them so rare today.

Collectors are advised to look out for the models with the ‘exotic’ dial, which has a white face with black outer track to match the black subdials, as found on the 6241 and 6239 models.

The wearer won’t be guaranteed to match Paul Newman’s effortless cool when sporting one of these, but it will certainly drive others to distraction.

Despite being priced a little lower than their rivals, Omega watches should not be overlooked, as the brand’s watchmaking skill and cultural significance is as special as its celebrated contemporaries.

Various recent James Bond marketing campaigns have seen Seamasters, Professionals and Planet Oceans seeing a surge in popularity, but none can compete with the illustrious history of the Omega Speedmaster. Why? Because the first (and second) man on the moon endorse it, and that’s good enough for us.

The Speedmaster has been standard issue by NASA to its astronauts for years, and Neil Armstrong and Buzz Aldrin were both issued with theirs before Apollo 11, leading the iconic timepiece to become known as ‘The Moon Watch’.

The Watch itself is a Manual hand wound watch, featuring a chronograph function and a tachymeter to work out the average speed of a journey.

Some later models have automatic mechanisms, although it’s the original manual versions that are the most sought after.

Some NASA experts have claimed that Armstrong wasn’t wearing his on that fateful landing, leading Aldrin to be the true keeper of the original Moon Watch, and to make matters even more mysterious this watch was stolen whilst in transit to a space museum, lending even more kudos to the legend of the watch.

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lifestyle

watches Patek Philippe 5002P

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No most sought-after watch list should be complete without mention of Patek Philippe, the company formed by two master watchmakers Antoni Patek and Adrien Philippe, whose pioneering inventions created many of the innovations we take for granted today.

It was Patek Philippe who invested the first keyless winding mechanism, which revolutionised the wristwatches of the time, and they also take great credit for the minute repeater, the ratrapante split second hand, the chronograph and perpetual calendar.

But which Patek Philippe model should make the list?

The 5002 is considered their most glorious creation, although to be more specific the 5002P denoting the platinum version, is our choice here. However, the metal is just a question of taste, and it’s the mechanics and functions of the model that have earned its inclusion here.

Among the functions of the 5002 are a Toubillon, minute repeater, retrodrade date, moon phases and Sidereal Time.

It was also the first double sided Wristwatch produced by Patek Philippe and one side has the Sky Chart, showing the sky above Geneva.

Altogether this timepiece is a masterpiece of engineering, inspired thinking and a thing of unquestionable beauty.

Rolex Submariner (COMEX)

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Just like its famous Paul Newman wearing cousin, the Rolex Submariner is another that crosses cultural borders with panache, with most serious watch buyers having one on their wish-list.

Like many Rolex models, the style of the Submariner has changed very little in its sixty year history, instead simply being tweaked to keep it modern.

Like its stable-mate, the Submariner also has an illustrious silver-screen fame, and was the watch of choice for Ian Fleming’s James Bond, and also the first films, with Sean Connery and then Roger Moore brandishing a Submariner until Omega paid a fortune for 007 to switch to its Seamaster.

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It was Moore that first wore the 5513 on screen, and this has become a very popular and collectable model, within the reach of many collectors due to its relatively high production.

However, the most stylish collectors prize uniqueness over celebrity spotting, and it’s the 5514 model, which was produced bespokely for the French diving company Compagnie Maritime d’Expertises (COMEX), which has the most cache. Look out for the obvious COMEX logo on the dial, and ensure yours has the original dials rather than the service dials, which replaced the originals in many cases.

A stunning, timeless watch, which will leave others shaken and stirred when spotted on an arm.

Breguet Tourbillon

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To not include a Tourbillon in a list of most sought after watches would cause a rift in the time/ space continuum, and MoneyMaker Magazine is far too big a fan of the universe in its current form to do that.

To explain, a Tourbillon is a clever internal device, which reduces the effect of gravity on the timekeeping of a watch by housing the clockwork

in a small rotating cage, keeping your watch on time.

The first Tourbillon was made by Abraham Louis Breguet after he spent time in London with John Arnold exchanging ideas. Later Arnold took a pocket watch, the chronometer No. 11 to Breguet in Paris, where Breguet added the Tourbillon inscribing, creating the most famous Tourbillon in the world.

The watch is now housed in the British Museum, and just a pipe dream for a collector. However, there

are some fine collectable models featuring a Tourbillon, in both pocket and wrist watches.

Breguet’s Flying B Tourbillon is one of the finest examples ever made, and is guaranteed to hold its status as very sought-after, instantly collectable pieces, due to the exclusivity of production. You’ll need to be prepared to part with hundreds of thousands, though, even for a relatively modest one, and millions if you are looking for a true once-in-alifetime piece.

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sp o r t

england

football’s

coming

home (MAYBE?)

Summer 2012 looks set to be one dominated by sport, and first up is Euro 2012. So with Captain Hodgson leading England’s assault on a tournament that has so far eluded them, will this be the year that the Three Lions finally bring football home? We like to pretend so.

996. Cool Britannia was at its most glorious. Michael Johnson was the fastest man in the world. And it was a golden summer of English football, the defining moment for a generation of Three Lions disciples.

But as hard it is to come to terms with, it’s been the best part of two decades since Terry Venables and the boys in white, or more fatefully

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grey, gave England fans anything to shout about at a major football tournament.

That’s because for all the talk of world class players, all the money spent on importing foreign managers, a handful of decent performances in qualification, and a lot of whispers of “if things go our way, this could be our year” every other summer, the last sixteen years of international football have been all but a total write off for the home nations, and

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sp o r t

england

History especially England.

Despite having a genuine world beater who turned up to play with his boots on and not a cigar in his mouth (something their successors struggled with), Venables’ replacements Glen Hoddle and Kevin Keegan couldn’t muster two decent performances in a row from a talented squad led by talisman Alan Shearer.

And then there were Sven’s men, who promised so much, but delivered so little.

We were told that a new generation of Ferdinand, Terry, Lampard and Gerrard, together with old faces Owen and Beckham, would gel magnificently to produce a team worthy of challenging for honours on the highest stages.

The accolades and trophies were expected by the armful. Three times expectant supporters put the champagne on ice as Eriksson took his band of merry men to Euro 2004, sandwiched between World Cup appearances in Japan and Germany.

But we did get the glory our superstar team of all conquering heros promised?

Of course not. Flashes of inspiration were few and far between as first Brazil, and then Portugal, dumped Sven and the boys out of three successive tournaments at the quarter final stage. After five years the FA and Eriksson parted, with the Swede’s predominant England legacy being the establishment of consistent mediocrity.

So that was the low point, right? Not by a long chalk. Next up to the oche to mastermind England’s last assault on the European Championships was Steve McClaren, and we know how well that regime turned out. Technically bereft and tactically overmatched, the “Wally with the Brolly” watched on with the rest of the country as a 3-2 defeat at home to Croatia signified the final nail in the coffin of a lacklustre qualification campaign that cost us a spot at Euro 2008, as well as McClaren his job.

Which only leaves the term of Fabio “speaking English isn’t a prerequisite of taking on the most important job in English football” Capello to be thrust under the spotlight. And for a man of such managerial pedigree, and who demanded such a lucrative contract for the pleasure of retaining his services, Capello’s record reads for no better reading.

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england’s Key Men » Joe Hart – Joe Hart could only sit and watch on in anguish in South Africa as first Rob Green, and then David James were given the job of protecting England’s goal at the last World Cup. A lack of experience at the international level kept him from being first choice then, but after two seasons as the established no.1 at Manchester City there’s no doubt who the premier shot stopper will be this time round.

Hart is one of the team’s few world class players, and will have to perform well if England are to have any chance of even making out of the group stages, let alone further. Fans remember too well how the errors of Scott Carson and Rob Green have cost England dearly in previous campaigns. » Scott Parker – Continually overlooked by successive England managers since making his international debut in 2003, Scott Parker had only managed to rack up three appearances for England being omitted from England’s World Cup squad in 2010. The majority of fans thought that leaving the Football Writers’ Association Footballer of the Year at home was a mistake, and so it turned out to be as the team lacked any strength or character through the middle of the park.

Unsurprisingly Parker has been a regular ever since, establishing himself as the team’s midfield anchor and providing a gritty attitude of professionalism to the England dressing room. Another impressive domestic season and some inspiring performances wearing the Three Lions badge have seen Parker elevated from the forgotten man to an international regular, and even to captaining the side for England’s last friendly against The Netherlands.

Too often recent England sides have been accused of lacking the motivation, determination and spirit that their ardent fans demand. Parker can be the man to turn the dressing room attitude around, surely a must if we’re able to contend with the big boys major tournaments.

» Ashley Young – A lack of goals was the major problem in South Africa, and with Wayne Rooney suspended for the first two games of the group stages someone else is going to have to stick their hand up and lead the front line.

Danny Welbeck and Daniel Sturridge have impressed in the Premiership this season, and should be rewarded with the opportunity to flaunt their talents at a higher level. Throw Ashley Young into the mix as the senior member of an exciting front three, and England fans should certainly have a lot more to shout about this time around.

Young was England’s top scorer in 2011 and already has another in 2012, bagging five goals in his last eight performances.

With Sturridge, Welbeck, and eventually Wayne Rooney for company, Young’s attacking threat could be the sparkplug England need to break down Europe’s tougher defences.

True, under Fabio qualification became a much less arduous and tension-filled affair, but surely England’s performance two years ago at World Cup 2010 was the most disappointing showing at a tournament for decades. Three goals, one win, and a humiliating finale courtesy of a 4-1 defeat at the hands of Germany were greeted with waves of discontent from the fans back home, as once again pretournament expectations were crushed, and replaced with another round of “what made us think we had any chance?” cries.

There have been highs since 96 of course, but my oh my do they read for slim pickings. A 1-0 win against Germany, a first victory over our arch rivals since the World Cup Final in 1966, at Euro 2000, a 5-1 win over the same opposition the following year, a heroic free kick from David Beckham to secure qualification to the World Cup Finals in 2001, and another Beckham goal to beat Argentina in the same competition all sparked hope that England were on the precipice of clambering out of the doldrums and into the realm of the footballing elite.

Unfortunately the dream never became a reality. And when you take a step back its clear that moments of glory have been few and far between.

So is 2012 our year?

Well, if we need everything to go right to have a chance of success then the omens would say no, it isn’t. Race rows and a captaincy stripping led to Capello calling time on his England tenure just months before the tournament begins, and it is still unclear as to whether the preceding events have left us with a unified squad or one that’s riddled with divisions.

The man whose job it is to knit any fractures back together is Roy Hodgson, plucked from mid-table mainstays West Bromwich Albion to turn around a team that have spent too long being all too midtable themselves. There’s no doubt Hodgson has a wealth of experience holding the reins of both domestic and international teams, but with the preferred choice of players and fans alike seemingly being Harry Redknapp, the question of whether he is the right man to take charge of a dressing room of

our england xi Hart Walker

ferdinand

gerrard

cleverley

welbeck

jones

parker

cole

young

sturridge

The MoneyMaker England Squad: Joe Hart, Rob Green, David Stockdale, Kyle Walker, Micah Richards, Joleon Lescott, Rio Ferdinand, Phil Jones, Gary Cahill, Ashley Cole, Leighton Baines, Scott Parker, Gareth Barry, Steven Gerrard, Tom Cleverley, Frank Lampard, Theo Walcott, Alex Oxlaide-Chamberlain, Ashley Young, Daniel Sturridge, Wayne Rooney, Danny Welbeck, Darren Bent

superstars still hangs above his head.

And Capello’s departure has left Hodgson with the dilemma that’s plagued England dating back to Eriksson, namely whether to plough on with established internationals or blood the young pretenders of the upcoming generation, armed more with potential than dependability.

History might suggest that it is the more experienced teams that do well at major tournaments. But history also confirms that England’s particular pack of veterans have had plenty of chances to impress, and have so far failed to get even close to making significant strides towards world stage glory.

Rather than looking backwards to Fabio and Sven for guidance, perhaps a better source of inspiration would be to take a peek sideways at the work Stuart Lancaster is doing with the England rugby union squad. Lancaster’s policy of “let’s blow it up and start again” after a dismal effort at a major tournament would be a refreshing approach for the national football team to say the least, after all there’s hasn’t been a major shakeup in team personnel since 2002 (seven of England’s projected best XI have over 50 international caps, four have over 80).

Whether Hodgson plays the kids in

“Phil JOnes, Alex OxlaideChambelain and Daniel Sturridge look like world class players in waiting” Poland and the Ukraine or not is yet to be seen. All that’s certain is that England fans to a man will be telling everyone and anyone who’s listening that there’s no chance of the boys bringing home any silverware from Euro 2012, whilst secretly thinking that this might be our year. After all, what would an English summer be without low expectations and high profile disappointments?

Roll on the Olympics.

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Punters Post MoneyMaker and Sporting Bet team up to bring you this month’s hot tickets

Euro 2012’s Top Tips Outright winner: Germany 3/1, France each way 11/1 Name the finalists: Germany v France 28/1 Group Forecasts Group A: Russia – Poland 6/1 Group B: Germany – Netherlands 5/2 Group C: Italy - Croatia 18/1 Group D: France - Sweden 10/1

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t’s been eight long years since England fans had a side to cheer on at the European Championships.

Memories of Wayne Rooney skipping through European defences before the inevitable injury and penalty shoot out defeat are still fresh. But with Roy Hodgson now holding the keys to England’s dressing room, those memories will soon be displaced with glorious performances and sensational...

Ok, maybe not. England may well be a more tempting price than usual at 10/1 to win Euro 2012 – a result that would prove disastrous for bookmakers given the weight of money that follows the Three Lions - but put simply they have little realistic chance of winning and offer no great value at that price. Roy Hodgson may well be an excellent manger and tactician, but he used up his last miracle during Fulham’s great escape of 2009.

Group D will be a fascinating group to watch however, and one where you could find a decent investment for your money.

Behind England in the pecking order come France at 11/1 and with the likes of Yohanne Cabaye and Hatem Ben Arfa combining forces with Samir Nasri, Karim Benzema, Loic Remy and Frank Ribery, that lofty price stems more from the perceived French poor attitude and expected camp discourse than the evident squad talent.

With Italy (12/1) likely to be lying in wait should France progress as group winners, the French fire power alone should be enough to see them through to the semi finals where they’ll face Portugal (18/1) or the Netherlands (13/2). The Dutch of course won nine of their 10 qualifiers for the tournament – losing only to Sweden (66/1) – but much like France their hopes will rest on whether they can play consistently well through a tournament (something which their history suggests is unlikely).

From there it’ll be Spain (5/2) or Germany (3/1) in the final – and there’s a quiet confidence in the betting industry that Spain will falter. With Barcelona and Real Madrid having been outwitted in the Champions League and Spain’s inability to put games to bed (their three knockout games at the last World Cup ended 1-0 before a 0-0 draw in the final) there’s a real chance the holders will stumble this summer – especially with David Villa out

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Other Bets we’ve been making this month Guardiola’s Next Managerial Job With Pep Guardiola set to take a year’s sabbatical, surely the 5/1 on him taking over the Manchester United hotseat makes more sense than the 2/1 that he’ll take over at Chelsea?

England Captain v France The failures of England’s golden generation means any move to install one of them as England captain will be savaged by the fans. So with Joe Hart a guaranteed starter the 8/1 on him taking the armband for the first game against France looks far better value than the 11/10 on Steven Gerrard.

Horse racing High Class flat racing always dominates the calendar in June with Royal Ascot amongst the finest meetings anywhere on the globe.

Prime punting opportunities come thick and fast over five days at the Berkshire venue with a mouth watering combination of Group races and competitive handicaps on the menu.

There will be an extra special flavour to this year’s Royal meeting with the two best horses in the world likely to race.

Frankel and Black Caviar have captured

the imagination of equine fans everywhere with a string of scintillating performances and the chance remains that the two could yet still clash.

Sportingbet make Frankel 4/6 to beat the great Australian mare but a more likely path for Black Caviar is the Diamond Jubilee Stakes in which she is an 8/11 chance to extend her breathtaking winning run. Frankel will undoubtedly start at short odds for whichever engagement he takes, although an early season injury scare may see punters wager with a little more respect.

In one of the meetings highlights Fame And Glory will look to retain his Gold Cup crown, but odds of 3/1 indicate that the favourite is hardly a “good thing”. A better value option maybe the Michael Owenowned Brown Panther who is currently a 14/1 shot. The Manchester United striker bred this horse at his Cheshire based training centre and after a season of massive improvement, even bigger things are expected this campaign from his stable star. http://www.sportingbet.com/sportshorse-racing/0-171-171-2-2.html

How to get your £50 Risk Free Bet l Open a Sportingbet account and if your first bet loses, we’ll refund your money as a free bet! l Visit www.sportingbet.com online or on mobile and enter Promo code MONEYMAKER when creating your account. l All new MONEYMAKER account holders will go into a draw to win exclusive hospitality passes with Sportingbet to Royal Ascot.

of action.

So from there it could be a straight shootout between France and Germany.

Those who have tuned into this season’s Bundesliga will know that despite reaching the Champions League final, Bayern Munich have been disappointingly domestically; a fact that may well play

into their hands with a large contingent of German players being spared the gruelling challenge of a title fight.

Still, it’s been 16 years since Germany won a major tournament despite reaching a World and European Cup final in that time – and the French may just pip them to it in Poland and Ukraine.

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sp o r t

strategy

a better way

to bet

The number of online betting sites is vast and growing. From traditional high street bookies to web specialists and betting exchanges, the options open to punters looking to profit from sports betting are numerous to the extreme.

hich, of course, should be a good thing, because an increase in providers should mean an increase in competition, and an increase in competition will lower prices for the consumer. The only problem is that that is all well and good as a theory, but all too often it doesn’t translate into the expected results.

There are a number of reasons for this.

Firstly, the sheer number of companies offering you odds saturate the marketplace, making it impossible to actually determine who is offering you the best price. Betting comparison websites and services such as oddschecker.com will give you a rough overall snapshot of what the biggest sites on the web are offering you, but by no means is this a comprehensive list of sites offering odds. In addition, there’s no guarantee that the odds you’re seeing a up to the minute, meaning that would looks like the best price could in fact have changed dramatically since the time has elapsed.

The second issue of using price comparison sites is that even if you are aware of the best odds, you need to have

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multiple accounts across a large number of platforms to be able to profit from the information. Not only is this a hassle to organise and keep track of, but it also dilutes you financial power as you can only ever wager what you have in a single account at any one time.

Similar issues arise in financial markets, but are solved by the employment of a broker to source the best prices on your behalf. However, because sports betting is too often seen as being less a professional enterprise than financial markets speculation, sports betting brokers have been viewed as an unnecessary addition to the industry.

However for those who are really in the know, and for those who understand that a professional approach to sports betting is the most likely way to guarantee a positive account, the utilisation of a sports betting broker is paramount in securing the best odds, and locking up the biggest profits.

And when it comes to sports brokers, there’s no better around than Bet Butler.

Licenced by the UK Gambling Commission, Bet Butler is the one stop show to solve all of your online sports

betting conundrums.

Much like a financial broker, Bet Butler brings knowledge, convenience, and above all professionalism to the sports betting world. So if you are serious about wanting to make it big in the world of sports betting, then Bet Butler is the place to start.

All betting across numerous sites to ensure the best odds can be handled with one simple Bet Butler account, backed up by leading edge technology and a direct over the phone advice service. And with brokerage charges typically being as low as 3% of your stake of accepted bets, costs are well below the financial benefits entrusting your wagers to professional brokers should return.

And with Bet Butler also offering an exclusive VIP Gold membership to its High Roller clients, high net worth gamblers will experience an even bigger reward from signing up to the excellent service today.

For more information on Bet Butler’s brokerage service visit www.betbutler.co.uk

“Much like a financial broker, Bet Butler brings knowledge, convenience, and above all professionalism to the sports betting world�

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sp o r t

POKER

Dwan takes down biggest recorded pot in Macau cash game US Pro takes down $3.8m in a single hand f there’s one industry that doesn’t appear to have been hit by the global financial downturn it’s the world of poker, with the money changing hands in tournaments and cash games continuing to rise to astronomic levels.

And last month saw the action move to a whole new plane entirely after the biggest recorded hand of poker was reported in Asian gambling capital Macau.

Poker in the Chinese city, dubbed the Vegas of the East, has exploded post Black Friday (the date that online poker was banned in the US), with pros from across the globe making the trip to take on wealthy Asian businessmen at some of the highest stakes the gambling world has ever seen.

Almost inevitably the fateful hand involved online high stakes phenom and poker celebrity Tom Dwan, who has all but encamped himself in Macau since the US Government shut down online in the USA. Even he, however, couldn’t have imagine the stakes getting as high as HKD $30m (USD $3.8m) a hand.

Little has been reported of the games in Macau, in the most part due to the privacy that wealthy Chinese players in the game insist on, but we did hear a little of just how almost $4m end up being wagered on the turn of a card.

All the money went in on a flop of A-T-2, with Dwan holding A-T and a well-known Chinese

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businessman holding A-2. The amateur couldn’t find a way to improve, so the money was shipped to Dwan side of the table.

Famous TV faces including Phil Ivey, Patrik Antonius and Gus Hansen have been joined by high stakes pros including the UK’s Sam Trickett in already taking on the challenge of competing in the biggest games the poker universe has to offer. And, with news of Dwan’s win expected to spread like wildfire through the industry, we won’t be surprised if more stories emerge of players taking their all or nothing shot at poker glory.

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Your hotel or private villa will be selected to your exacting standards and of course we only partner with the very best coaching academies and courses on the Algarve. We appreciate that your leisure time is valuable and will see to every detail of your stay – allowing you to spend your days improving your handicap in the company of our Golfing Professionals and your evenings at the finest restaurants the region can offer.

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