In the world of trading, few names resonate as strongly as Nick Fabrio. Known for his strategic acumen and insightful market analyses, Fabrio has carved out a niche for himself in the competitive landscape of trading. This blog post delves into the depths of his trading philosophy, strategies, and his unique approach to DMA CFDs and Short Selling ASX Shares.
From his background and expertise to his advice for aspiring traders, we’ll explore the facets that make Fabrio a respected figure in the trading community. We’ll also introduce you to Spark Trader and its connection to Fabrio’s strategies, and discuss the concepts of borrowing in trading and the difference between DMA and OTC CFDs.
Moreover, we’ll shed light on the advantages of OTC CFDs, particularly in short selling, and introduce TD365’s impressive list of stock CFDs you can short sell. Whether you’re a seasoned trader or just starting out, this blog post promises to provide valuable insights into the world of trading. So, let’s embark on this journey to learn from one of the best in the business!
Nick Fabrio’s Background and Expertise
Who is Nick Fabrio and what is his professional background in trading?
Nick Fabrio, a name that has become synonymous with exceptional day trading, didn’t start his career in the financial markets. His journey began in the bustling environment of The Star casino, dealing chips and learning the nuances of risk and reward. This experience laid the foundation for his future in trading.
Transitioning from the casino to the stock market, Fabrio began his trading career with a modest investment. His focus was on ASX listed stocks, specifically with a bias for short selling. His strategic acumen and understanding of market catalysts quickly paid off. By the age of 28, he had generated over one million dollars in trading profits within his first three years.
Despite his success, Fabrio remains a self-directed ‘retail’ trader. He is known for his active presence on Twitter under the handle @longhorncapital, where he shares his insights and experiences.
Nick Fabrio’s background and expertise are a testament to his dedication, strategic thinking, and understanding of the financial markets. His journey from the casino floor to becoming a million-dollar trader offers valuable insights into the world of trading. Stay tuned as we delve deeper into his trading philosophy and strategies in the following sections.

What makes Nick Fabrio an expert in trading and investing?
Nick Fabrio’s expertise in trading and investing is a product of his unique journey and strategic approach to the markets. Starting his career in the vibrant environment of The Star casino, he honed his understanding of risk and reward, which later became the cornerstone of his trading philosophy.
Transitioning to the stock market, Fabrio began with a modest investment and a focus on ASX listed stocks, particularly with a bias for short selling. His strategic acumen, combined with his understanding of market catalysts, led him to generate over a million dollars in trading profits within his first three years. This achievement is a testament to his expertise and skill in trading and investing.
Fabrio’s approach to trading is both strategic and analytical. He uses a platform that allows him to view live depth visually and shows aged volume in the depth very clearly. This enables him to find walls of depth in the volume and rest up against these to obtain very low-risk entries, creating great expectancy for every trade he places.
Despite his success, Fabrio remains a self-directed ‘retail’ trader. He shares his insights and experiences on Twitter under the handle @longhorncapital, further establishing his reputation as an expert in the field.
Nick Fabrio’s expertise in trading and investing stems from his unique journey, strategic approach to the markets, and his ability to leverage technology to make informed trading decisions. His success story serves as an inspiration for many aspiring traders. Stay tuned as we delve deeper into his trading philosophy and strategies in the following sections.

Nick Fabrio’s Trading Philosophy
What is Nick Fabrio’s approach to trading and investing?
Nick Fabrio’s approach to trading and investing is a fascinating blend of strategy, analysis, and intuition, honed over years of experience. His journey from dealing chips at The Star casino to becoming a successful trader has been marked by a deep understanding of risk and reward, a principle that forms the cornerstone of his trading philosophy.
Fabrio’s focus on ASX listed stocks, particularly with a bias for short selling, is a testament to his strategic acumen. This strategy, while seemingly simple, requires a deep understanding of market dynamics and the ability to predict trends. Fabrio’s success in turning a modest initial investment into over a million dollars in trading profits within just three years is a testament to his mastery of this strategy.
A key element of Fabrio’s trading approach is his use of tape reading and order flow analysis. Tape reading involves analyzing the size, type, and rate of orders to predict future price movements. Fabrio uses a sophisticated trading platform, Spark Trader, which allows him to view live depth visually and shows aged volume in the depth very clearly. This feature is crucial for Fabrio’s strategy as it enables him to identify walls of depth in the volume. He uses these walls to rest up against and obtain very low-risk entries, thereby creating great expectancy for every trade he places.
In addition to his own research and analysis, Fabrio also collaborates with Bryce Edwards, another expert in the field. This collaboration allows him to gain different perspectives and enhance his trading strategies.
Despite his success, Fabrio remains a self-directed ‘retail’ trader. This means he makes his own trading decisions, rather than relying on a broker or financial advisor. He is known for his active presence on Twitter under the handle @longhorncapital, where he shares his insights and experiences. This not only helps him connect with other traders and investors but also allows him to share his knowledge and expertise with a wider audience.
Nick Fabrio’s approach to trading and investing is characterized by a deep understanding of risk and reward, a strategic focus on ASX listed stocks and short selling, the use of sophisticated trading platforms, and an active engagement with the trading community. His success story serves as an inspiration for many aspiring traders.

Nick Fabrio’s Trading Strategies
What trading strategies does Nick Fabrio use to achieve success?
Nick Fabrio, a renowned day trader, has carved a niche for himself in the trading world with his unique strategies and deep understanding of the market dynamics. His approach to trading is a blend of meticulous analysis, strategic thinking, and a keen understanding of risk and reward.
One of the key strategies that Fabrio employs is short selling, particularly with ASX listed stocks. Short selling involves selling a security that the seller does not own, with the intention of buying it back later at a lower price. This strategy requires a deep understanding of market trends and the ability to predict future price movements.
Another significant aspect of Fabrio’s trading strategy is his use of tape reading and order flow analysis. Tape reading involves analyzing the size, type, and rate of orders to predict future price movements. Order flow analysis, on the other hand, involves studying the influx of buy and sell orders to predict price changes. Fabrio leverages a sophisticated trading platform, Spark Trader, which allows him to view live depth visually and shows aged volume in the depth very clearly. This feature enables him to identify walls of depth in the volume, which he uses to obtain very low-risk entries.
In addition to these strategies, Fabrio also places a strong emphasis on research and collaboration. He works closely with Bryce Edwards, another expert in the field, which allows him to gain different perspectives and enhance his trading strategies.
Despite his success, Fabrio remains a self-directed ‘retail’ trader. This means he makes his own trading decisions, rather than relying on a broker or financial advisor. He is known for his active presence on Twitter under the handle @longhorncapital, where he shares his insights and experiences. This not only helps him connect with other traders and investors but also allows him to share his knowledge and expertise with a wider audience.
Nick Fabrio’s trading strategies are a unique blend of short selling, tape reading, order flow analysis, and collaboration. His approach to trading, characterized by meticulous analysis, strategic thinking, and a keen understanding of risk and reward, has led him to achieve remarkable success in the trading world. Stay tuned as we delve deeper into his trading philosophy and strategies in the following sections.

What is Spark?
Spark, as offered by sparktrader.com, is a revolutionary desktop application designed specifically for finance industry professionals. It provides streaming real-time market information for ASX and NZX.
One of the standout features of Spark is its unique market depth tool. This tool visualizes a stock’s order book, allowing traders to quickly make sense of the market. The order book is plotted as a series of stacked bars that grow and contract as new orders enter the market and trades are executed. This depth chart animation draws attention to the underlying movements and provides deeper insights into the order flow of a stock.
Spark’s depth tools can help traders identify key price levels, short term support and resistance, order age, hidden liquidity, auction imbalances, momentum changes, and possible market manipulation. Additionally, replay functions give traders access to the last 90 days’ trading activity. Traders can closely analyze a stock order book by stepping through one event at a time or replay the events at varying speeds.
Beyond its unique market depth tool, Spark also offers real-time company announcements, powerful scanning tools for traders known as Smartlists, and a highly functional and customizable user interface. Its flexible screen layouts and customization options allow traders to personalize their workspace and actively monitor hundreds of stocks at the same time.
Spark is a sophisticated trading platform that offers a range of features designed to provide traders with real-time market information and in-depth analysis tools. It is a valuable resource for traders who rely on detailed market analysis and strategic decision-making.

How does Spark relate to Nick Fabrio’s trading strategies?
Spark, the trading platform offered by sparktrader.com, plays a pivotal role in Nick Fabrio’s trading strategies. Known for his expertise in short selling ASX listed stocks, Fabrio leverages the advanced features of Spark to gain a competitive edge in the market.
One of the standout features of Spark that Fabrio utilizes is its unique market depth tool. This tool visualizes a stock’s order book, allowing traders to quickly make sense of the market. The order book is plotted as a series of stacked bars that grow and contract as new orders enter the market and trades are executed. This depth chart animation draws attention to the underlying movements and provides deeper insights into the order flow of a stock.
Fabrio uses this feature to identify walls of depth in the volume, which he uses to obtain very low-risk entries. This approach to trading, which involves leveraging technology to make informed trading decisions, is a key aspect of Fabrio’s strategy.
In addition to the market depth tool, Spark also offers real-time company announcements and powerful scanning tools known as Smartlists. Fabrio uses these features to stay updated on market news and identify potential trading opportunities.
Moreover, Spark’s replay functions give traders access to the last 90 days’ trading activity. Fabrio uses this feature to closely analyze a stock order book by stepping through one event at a time or replaying the events at varying speeds. This allows him to review his trades and learn from his past trading decisions.
Spark is an integral part of Nick Fabrio’s trading strategies. Its advanced features and tools provide him with the real-time market information and in-depth analysis capabilities he needs to make informed trading decisions. The synergy of Spark’s technology and Fabrio’s strategic acumen has proven to be a winning combination in the trading world.

What advice does Nick Fabrio have for aspiring traders?
Nick Fabrio, a successful day trader, has a wealth of advice for those looking to navigate the world of trading. His insights, drawn from years of experience and a deep understanding of market dynamics, serve as valuable guidance for aspiring traders.
One of the key pieces of advice Fabrio offers is the importance of maintaining a trading journal or diary. He meticulously records his trades, reflecting on both his successes and failures. This practice allows him to learn from his experiences, refine his strategies, and continuously improve his trading skills. He even shares some of these notes on Twitter, providing a glimpse into his thought process and trading strategies.
Understanding risk and reward is another cornerstone of Fabrio’s trading philosophy. He advises traders to always consider the potential downside of a trade before looking at the possible profits. This mindset, honed during his time at The Star casino, has been instrumental in his success as a trader.
Fabrio also emphasizes the importance of thorough research and analysis. He believes that successful trading is not just about making quick decisions, but about understanding the market trends and the factors that drive price movements. He encourages aspiring traders to leverage tools like Spark Trader, which provides real-time market information and in-depth analysis capabilities.
Finally, Fabrio stresses the importance of continuous learning and adaptation. The markets are constantly changing, and traders need to be able to adapt their strategies to keep up. He encourages aspiring traders to review their trades, learn from their mistakes, and constantly seek ways to improve.
Nick Fabrio’s advice for aspiring traders revolves around maintaining a trading journal, understanding risk and reward, conducting thorough research and analysis, and continuously learning and adapting. His insights, drawn from his own journey and experiences, provide a valuable roadmap for those looking to succeed in the trading world.

Short Selling ASX Shares
Can you short ASX stocks?
Short selling is an investment strategy where an investor borrows a security, such as shares of a stock, and sells it on the open market with the intention to buy it back later for less money. The goal of short selling is to profit from a drop in the security’s price. This strategy is often used by traders who speculate that the security’s price will decline.
Now, let’s understand how this relates to ASX (Australian Securities Exchange) shares. Yes, you can short ASX stocks. When you short sell ASX stocks, you’re speculating that the stock price will decline. You borrow shares from a broker and sell them at the current market price. After the stock price declines in your favor, you repurchase them at a lower price and return the stocks to the lender.
However, it’s important to note that short selling carries a higher degree of risk as losses can be unlimited. The price of any asset can climb to infinity, and the risk of loss on a short sale is theoretically unlimited since you must buy back the borrowed shares at the current market price. Therefore, this strategy should only be undertaken by experienced traders and investors.

Why are shares not available to short?
Short selling is a trading strategy where an investor borrows shares and sells them on the open market, hoping to buy them back later at a lower price to make a profit. However, there are instances when shares may not be available for short selling.
The availability of shares for short selling is primarily determined by supply and demand. If a large number of investors are trying to short a particular stock, the supply of shares available for borrowing may be exhausted, making it difficult for additional investors to short the stock. This is particularly common with stocks that have a low public float, meaning there are a limited number of shares available for trading.
Another reason shares might not be available for short selling is due to restrictions imposed by brokers or regulatory bodies. Some brokers may not have a sufficient number of a particular stock to lend out for short selling. Additionally, regulatory bodies may impose rules that limit or prohibit short selling under certain conditions to prevent market manipulation or excessive speculation.
However, there’s a workaround for traders who still want to bet against a particular stock when shares are not available for short selling. This is where Over-The-Counter Contracts for Difference (OTC CFDs) come into play. OTC CFDs are a type of derivative that allow traders to speculate on the rise or fall of a security without actually owning the underlying asset. This means that traders can short sell using OTC CFDs even when the actual shares are not available for borrowing. This feature makes OTC CFDs a popular choice among traders who want to short sell stocks that are otherwise hard to borrow.

What is borrow in short selling?
In the realm of trading, ‘borrowing’ is a critical concept, especially in the context of short selling and Direct Market Access Contracts for Difference (DMA CFDs).
Short selling is a trading strategy where an investor speculates on the price decline of a security. The process begins with the investor borrowing shares of the security from a broker. The borrowed shares are then sold on the open market at the current price. The investor’s goal is to buy back the shares at a lower price in the future, return the borrowed shares to the broker, and pocket the difference as profit.
The act of borrowing is thus a fundamental part of short selling. It’s important to note that the investor doesn’t own the shares they are selling; they are selling shares they have borrowed. This is what allows the investor to sell a security they believe will decrease in value and potentially profit from that decrease.
However, when it comes to DMA CFDs, the availability of shares to borrow is a crucial factor. In DMA CFD trading, there must be borrow available for a short sell to occur. This means that the trader must be able to borrow the stock they wish to short sell. If the shares are not available for borrowing, the trader cannot execute a short sell in DMA CFD trading.
Borrowing is a key mechanism in short selling, allowing investors to sell securities they don’t own with the aim of buying them back at a lower price. However, in DMA CFD trading, the availability of shares to borrow is a crucial factor that can determine whether a short sell can be executed. It’s a strategy that requires careful consideration of potential risks and rewards.

Difference between DMA and OTC CFDs in Short Selling
What is the difference between DMA and OTC CFDs?
Direct Market Access (DMA) and Over-The-Counter (OTC) are two different methods of trading Contracts for Difference (CFDs). Here are the key differences:
1. Price Feeds and Trading: With DMA, you get direct access to the underlying exchange. This means you can place your orders directly with the exchange through a broker. You can put your buy or sell orders inside the spread to make the prices even tighter. On the other hand, if you are trading with OTC CFDs, you will have to buy/sell at your broker’s quoted prices. The broker will widen the market spread to incorporate commission.
2. Commissions and Costs: With DMA, your broker will charge you a commission as an extra line on your statements. You also have to manually factor this into your profit and loss when you open and close the trade. In contrast, with OTC trading, all the costs are built into the spread.
3. Tax Implications: Profits from DMA trading are not tax-free, unlike profits from spread betting.
4. Broker Requirements: To trade DMA, you will need a CFD broker. For OTC trading, you can use a market maker, who doesn’t hedge their client’s positions with liquidity providers, but instead takes the risk themselves.
5. Availability of Stocks for Short Selling: OTC CFDs often offer a greater list of stocks available for short selling than is possible in DMA CFDs.
The choice between DMA and OTC CFDs depends on your trading strategy, risk tolerance, and the level of control you want over the trading process. It’s also important to consider the availability of stocks for short selling if that’s part of your strategy.

The Advantage of OTC CFDs such as the ability to short sell stock CFDs that you cannot do in DMA CFDs due to borrow
One of the key advantages of Over-The-Counter (OTC) Contracts for Difference (CFDs) is the ability to short sell stock CFDs. This is particularly beneficial when you anticipate a drop in the value of a share. By taking the opposite position and short selling stock or index CFDs, traders can manage potential downside risk. This is achieved by ‘locking in’ existing profit or loss without needing to sell any shares and crystallising a potentially taxable capital gain.
In contrast, Direct Market Access (DMA) CFDs may not offer the same flexibility. While DMA provides direct access to the underlying exchange and tighter prices, it may not always allow for short selling of stock CFDs. This is primarily due to the requirement of borrowing the underlying asset in order to short sell, which may not always be possible in DMA trading. Therefore, if short selling is a key part of your trading strategy, OTC CFDs may offer more opportunities.
In summary, while both OTC and DMA CFDs have their own advantages, the ability to short sell stock CFDs even when borrowing is not possible makes OTC CFDs a preferred choice for some traders. However, it’s important to remember that all forms of trading carry risks and it’s crucial to understand these risks before making a decision about trading CFDs.

TradeDirect365 Great List of Stock CFDs You Can Short Sell and Great Margins Not Available Anywhere Else
TradeDirect365 is a renowned trading platform that offers an impressive range of products, including Contracts for Difference (CFDs) on a wide array of stocks. One of the standout features of TradeDirect365 is the ability to short sell stock CFDs, a feature not commonly available on all platforms.
Short selling is a trading strategy where you can profit from a decrease in a stock’s price. With TradeDirect365, you can short sell stock CFDs even when borrowing is not possible, which gives you a significant advantage in your trading strategy. This is particularly beneficial when you anticipate a drop in the value of a share. By taking the opposite position and short selling stock or index CFDs, traders can manage potential downside risk.
In addition to this, TradeDirect365 offers great margins that are not available anywhere else. This means you can trade with a fraction of the capital typically required, thereby maximizing your potential returns.
Our review of TradeDirect365 has highlighted these unique features and the platform’s overall ease of use. The platform is intuitive and user-friendly, making it suitable for both beginners and experienced traders. Furthermore, TradeDirect365 offers excellent customer service, ensuring a smooth trading experience.
If you’re looking for a trading platform that offers the ability to short sell stock CFDs and provides great margins, TradeDirect365 could be the right choice for you. We encourage you to open an account with TradeDirect365 and start exploring the numerous trading opportunities it offers.

Conclusion
In conclusion, this blog has provided a comprehensive overview of trading DMA CFDs and short selling ASX shares. We’ve delved into the differences between DMA and OTC CFDs, highlighting the unique advantages of each. We’ve also explored the concept of short selling and how it can be a powerful tool in a trader’s arsenal, particularly when using platforms like TradeDirect365 that offer a wide array of stocks for short selling.
Nick Fabrio’s expertise and insights have been instrumental in shedding light on these complex topics. His experience in the field is a valuable resource for both novice and seasoned traders. We encourage you to delve deeper into Nick Fabrio’s strategies and consider TradeDirect365’s offerings to enhance your trading journey.
As we wrap up, here’s a question to ponder: How can understanding the nuances of DMA and OTC CFDs, and the strategy of short selling, transform your trading approach?