Beginners Spread Betting Strategies To Help You Make Money
Beginners Spread Betting Strategies To Help You Make Money
So you've decided to do spread betting. It is a fun and (if done correctly) financially rewarding 'hobby'. To help you out we listed a few spread betting strategies that can surely help you succeed in the competitive world of financial markets. To make it simple let us restrict our spread betting strategies to the FOREX and indices only. We will tackle other topics such as sports spread betting strategies later on.
Spread Betting Strategies # 1 Have total control.
Leverage is the keyword and the fundamental concept of spread betting. This means that when you risk only a minimum amount of cash you can still gain a large amount with only a bit of a budge in the price level of the market. On the same principal you can lose a big amount of money if you are not so careful with your money.
The ideal cash to have is around 10 thousand dollars in your account. This is a specific advice we learned while doing financial spread betting.
Before gambling any money on financial betting it is important to first start a demo account in which you can learn about currency pairing or index concern until you've mastered the market. Do not bet just because of gut feel, put you money on spread betting only when you have studied an established trend in the market.
When you see the trend sloping up go along with it but halt at 10 % or more below the 3-month low season. That period is called the arbitrary time in which you can decide for yourself if you want to do a longer period. Again observe the movement of the market in price level.
Having total control means stopping when you see that you're risking 5 per cent of your bankroll. If you feel like your going over you careful budget stop spread betting.
Spread Betting Strategies # 2 Stay away from day trading.
Day trading will not make you any money. The only 2 markets that show significant movement on a day to day basis is the FOREX and indices (DOW and FTSE). The sensitivity of the market however serves as a bane for day traders. So it is really impossible to gain profits from day trading using spread betting.
Spread Betting Strategies # 3 Self control is the trait that differentiates the winners from the losers.
As a spread bettor one of the first things you must do is to set a stop loss or limit order. Do not veer away from you limit and your budget. If you find that your stop loss is 200 points away from opening price then adjust your target profit to a maximum of 100 points. The volatile or sensitivity of the market really does cause the fall and rise of these markets and having a drop zone in the form of a stop loss is essential.