More Spread Betting Tips
Continuing our series of Spread Betting Tips – a mixed bag for you:
38. There are many reasons to financial spread bet but spread betting can be problematic in slow moving markets. If a market doesn’t move around much then try to avoid it – any profit could be eaten up by the spread. That means zero upside and the potential for a loss. Likewise if you do want to spread trade on a slow moving market then you may be better off trading the longer quarterly markets. You may also want to consider share trading for slower moving markets
39. Many people recommend you keep your stakes minimal for your first year. That’s a long time and difficult to do. However the theory is that there is plenty of time to increase your stakes when you have more experience
40. Emotions. They do have a habit of getting in the way of trading. When you start trading with real money your emotions will play a part. After a few months of real money trading try to compare your real money Trading Spreadsheet with your paper trades. It’s probable that you’ve changed your thought / risk process a little. Again, try to stick to your plans and minimise the natural human emotions that will come with real money trading (being excited and/or scared rarely helps you trade!). At least if you’re spread trading with small stakes you shouldn’t lose too much.
41. When dealing over the phone check your trades online or via your contract notes. The dealer on the other end of the phone is human, they will make mistakes. It’s handy to note that the FSA requires them to record every phone trade. If you think there’s been a mistake on a particular phone trade ask the dealer to ‘check the tapes’. They will even replay the conversation down the phone if you ask! However do be polite. I’ve listened to many of these calls and dealers get bored of this. More often than not it’s you who said Sell instead of Buy, stated the wrong stake etc.
42. After every online spread trade check your online account history. Has the trade been logged? Is it correct? Have you made a mistake? Does it have the right stake size etc? If you have any queries on a trade contact the relevant Customer Service Departments as soon as possible.