It’s been a long time since we did any tips so 3 quick Spread Betting tips on Timing

Tip 72. Where possible, try to avoid trading at the beginning of the day. The markets often take some time to settle and can catch you out. Also because the Market Makers don’t want to get caught out the spreads on offer are often wider when the markets open. Consider trading 30 to 60 mins after the markets have opened. You can end up losing out on some opportunities but you are less likely to get caught out by unexpected trading news.

73. US Markets. Note that you can’t trade all the markets when the Dow opens. There is a staggered opening.

74. Trading at the end of play. The markets often have significant movements in the last 30 minutes of the day. This phenomenon has been seen a lot during the credit crunch and there are a number of reasons, eg:

a) Automated trading programs trading large positions and/or large numbers of positions
b) Positive / negative reports coming out of the US
c) The opening of the US markets / the US reaction to the UK market
d) The vicious circle that can quickly follow the above
etc

As with the start of the day, the spread betting markets can be very volatile at the close…and as always with spread betting…care should be taken with your trading.

In the next set of spread betting tips we will be focusing on Greed.

Have a good weekend and Good Luck

DB

Clean Financial - Spread Betting