Spread Betting Tips: 5 Proverbs to Help Your Trading
Spread Betting - Practice Makes Perfect
Financial spread betting providers such as City Index offer a comprehensive range of educational resources to help you to maximise your trading potential.
Spread betting seminars, webinars and educational guides enable you to enhance your financial knowledge, while lower minimum spread bet sizes and spread betting demo accounts allow you to build up your spread betting confidence gradually.
Spread Betting - Look Before you Leap
Always, always, do your research and set out a clear spread betting strategy covering price objectives, entry points, exit points, prices of related markets, chart analysis, stop losses and limit orders. Then simply stick to it.
Trading with a well thought-out spread betting plan will allow you to make better decisions such as when to cut your losses and when to let your profits run.
Spread Betting - Knowledge is Power
With such a wide range of spread betting markets it is important to spread bet on the markets that you know and understand.
By the same measure, knowing what is going on in those markets at any given time can prove invaluable for your spread betting.
With the advent of mobile trading platforms and iPhone spread betting you can keep up with price movements throughout the day and act on them in real-time.
Spread Betting - A Penny Saved is a Penny Earned
Ultimately, financial spread betting success is as much about minimising your losses as it is about maximising your profits.
Most traders, at some point in their spread betting career, make at least one losing spread bet, the key is to ensure that your spread betting profits outnumber your losses. With this in mind, you should put in place stop losses to close losing spread betting positions once they pass your predetermined trigger value.
Spread Betting - A Fool and his Money are Easily Parted
Remember, spread betting is a leveraged product meaning that it allows you to control a much larger position than your deposit would normally give you in the underlying market.
The advantage of this is that your winning spread betting trades can return much greater profits. However, the main risk is that your spread betting losses can be magnified in exactly the same way.
If you make a profit, resist the temptation to spread bet again too quickly and give it straight back.
City Index Account / Website
Spread Betting Tips
Risk Warning: Spread betting, CFDs and Forex trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
'Spread Betting Tips: 5 Proverbs to Help Your Trading' edited by DB, updated 09-Nov-10
For related pages also see:
Hedging with Contracts for Difference, updated 05-Nov-12
Hedging with Contracts for Difference: Hedging is a technique CFDs investors use to help diversify their risk. Often, traders will hedge the USD against commodities markets like...read article: Hedging with Contracts for Difference.
Commodities Trading: Chinese Economy Weakens amidst Falling Iron Ore Prices, updated 05-Sep-12
Spread betting investors have had much to say about the data coming out of China with GDP recently falling below 8%. Similarly, in commodities trading, iron ore prices have...read article: Commodities Trading: Chinese Economy Weakens amidst Falling Iron Ore Prices.
Investing During a Bubble, updated 07-Jun-12
Investing During a Bubble - Financial bubbles can be extremely lucrative for traders, but they can also be extremely dangerous. To aid you, spread betting provider City Index, looks...read article: Investing During a Bubble.
Protecting Your Shares with Financial Spread Betting, updated 06-Jun-12
Protecting Your Shares with Financial Spread Betting - One increasingly widespread way to ensure your portfolio isn't damaged by the current economic volatility is to hedge...read article: Protecting Your Shares with Financial Spread Betting.
Financial Spread Betting and a Dead Cat Bounce, updated 06-Jun-12
Financial Spread Betting and a Dead Cat Bounce - The phrase has long been used on Wall Street and financial trading in general to describe a short rise in the price of a declining...read article: Financial Spread Betting and a Dead Cat Bounce.
Breaking Bad Spread Betting Habits, updated 28-May-12
Breaking Bad Spread Betting Habits - Every spread bettor knows about cutting their losses and letting their profits run. Yet, most spread bettors still give in to poor trading ...read article: Breaking Bad Spread Betting Habits.
Managing Your Spread Betting Risk Exposure, updated 16-May-12
Managing Your Spread Betting Risk Exposure: When managing your spread betting risk exposure it is important to remember than there is no blanket rule for how much of your spread betting capital you should...read article: Managing Your Spread Betting Risk Exposure.
Financial Spread Betting and Leverage, updated 03-May-12
Financial Spread Betting and Leverage - spread betting companies let investors trade on margin. This leverage means investors don't need to put down large deposits, however it also means...read article: Financial Spread Betting and Leverage.
City Index Market Reviews, updated 05-Nov-12
An index of market reviews from City Index. The reviews talk through a range of topics such as diversifying your risk, short selling, protecting your shares, trading a dead cat bounce, managing your spread betting risk, trading the FTSE 100 and improving your...read article: City Index Market Reviews.
Q) Average Trading Results?
A) Get free trading tips, offers, price updates, important news and more!