Make More Money With Financial Spread Betting
Wednesday, July 23, 2008
Financial spread betting is a tax-free way of playing and invest in the markets (all profits are 100% tax-free). One of its main attractions especially for new operators is that all global markets can be traded with very small sums of money to spread betting a great tool for learning about the markets. Here are 5 tips to help you make more money.
1. Watch those dealing with costs
Spread placing brokers charge commissions but not the costs involved. They will always include an offer wider dissemination and offers on traditional markets. For example, gold futures on the tender offer will normally be $ 0.10 or $ 569 and offers £ 569.10 offered. But the spread bet broker cites normally around $ 0.50 or $ 568.80 to £ 569.30.
These additional costs can have a dramatic effect on profitability over time, especially if the merchant likes to many trades in the short term. Discount costs at your own risk, because what happens in the short term many traders are making money gross, but net loss when costs are taken into account. One way to combat this is to reduce the amount of transactions you cherry-picking the greatest probability.
2. Use tables but keep your simple analysis
If you agree with the mapping and analysis technique is not very important because more than 80% of the market does. So if you know the majority of market participants are looking for cards, you must keep an eye on them, know how your enemy is thinking so to speak!
Points are to monitor table where large levels of violation, such as 50 or 200 day moving average and the price of buttons significant high or low.
But the best traders tend to try to maintain their mapping simple. Anyone who has access to a £ 300 personal computer can now number 1001 crunch with different indicators. The use of all these indicators has been massively diluted over the years. Instead, try to focus on the shape and nature of the card, he air upward / downward etc and there broad levels of support or resistance ahead. If so, watch how the market reacts and trades around these levels may give many clues about the future.
3. Do not be afraid to use spread betting holding long-term positions
Today, everyone seems to be obsessed to try to move all exchanges on the market. But with the spread betting because of higher costs in the short-term trading, it is often a better tactic to focus on trade moves in the longer term.
Focusing on long-term movements can have a triple advantage. Firstly, the cost is losing its relevance, on the other hand, it is often less difficult locking long-term shifts and trends that all catches short-term ups and downs. And thirdly, you do not need to waste time following the market all the time. The author for example, once held a position or using the spread betting for more than a year.
4. Use dummy accounts to the first launch Out
Most if not all of the spread betting companies offer "ghost" to the accounts of new customers in its infancy. Practice accounts are excellent training tools not only to introduce people to spread betting, but also how the trade all the different markets and how to place orders properly.
Then, after a month or if a small amount of deposit money in an account and trade very small posts. When you start to have more confidence in your own abilities, strengths and weaknesses add more money into the account over time. A lot of money was lost by new customers depositing large sums of money, then blowing a big part of it because they did not understand the game.
Be smart, look long term and ease of you and your capital markets.
5. Do not trade what you do not know or understand
May you understand the stock markets and how to make money but it does not mean you'll be able to exercise this knowledge and understanding of different markets with all different characteristics.
Basic especially those grown in the soil are a classic example of this situation. Weather, drought, shortages and other fundamental reasons can radically change the market prices sometimes within a few minutes or maybe with the opening of the market 10% more or less the next day. So if you want to trade in these types of markets do a little research on what can move and the historical study charts to see how the price can move if things get hairy.
A good rule for all of these commodities is that when they enter what is called a "weather market" or the time of year when excessive rain, the sun or the freezing can seriously effect the culture automatically shrink your negotiating positions.
Summary
Trade is as much on the skills that experience, in fact, the more likely they feed each other. That is why it is so important to address the goal of making money in the spread betting world from a position of knowledge and strength. Hopefully this article gave you some tips to go ahead and increase the value of your account.
Labels: Make Money
posted by Master @ 2:54 AM,