Tactics and Tips When Spread Betting on Financial Markets - A Basic Introduction.
What can you bet on ? - well anything concerning financial affairs - from shares,commodities,currencies and lots lots more!.
Back to financial spread betting,and this is just an introduction,as you proceed,you will need to study each aspect of financial trading more closely that you want to bet on.
Basically you are betting on whether a price quoted will go up or down - it's as simple as that - just 2 choices.
However things can swing for and against you very quickly,they are based on real markets that are often volatile,so,stay alert and make,or cancel your bets quickly but calmly.
There is no time limit on your financial bets - you can decide to keep your bets open with no cut off,or you can specify a period when bets close - from 1 day to several months.
This allows you to watch the markets perhaps move back in your favour over a longer period - or watch in discomfort as your losses continue to grow (the same applies of course if your profits continue to climb).
It's time now to fully understand that your losses can greatly exceed you deposits,and if things go badly wrong you may be getting an unwelcome phone call asking for more funds to service your account.
Financial bettors can put a stop loss on their positions to prevent complete disaster - but you will probably have to pay a fee for that stop loss facility.
A major benefit of spread betting on financial markets is that there is no Capital Gains Tax - nor stamp duty or trading fees - the spread betting firms make their profits on the spread between high and low quotes.
As you get more comfortable with financial spread betting,you may want to take positions that oppose your previous still live bets - this way you can protect your profits and cut any potential losses.
Potential financial spread bettors need to be much more organized and attentive when betting on financial markets - follow a strategy you are comfortable with,and analyse your past successes,and more importantly,your bad positions taken in the past.
All readers are urged to firstly open a dummy account - this will let you make fictional bets,and also learn you how to use a spread sheet to fully understand where profits and losses occur (all spread betting firms will let you use a demo account before you start to bet with real cash).
Traders should always be aware that one market,where you may have no positions,can quickly have an influence on your selected market,so,again you need to be attentive and react quickly to any volatile movements in any financial market.
As you become more sophisticated in your trades,you will have other facilities for you to use,like,one trade cancels another,and pairs trading to enhance and defend your betting strategy.
Try to find your own niche market - and stick to it!.Traders who are successful tend to operate in just one or 2 markets - the options to bet on are huge,and you cannot become an expert in them all - analyse your demo bets and concentrate on the market(s)you have shown the most profit in.
Always restrict you open positions or bets to a little under 10 - more than that is asking for trouble as you struggle to keep abreast of latest news and influences on your positions.
Financial traders should always print off and file all bets made,immediately - if your computer crashes,or broadband is down,you could be in big big trouble - you won't be able to remember your positions,and with paper copies you can make adjustments using that hard copy information.
Most financial spread betting providers now let you trade from your mobile phone,so you can always bet or close positions on the move.
All spread betting firms will let you use their charts for analysis,but for the more ambitious traders,a more sophisticated and detailed software is available for about £250,which may increase your chances of success greatly.
There are free seminars organised by the spread betting firms,and these are probably as good as the expensive paid for courses (if those paid for lectures were that good they would be trading themselves).
Ignore tips and rumours on the forums - they are usually just trying to manipulate other traders into helping their own positions.
This article is just an introduction to the huge financial betting markets,and no encouragement is intended for readers to make spread bets on financial markets - but if you do - concentrate on 1 or 2 markets and become an expert in that field - and finally,remember,spread betting is dangerous for the new participant - you can lose much more than you originaly intended if things go wrong.
By Pendil at SAFE BOOKMAKERS SITES.©This article can be reproduced by anyone,so long as article is reproduced full and intact with all links unchanged.End of article.
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