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Financial Spread Betting Guide
By John | July 30, 2010
I know that there are many people who have or are thinking about taking up financial spread betting as a way of trading. I want to talk a bit about what it was like for me when I started, let you know what I have learned on the way and how this might affect you.
I have been financial spread betting for a while now with varying degrees of success. I made more losses than profits when I started. I suppose that it was to be expected. The problem I had was that I blamed the market. I used to think I was making losses because the market was too erratic. I now accept full responsibility for it.
I don’t think I was alone in lossing in my first year. I don’t have the stats but I imagine that the majority of traders lose money in the first year. You should expect that too. You should set a goal of trying to breakeven in the first year. Do that and you are doing well.
Hopefully you are still intrigued about financial spread betting to make you continue to want to learn more even after learning you might lose money, especially at the beginning. Now that I have introduced the idea of making losses, how large should your trades be? Well you should keep your bet sizes to a minimum.
Don’t worry about starting small. It won’t be forever. When you start to make some steady gains then you can up the risks that you make. The key is being in the game still and having enough capital left so that you can bet bigger when you have the ability and the experience to do so. Even if you think a trade is a certainty still start small.
That has hopefully given you a brief introduction into what to expect from financial spread betting. I hope that I haven’t put you off and that you consider taking it up in the future. You should still take the time to research this more and fully understand all the risks involved.
Topics: Investing |
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