In spread betting, you are trying to speculate whether the price of an asset will fall or rise. Spread betting happens on everything from shares, indices, forex markets and commodities. Basically, spread bettors are always taking a stance based on the prices offered by the spread providers. Here are some simple tips to make the best out of spread betting.
Show loads of patience
Spread betting is usually not about a massive stroke of luck for which you keep waiting and losing your money. In most cases, spread is about patience and building your profits minute by minute. Most successful spread bettors are usually patient in the sense that they are not looking for spectacular profits, rather using one strategy successfully and consistently. Such bettors would depend on small gains made patiently throughout the day rather than big wins followed by big losses.
Discipline in spread betting
Spread betting could win you money and make it disappear just as easily. Sometimes you may even lose your deposits. Discipline is required in spread betting wherein you don’t try your luck out in ten things and lose in all of them. Rather you should try to specialise in one thing, whether it is a kind of stock, one currency pair or an index. By doing so, you are showing discipline and making your expertise in it win you money. Spending more time in one arena will eventually help you to excel.
You shouldn’t back yourself for big risks. But invariably there are indicators you know about and identify before others. That is when you move in and take an early position before the rest of the market follows suit.
That way you will gain big. Following what others do will never really help you win much. You have to be ahead of the competition and take the big steps when you know something is going to happen, for example, a reversal of a trend or a market movement.
Given that Compare spread betting always magnifies the results, it is a good idea to avoid volatility to a great extent. Volatile targets are quite risky and unless you are making quick and small gains, they could prove to be a debacle.
A guaranteed stop loss is an expensive order which will help you stop at a particular price and get out. This will ensure that you have your safety limits set at all times. Paying that small amount extra is just to play safe. When the market is moving unpredictably and is volatile this could be your saving grace.
Knowing what you are doing
It would be a disaster if you bet without being sure what the bet size is. The profits and losses could be huge if your betting is not consistent with the size. So understanding the contract sizes and what will your profit and loss is for every single point in favour of your prediction or against it is very important.