Most successful spread betters have unique strategies that guide their betting activities.
Effective game plans are what set winners apart from losers in the spread betting industry.
However, an effective spread betting plan or strategy cannot be developed overnight. You have to be patient and invest effort and time in a trial and error process of perfecting it. By following these tips from successful spread betters, you will not go far before you start winning big.
Limit your trade markets
There are many unpredictable markets. Betting that certain stocks will go up might seem the same as betting that the same stocks will go down. However, you can limit your risk of losing by selecting a couple of markets or areas where you trade and learn how the markets that you choose work so that you can feel how prices in these markets move.
Establish relationships with your chosen markets so that you can always be informed about the activities of those markets. For instance, if you choose CMC markets, make sure that you are always informed about their activities including losses, deposits and instruments.
Start out with small positions
If you are new to spread betting, you might lose a lot of money when you do things that you do not understand. The major problem is starting by betting too much for a trade. Therefore, be smart while starting out. For the initial months, start with small trading positions. You can bet for a maximum of £1 per point. Eventually, you will be ahead of new traders who indulge in betting a lot of money at ago only to run out of money after a few bets.
Be patient
When learning how to win big in the spread betting industry, you must be patient. Do not venture into betting with the perception that you have to trade every move. Instead, take time to watch your chosen markets and get a strategy then look for trades with small risk and large potential profit. Even if this means going for days or weeks doing nothing, then it is a sign of a great trader.
Vary trading size
You should not trade similar amount for every trade. It is important that you vary the sizes of your bets depending on the activities of the markets. For instance, when there is high risk, bet a low amount. When there is low risk with high profit potential, increase the size of your bet aggressively.
Use stop losses
Every time you engage in financial spread betting, use a stop-loss. Some spread betting firms insist that when making a trade you have a stop loss. Where you place the stop is largely dependent on the amount that you are ready to lose and the volatility of the market. For instance, you can place the stop 20 or 10 percent from the entry point. You can also place it at the latest resistant or support level.
Master trading psychology
Greed and fear move markets. Therefore, speculating and trading is a mental game just like buying and selling. When you win or lose, your mind and subconscious is affected in a different way. For this reason, some of the most successful traders say that speculation is basically 90 percent mental and 10 percent method. Therefore, try to control at least the mental aspect of the game.
Have an exit strategy
It is important that you always establish a strategy for exiting the trade before you make any spread bet. For instance, you can employ a trailing stop to minimize risk or lock in profits by selling your portion as trade moves in a favorable direction. You can also use a limit order to exit and a 3:1, 2:1 or even higher reward-to-risk ratio. Every time you need to ask yourself what action will you take if the reason for a bet is no more? Will you continue holding on in the hope that trade will eventually be good or exit trade immediately?
Basically, these are some of the tips on how to win big in the spread betting industry. The process of winning is all about finding the right odds and placing the right amount of your money on every outcome so that you can win more money back than the amount that you bet.
