Learn to be a Financial Hunter - Not the Hunted

How to Learn Spread Betting and Prosper
Introduction
Spread betting is a great tool for trading the financial markets because it's -
  • Flexible
  • Relatively inexpensive to trade
  • Small money can be risked when starting out (major advantage)
  • One account can be used to trade a myriad of different markets
  • Online trading platforms are excellent, and of course
  • Profits are tax-free

However, when you enter the trading arena, even with a small amount of money, you're starting to play an extremely serious game, one where fortunes are routinely made and lost. And anywhere that offers the potential of great riches attracts some of the planet's most brilliant and competitive people.

So don't kid yourself, it's not the market you're up against when you trade, it's the other traders and they want to get hold of your money just as much as you want to get hold of theirs. However, there's only a limited amount of profit available and this is a fundamental point to note and one that many people miss.

It's therefore unwise to try to take these people on, many of whom have established themselves over many years, without laying down some proper foundations and that is what this guide is about.

Sadly, I cannot guarantee you'll be able to make money in the markets, but what I can guarantee is this - If you work hard at this guide you will be head and shoulders above the majority of new traders because many don't take their time and rush into trading, and subsequently pay a heavy price.

What this guide is - What this guide is not

What you're reading is not a 'how to make money' guide offering strategies to help you easily buy low in the FTSE 100 or the Euro and then sell high. But see this link if you want to learn how to trade properly.

Warning: if you don't put in the effort and are unwilling to work hard then it's going to be very hard to make money overtime.

Instead, this is more of a 'how not to lose money by getting properly trained' guide. Sadly, when I was a broker I witnessed countless clients new to the game of speculation lose unnecessary money because they didn't understand the basics. These are just some of the examples why they lost money -
  1. They didn't have a good grasp of the markets they were trading - although they thought they did

  2. They didn't properly understand the different orders - when to use them, when not to, and their inherent advantages and disadvantages, and the biggest of them all

  3. They didn't respect and understand leverage - instead they thought the game was all about potential profits and worried too little about potential losses (until too late)
In effect what many of these new clients did was dive straight in at the deep end without either checking how deep it was, or indeed if there was any water. Of course many lost money, and some of them enormous amounts.

But the majority of the mistakes they made could have easily been avoided if they took their time, and that ultimately is the main point of this guide - to convince you to take your time in learning. Because as I indicated above it's not you against the market, it's you against the other market participants and you can bet the majority of them are well prepared.

Want market success - Then gain experience
Market experience won't guarantee you'll be able to make money. But it will guarantee you'll know what you're doing and how to handle yourself in the trading trenches. Experience therefore plays a vital role in any successful trader's game plan.

The key factor to gaining experience is longevity which I mentioned above when I stated many new spread betting clients bust themselves out before they have a proper chance to properly learn the business.

Experience when applied to speculation, including spread betting, can be broken down into 3 separate parts -

  1. Experience of the application of trading - how the online software works, what the different orders are and how to use them etc

  2. Experience of how the markets work - and how you can profit from them

  3. Experience of the psychological aspect of trading - and how to control it
Those 3 points are the foundation of this guide, so let's get going and jump start your spread bet training.

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