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FAQ Page 1 - Question 04

Q: Short term trading using spread bets does my head in! Can spread bets be used as effective tools to longer trade the markets?

A: Yes they can. Longer term trading has many advantages over day trading and even investing in the cash stockmarket.

Most day traders lose money simply because they can't cover their costs which include commissions and the bid-offer spread. When I used to day and short term trade the markets I would normally make money today, and then lose it the next. Up and down my account went but never really moved from month to month.

I always knew that I wasn't bad at what I call medium term trading, or holding positions for 1 week to 6 months, so I simply started to play to my strengths and look to trade with at least a weeks if not 3-6 months time view.

The advantages for me are as follows:

• less pressure
• far cheaper dealing costs
• not chained to the screen
• far easier strategy to follow