One of the perverse facts about speculation is that you often learn the most from your losses. So in effect losing is not such bad news, as long as the losses are kept under control. And you keep losses under control by taking on small positions. Then, even if you make a complete mess of things it's not a problem.

This is why I always say, start small, ease into the game for the first few months and then begin to increase the size of your account when you feel more comfortable. For example, if I were planning to open a spread betting account with £3,000 I'd only pay in a maximum of £500 - £1,000 to start with.

• See Secret 1 - Trade small positions when starting out - which is one of our 10 Secrets to Successful Spread Betting

I would also make sure I fully understand the mechanisms behind spread betting, including all the different orders as well as the online trading platform. All of this takes time.

So be smart, start with small positions and you'll give yourself a far better chance than new traders who charge in.

Most of the brokers offer a dummy account where you're allocated say £10,000 in play money. Use this to trade the markets without risking real cash.

However, personally I think it's better to start risking proper money in the markets, albeit small amounts. Successful trading is as much about psychology than anything else and when real money is at risk the psychology plays a proper role. Who cares for example if you lose £5,000 in fake money during an afternoon, you'd probably just smile.

On the other hand if you're unsure of how the trading software works or need to gain experience of entering different orders and understanding how they work without risking your own money then obviously the dummy accounts are a good idea.