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When starting out Spread Betting it's best to risk small amounts of capital
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I was a broker for a long time, although not in spread betting, and I witnessed countless clients new to the game of speculation come and go quickly.

Their crime was that they jumped in at the deep end without realising the waters were dangerous.

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.

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.

Be somewhat wary of using 'Dummy Accounts'

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.

WARNING! - Spread Bet Broker Advice

There are good spread bet brokers and there are bad ones.

Having a good broker won't guarantee you profits but a bad broker will probably lead to losses as a combination of their gamesmanship and suspect software takes its financial toll.

So who do I recommend?

Simple, the 2 brokers I personally use for my own spread betting (and I've used them for years) -

FREE Report : How to Learn Spread Betting and Prosper
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Where to get trading help and advice
Which broker to use and why
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