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Can Spread Bets be used to day trade the markets
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Last update : July 2010
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| Personally I wouldn't recommend day trading to anyone, whether trading spread bets or not. This is because the day trader has the odds stacked against him via the cost of doing business.
Far too many people believe that successful trading is all about buying and selling at the right time and price, and of course that helps tremendously.
But they tend to forget the cost of doing business is an extremely important factor as well.
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| Yes, there are no commissions with spread bets but the bid-offer spreads can be expensive. Put simply, the more you trade the higher your costs will be and the more profits you'll have to pull out of the market. Day trading might sound sexy but it's a tough way to make a living, as the majority of day traders know only too well.
My advice is to -
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- Either trade the markets with a longer term view, perhaps looking to hold positions many days if not a few weeks, or
- If you do want to day trade pick the right days to do so, ie those where there's plenty of volatility and movement
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| Otherwise, if you trade every day it's odds on that you won't be able to turn a profit over time.
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| The importance of getting the right spread bet broker |
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There are good spread bet brokers and 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. Read this page for more details.
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FREE Report - How to Learn Spread Betting and Prosper
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How to build the all-important trading experience
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Where to get trading help and advice
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Which broker to use and why
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Simple 2 month training plan to follow
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Download the FREE report |
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Read more in the Spread Betting section:
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