A question to successful spread betters

This is a discussion on A question to successful spread betters within the First Steps forums, part of the Reception category; Originally Posted by Splitlink Surely, that applies, equally, to all broker clients, as well. The great majority of small traders ...

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Old Nov 17, 2007, 8:49pm   #50
Joined Aug 2007
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Originally Posted by Splitlink View Post
Surely, that applies, equally, to all broker clients, as well. The great majority of small traders fail and, I would suggest, much more quickly, because of the large capital expenditure required.

I tell you now, that I can handle a two point spread on an index trade. If anyone can't do that, then they are not yet successful traders and should, certainly, not be trading with a broker.

Therefore, all new entrants to this business should start with SB firms and they should be absolutely honest with themselves. The question must be. Did I, really, lose money on that trade because of them, or because of my lack of trading ability?

Split
Hi Split,

That is a very good post and it made me think alot about what I should look for in SB firms.

I think there are 3 main things to look for.

1. Knowledge of staff - This is very important to both new entrants and heavy traders in-particular. Do the people know what they are talking about in regards to educating you and taking orders. There is nothing worse than speaking to a muppet on the end of the phone that you need to educate after reading through your SB basics book!!

2. Trading Platform - You will find different platforms update prices at different speeds and with variable accuracy to the underlying instruments - mainly indicies. Also it goes without saying that features vary quite considerably, I notice that capital spreads don't provide a news service or guaranteed stops - charting and analysis features are very important things to look for too!!

Despite the headline 1 point spread on the FTSE, Capital Spreads are lacking many features. I find their prices are really slow to update and the lack of news/g-stops very strange. Also they outsource the whole of their IT infrastructure which doesn't provide me with much confidence using the platform and may explain alot of the persistent errors and problems reported on this site -

Capital Spreads employ the Ariel Titan I suite to power their entire IT operation. The full Titan I suite was intended to be a "brokerage in a box". It includes a customised user interface, administration site, price engine, order management system, and robust hosting solution. Titan I frees Capital’s management from having to manage an internal IT department


http://www.arielcommunications.co.uk/solutions.htm

3. Speed of execution - How quick do they fill your orders and do the allow your stops to slip heavily before being filled?

What I am trying to say is that spread isn't everything. Service, reliability, staff knowledge and size are the main things to worry about IMHO.

If you bet in the right direction and are provided with the best tools to select, deploy and manage those bets... you will be laughing.

Happy Trading

JK

Last edited by jkplay; Nov 17, 2007 at 8:58pm.
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Old Nov 17, 2007, 9:09pm   #51
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Originally Posted by SpreadBunny View Post
It means "the Myth" is true. You can't make money with spreadbetting.
Because no matter how good you are with your research, chart reading etc, they won't allow you to win.
Hi SpreadBunny,

Without meaning to sound confrontational who do you think you are??

Seriously... these companies have bets placed every two seconds. If you are taking short term positions £2000 a point on the FTSE then you may have a problem with them accepting orders but I would say doing that is insane unless it is to hedge broad share portfolio's (over a longer times frame) or looking to hold that position for at least 4 hours.

There are plenty of people making money spreadbetting, I think the strategy you are looking to adopt is foolish and you will learn that in time when you start using real money.

BTW, get away from paddy trader and try out a proper firm.

JK
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Old Nov 17, 2007, 10:05pm   #52
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Originally Posted by SpreadBunny View Post
It means that 50 bets per day is not possible. So the only way to do is to spread it by using two or three sb accounts simultaneouly. However, it means that you'd have to spread your seed capital, many windows opened at the same time and possibly have two or three laptops/pc and mouse (I mean mice). I can already see myself frantically flicking between different windows Pitty, I've only got two arms. But really, it kills the spontaneity side of trading as I would have to rely on planning ahead, placing orders to be triggered. Boring.
The way you explain it, spreadbetting is not possible. 50 trades a day on a 2 point spread is unrealistic, in the extreme. That is scalping and you have to know your stuff to do that with a broker, let alone a spreadbetting firm. A couple of small mistakes and you are down on the day, but you'll find that out soon enough, if that's what you are doing. Then---guess what--- you'll blame the SB company, cancel your account and open another one with someone else.

I've heard all this so many times.

Split
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Old Nov 17, 2007, 10:12pm   #53
 
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Originally Posted by jkplay View Post
Hi SpreadBunny,

Without meaning to sound confrontational who do you think you are??

Seriously... these companies have bets placed every two seconds. If you are taking short term positions £2000 a point on the FTSE then you may have a problem with them accepting orders but I would say doing that is insane unless it is to hedge broad share portfolio's (over a longer times frame) or looking to hold that position for at least 4 hours.

There are plenty of people making money spreadbetting, I think the strategy you are looking to adopt is foolish and you will learn that in time when you start using real money.

BTW, get away from paddy trader and try out a proper firm.

JK
errrn who am I? That's a good question. I am a newbie. Eventually, I'd like to be able to bet £10 or £20pp but have noooot thought about £2000pp

PPowerTrader was just to have a look... demo only.
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Old Nov 17, 2007, 10:16pm   #54
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Originally Posted by SpreadBunny View Post
I am a newbie. Eventually, I'd like to be able to bet £10 or £20pp but have noooot thought about £2000pp

PPowerTrader was just to have a look... demo only.
Hi,

Yeah it is quite clear you are a newbie and haven't ventured out of demo accounts yet, we where all there once.

£10pp, £20pp is fine, you will have nothing to worry about on the ftse or dow. You won't even be noticed on their books.

You mentioned it is impossible to make money spreadbetting in an earlier post, taking blind punts every 10 mins would certainly make you an incredibly luck guy if you where to become profitable and perhaps justify paranoia and suspicion when you fail.

Don't work with 10 point targets doing 50 trades a day. You will stop trading and just be gambling, biting you nails and loosing money most the time.

JK

Last edited by jkplay; Nov 17, 2007 at 10:47pm. Reason: EDIT
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Old Nov 17, 2007, 10:18pm   #55
Joined Jan 2007
Cool Seems a strange method to me

Quote:
Originally Posted by Splitlink View Post
The way you explain it, spreadbetting is not possible. 50 trades a day on a 2 point spread is unrealistic, in the extreme. That is scalping and you have to know your stuff to do that with a broker, let alone a spreadbetting firm. A couple of small mistakes and you are down on the day, but you'll find that out soon enough, if that's what you are doing. Then---guess what--- you'll blame the SB company, cancel your account and open another one with someone else.

I've heard all this so many times.

Split
Hi Split,

thought I would give you a lift here for once

I agree Split, and it seems like its harder than working for a living,

If my basic math correct and its usually as good as mmy spelling and grammer thats a trade entered every 10.2 mins on the ftse

when do I go for a sh...t or get time for my cup of Tee and a Kit Kat

Andy AKA
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Old Nov 17, 2007, 10:31pm   #56
 
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Originally Posted by develbis View Post
Hi Split,

thought I would give you a lift here for once

I agree Split, and it seems like its harder than working for a living,

If my basic math correct and its usually as good as mmy spelling and grammer thats a trade entered every 10.2 mins on the ftse

when do I go for a sh...t or get time for my cup of Tee and a Kit Kat

Andy AKA
Have you ever seen these online gamers who were so addicted to playing games that they started to use plastic bottles lol. eerrrh no. sorry I don't do that but my trading room is in the kitchen so I can make a tea while I am looking at my trade. Anyway, I don't make 2points x 50 trades all the time. Some are 2pts because I chickened out and come off early, some I make 10-15 pts and some I lose. But at the end of the day, if you make overall profits for the day that's what matters to me.
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