Spread betting the S&P 500 on a budget

I could do with some tips for spread betting the S&P 500 on a very small budget (£200).

I started trading a few months ago and have been slowly losing more than I gain. I've read the books on trading psychology and risk reward ratios but still the account gets smaller. I'm currently trying the buy/sell and hold strategy for a couple of weeks (rather than scalping).

If anyone has any tips on techniques and successful strategies I'd be keen to hear.

Regards

Martin

marelton said:

I could do with some tips for spread betting the S&P 500 on a very small budget (£200).

I started trading a few months ago and have been slowly losing more than I gain. I've read the books on trading psychology and risk reward ratios but still the account gets smaller. I'm currently trying the buy/sell and hold strategy for a couple of weeks (rather than scalping).

If anyone has any tips on techniques and successful strategies I'd be keen to hear.

Regards

Martin

Click to expand...

Hey Martin, hope you dont mind me making a comment, the SPX isnt really what you want to be trading on a tight budget - on a mini contract, the price has only gotta move about 3/4 points and it will wipe u out.... !!
Scalping isnt something for beginners AT ALL - everyone has this fantasy about sitting there in their pjs raking in HUGE amounts of money off a few ticks here n there - it doesnt work that way (well not to start off with).. A lot of day traders sit there for HOURS trying to make money off that " noise " in very short time frames and even they are STILL loosing money... !!
What time frame are you using..?? starting off, try not to go any lower than a 4hr chart, and try currencies for example..
Your TOTALLY CORRECT to be looking at risk/reward ratios because thats actually THE biggest thing that people just " dont get ".... !! (and that will make or break your account if you get it wrong) -(over time).. !!

" THE " thing which separates the winners from the loosers in this business are -
E N T R I ES.......... !! :idea::idea:


James