just a quick question,there seems to be lots of debate on this site as to weather or not you can really profit from spreadbetting ,but to date no clear answer.
i just wanted to know if any one can clarify this for me.
I think it depends a lot on how you trade with spreadbetting. It is very hard to day trade stocks unless you are very lucky or very good.
If you take a slightly longer term view then decent money can be made.
If you do what most people do and see spreadbetting as a way to make a lot of money very quickly, then you will probably lose. It is a valuable tax free trading tool, that if used with care can be profitable.
You can make money but it is very hard.
You need many months or even years of experience
(months if you can find a good teacher, years if you cant)
However you also need a passion for trading you have to love
doing it otherwise you wont be able get over the months and
months of losing money that nearly every trader goes through.
If you dont have that passion and love for the game you will
just end up quitting after losing X thousands.
It really depends on how you want to trade if you are looking to trade intraday and scalp 10 points or so per trade then direct market is better. If you intend to take a position over a few days and look for larger moves then the spread is less likely to be a problem.
I have found the latter technique to be profitable with SBs but I can not stress the following enough
I appologise if you have heard the following.
Its important to have a trading strategy and stick to it, nobody says you have to trade every day, learn how the market you intend to trade moves, learn support and resistance levels.
The above views on SB bear out my experience, limited though it is.
A two or three day view seems to work best for me. Whenever I deliberately try to day trade I either lose money or escape by the skin of my teeth.
"I appologise if you have heard the following.
Its important to have a trading strategy and stick to it, nobody says you have to trade every day, learn how the market you intend to trade moves, learn support and resistance levels".