Do SB firms make it impossible to win big? I've read so many messages on the internet from people saying it is impossible to win big with spread betting. If you are succesful and trade with a big stake, the sb firms boycot you from winning. IS THIS TRUE? Are the SB firms some sort of maffia where you can only loose money? Can they do that? Isn't there some kind of law or regulations to protect the clients from the sb firms???
They can do whatever they like, they may get fined but thats nothing to how much they make from it. Dont hold really large accounts and spread your money around would be my advice.
It has always been my viewpoint, if you can't make it SB you wont make it trading the real market as well. It all comes down to money management, not taking too much risk in reference to your capital. Don't take for granted all these horror stories trading SB, they did not have money management in the first place anyway. If one SB put some restriction on your trading style, just move on to some other SB, not a big deal really.
good read
Hello,
I tend to agree with you as well. It sounds paranoid that SB firms are after you if you trade large size, and it's too easy to find alternatives to be so. Besides, large size for SB, say >£500/pt, means that you have at the very least a £100,000 minimum bankroll, in which case you are: A. a professional trader who has grown his account over time and will know immediately if the SB firm is trying to hustle him before it becomes a problem; B. wealthy but just using SB for punting, which is fair enough but means you likely have a limited understanding of financial trading and will lose money because of your own errors, not the SB's.
On a side note though I have found the Gann excerpt quite counterintuitive.
To understand human nature and exploit human cognitive weaknesses for successful trading is indeed paramount as far as I'm concerned, but I disagree with the "buy/sell the bottom/top against the public" bit.. Whether the public is right, wrong, knowledgeable or not, is not relevant if it represents the majority of volume. I have found that it can be most profitable to understand human weakness and go along, rather than go against.
But that's just a small comment, perhaps I misunderstood the original idea.
in a way yes ..........you need to be a complete donut to drop more than £5-10k in a SB deposit account ........
Nope, its the way in which others opinions have to be losers. I was stating my opinion, on my experience. You were able to take that and generalise that anybody who had a problem with SBs must be a loser..who exactly is being rigid in that scenario Samir?
And I shouldnt bring my point to a discussion forum..they dont call you straight jacket by any chance do they?? lol
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