Hello,
I used too SB on the US indices, but stopped doing it for the following reasons:
1) You cannot rely on the SB co's price being near the actual cash price, which was what I was trading on. When things are really flying, it could be 10+ points away, plus the spread, which means you have to make a significant number of points just to stand still.
The frustrating thing about this is that I was showing a good profits vs cash index but nothing on the SB,
so i couldn't do anything until the spread had moved back in line, which the majority of the time resulted in opportunities lost.
2) spreads are too expensive to day trade, IMHO. 5 to 7 on the Dow, 1 on SP, 3(?) on NASDAQ. If you are taking a position and holding for at least a few days, then fine, but for day trading it is too expensive
Factor in a bit of overtrading and found i quick way of losing money. I now trade the minis which I feel a lot more comfortable with as I know I'm not going to get screwed by the price (to the same degree anyway).
However, having said all that, it is a great way too learn and if you can master day trading with SB then the real thing should be easier. Finspreads is good because you can play with tiny amounts, but I would say that for intraday, you have to at some point move over to the actual stock or future to be successful - I'm sure there will be loads who will disagree but it is important to trade with a style you feel comfortable with, the lack of price control with SB was important enough for me to look elswhere.
I used to use finspreads, other sites maybe better, worse.
good luck with it.
.
I used too SB on the US indices, but stopped doing it for the following reasons:
1) You cannot rely on the SB co's price being near the actual cash price, which was what I was trading on. When things are really flying, it could be 10+ points away, plus the spread, which means you have to make a significant number of points just to stand still.
The frustrating thing about this is that I was showing a good profits vs cash index but nothing on the SB,
so i couldn't do anything until the spread had moved back in line, which the majority of the time resulted in opportunities lost.
2) spreads are too expensive to day trade, IMHO. 5 to 7 on the Dow, 1 on SP, 3(?) on NASDAQ. If you are taking a position and holding for at least a few days, then fine, but for day trading it is too expensive
Factor in a bit of overtrading and found i quick way of losing money. I now trade the minis which I feel a lot more comfortable with as I know I'm not going to get screwed by the price (to the same degree anyway).
However, having said all that, it is a great way too learn and if you can master day trading with SB then the real thing should be easier. Finspreads is good because you can play with tiny amounts, but I would say that for intraday, you have to at some point move over to the actual stock or future to be successful - I'm sure there will be loads who will disagree but it is important to trade with a style you feel comfortable with, the lack of price control with SB was important enough for me to look elswhere.
I used to use finspreads, other sites maybe better, worse.
good luck with it.
.
Beach Runner
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I used to spread bet intraday a few years ago just before the SB companies went online (I think there were only two or three companies then). This was via the telephone and - this is were I do my comedy routine - I used Teletext (for IG quotes) and scalped (if roughly 10 points can be called scalping). I'd watch the TV and frantically dial a number and get the price of the FTSE 100 screamed down the phone at me, and I would shout back my bet. A few minutes later I'd be dialling the number to get out and spewing up my coffee on the cat (I didn't have a cat but it gives you an idea of my mental state).
Unbelievably, in a quiet way, I was profitable. I am certain this was because I was lucky that the volatility at the time was high due to the dot-com boom. And good karma from ten previous lives must have helped. I had no background in the financial markets (still haven't) other than a bit of dealing in shares but I had read a few books and I knew watching Teletext on Channel 5 this was not the way to trade - but I was computer illiterate (nothings changed there) and a technophobe, so I tried it the old fashioned way first.
But the stress guys, the stress... The hand trembling as you dialled the number to get out quick. The prayers to any god that they would pick up the damn receiver. I know some position trade by telephone and that is more likely to work - but scalping by Teletext was a unique experience.
Ah, those were the days. So yes, I've spread bet intraday.
I can hear that laughter!
Unbelievably, in a quiet way, I was profitable. I am certain this was because I was lucky that the volatility at the time was high due to the dot-com boom. And good karma from ten previous lives must have helped. I had no background in the financial markets (still haven't) other than a bit of dealing in shares but I had read a few books and I knew watching Teletext on Channel 5 this was not the way to trade - but I was computer illiterate (nothings changed there) and a technophobe, so I tried it the old fashioned way first.
But the stress guys, the stress... The hand trembling as you dialled the number to get out quick. The prayers to any god that they would pick up the damn receiver. I know some position trade by telephone and that is more likely to work - but scalping by Teletext was a unique experience.
Ah, those were the days. So yes, I've spread bet intraday.
I can hear that laughter!
top post. made me laugh!
I've not taken that particular route but have on numerous occasions been under similar levels of self inflicted stress due to:
1) web sites not working
2) being booted out of my "free" dial up ISP and not being able to get back in (not wanting to call them up as then they would be able to put a voice to the idiot things I was trying to do - taking a loss? why not double up, losing more? just double it again!)
3) having to go out. yes, sometimes I had to go out and so left the trade to run! - if you do the daily cash you get the closing price, so I thought if it went really badly wrong then i would get closed out anyway.
seems funny looking back on it but was no way funny at the time!
I've not taken that particular route but have on numerous occasions been under similar levels of self inflicted stress due to:
1) web sites not working
2) being booted out of my "free" dial up ISP and not being able to get back in (not wanting to call them up as then they would be able to put a voice to the idiot things I was trying to do - taking a loss? why not double up, losing more? just double it again!)
3) having to go out. yes, sometimes I had to go out and so left the trade to run! - if you do the daily cash you get the closing price, so I thought if it went really badly wrong then i would get closed out anyway.
seems funny looking back on it but was no way funny at the time!
There are almost as many opinions on such subjects as there are traders, because everyone has their own experiences, which seem to vary hugely. I particular dislike the attitudes of the senior staff at Finspreads. I find it difficult to understand, with CapitalSpreads and TradIndex around, why anyone should want to use Finspreads for anything, but that's just my personal opinion.Aussie Battler said:
going back to the thread subject, i SB forex on a breakout strategy. I find that the main pairs, particularly cable make significant enough tradable intraday moves to cover the extra costs and bias 
It does however make setting stops difficult because a 20pip stop can be hit from not much more than 10pips cash movement when the bias shifts.
I am not quite as consistent as i would like just yet but I take the view that as I am not losing money, I am continuing to learn my markets on an easy flexible, if expensive platform, when I find consistency i can move to a proper broker with lower costs, to boost profits.
It does however make setting stops difficult because a 20pip stop can be hit from not much more than 10pips cash movement when the bias shifts.
I am not quite as consistent as i would like just yet but I take the view that as I am not losing money, I am continuing to learn my markets on an easy flexible, if expensive platform, when I find consistency i can move to a proper broker with lower costs, to boost profits.
Absolutely, and why not? Indeed, I seem to remember doing much the same thing at one point ... (by the way, just in case you didn't know, CapSpreads and TradIndex, among others, have a "play money" facility; but I realise that's not the same thing at all as 50p per point! But, arguably, still better to practice on the same platform that you're going to be using later when it matters more?).Aussie Battler said:
mauzj
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I openned an account with all the SB's a few months ago with the intent of arbing them. I decided not to even depositing any cash with them after hearing negative news, but Finspreads keep on calling me and asking why I haven't started trading. What am I supposed to do? Tell them that I don't trust them and wish they'd just leave me alone?
Blimey ... rather you than I. Opportunities must surely be few and far between? How would you manage to get trades on in the same second before prices move?mauzj said:
Yup; absolutely typical Finspreads.mauzj said:
Personally, with them I wouldn't put it so tactfully.mauzj said:
I was under the impression that Deal4Free Forex spreads are the same as those quoted by their other arms which means that there is no disadvantage in spread betting forex with them as opposed to CMC (the same company).
As far as the indices are concerned, 2 to 5 point spreads are not that difficult to cover when the markets are moving. One needs to remember that the companies' quotes are based on the futures as opposed to the cash market which makes any difference slightly irrelevant.
Deal4Free share quotes are roughly in line with the underlying share prices give or take minor fractions and once again, that should not prohibit the individual from being able to trade profitably on an intraday basis using spread betting.
As far as the indices are concerned, 2 to 5 point spreads are not that difficult to cover when the markets are moving. One needs to remember that the companies' quotes are based on the futures as opposed to the cash market which makes any difference slightly irrelevant.
Deal4Free share quotes are roughly in line with the underlying share prices give or take minor fractions and once again, that should not prohibit the individual from being able to trade profitably on an intraday basis using spread betting.
bottomdollar
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I've been trying to SB for a couple of years now.. overall loser unfortunately.. though I've had 20 winning trades on the trot now and again when I'm overly cautious and patient and only trade when I see a signal. A lot of the other time I just put on a trade for the wrong reasons.. want to get in on some action, trade on gut feel, revenge trade etc.
The SB companies move the spreads according to where they think the market is going.. if it's volatile you will find in a bearish intraday market, the spreads are moved towards the lower end of the scale and then as soon as the tides are turned and the conditions look bullish, the spreads straddle the higher end of the prices... meaning you could be 10 pts out of favour even if the spread prices are 5pts.
SB is prob more suited towards swing/position trades... there are too many things which work out of your favour in the intraday market.
Hope that helps
BD
The SB companies move the spreads according to where they think the market is going.. if it's volatile you will find in a bearish intraday market, the spreads are moved towards the lower end of the scale and then as soon as the tides are turned and the conditions look bullish, the spreads straddle the higher end of the prices... meaning you could be 10 pts out of favour even if the spread prices are 5pts.
SB is prob more suited towards swing/position trades... there are too many things which work out of your favour in the intraday market.
Hope that helps
BD
