New to Spread Betting Help Me Pls !!!

[PeteA]

Trader333,
I was purely talking about spread betting - as in the title of this thread. Not spread trading.

stevet,
Thanks for your comments.
In retrospect, it would have been better to leave out the word 'statistically' in post 16 as it could imply a table of figures. I am not aware of any actual figures for spread betting, only opinions from the press and my associates. If figures are held by the spread betting companies, I would be surprised if they released them.

I have taken a cautious approach to spread betting, so far just doing a limited amount of live trading. My main concern is not to make a loss. But I have spent a lot of time researching and comparing different spread betting companies, trying out their test platforms and reading other peoples opinions on trade2win and MoneyAM boards.

steve, you commented:-
"and i do understand from spreadbetting personel - that no one makes money over time trading financials, be it indexes (indicies) or stocks ( i dont know anyone on the sports side)"

This surprises me. Does this apply to both indicies and stocks (not interested in sports) for all timescales? I would have thought that those holding over a longer period would generally do better than the day traders. The trading costs are small if held over a number of weeks. Personally, I do not day trade.

 

[Splitlink]

This surprises me. Does this apply to both indicies and stocks (not interested in sports) for all timescales? I would have thought that those holding over a longer period would generally do better than the day traders. The trading costs are small if held over a number of weeks. Personally, I do not day trade.

I agree. I successfully trade overnight with a spreadbetting company i.e. I am ahead on the total of all my trades this year. I am unable to daytrade successfully unless I have entered the trade with the intention of staying with it for a few days. Then I may take advantage of a selling opportunity before the close, either to take a profit or a loss, which makes me a day trader, although that was not my intention on opening.

Horses for courses. There are day traders and swing traders. Decide what you can do best.

Split

 

[Roberto]

So do I. So do many others who post here. So do many others I know who don't post here. So do some professionals who handle others' high-risk investment assets for a living.

 

[aussietrader]

There is a lot of talk about statistics and a number of claims being made on this thread. I am sure most of you don't realise that statistically speaking, 86.7% of statistics are made up on the spot.

Think about that for a while ;-)

AT

 

[stevespray]

AT - Indeed, I also heard that 86.7% of statistics are made up. Apparently the rest are just lies.

Steve.

PS - I'd go for Finspreads. You can bet mere pennies per point there. Point taken re stops. However, it is a play off between being able to bet very small vs stops. IMHO playing small is far more important. By playing too big you are almost certain to lose all your money. Not so with stops which you can still impliment yourself.

 

[Denny]

Statistics etc.

As you say statistics whether made up or not can be used to prove any point you want to make.

I think we could dramatically reduce the death rate in hospitals by removing all beds and making patients stand up. This is because statistics say (not made up) that 98.7% of people die in bed.

 

[LION63]

Of course you can make money with £200 - 300 capital, it will just be relative to what you start with. There is no need to get wiped out by 2 trades going wrong if you have reasonable stops as you seem to have indicated.

Deal4Free require a margin of 50 points for the FTSE100; 40 points for the DAX and 30 points for the CAC40 so it is quite possible to place trades in these indices and make a reasonable return. Shares are even better as you can trade the likes of Barclays, Prudential, BSkyB for a margin (NTR) of £25 for each £1; a stop of say 25 points means that the total sum committed is £50. A trade in the likes of British Airways, ICI or Logica will only require a margin of about £13.

Based on the amount you have available, you can trade and be successful at it whilst you seek more capital and you will gain vast experience with real money

 

[LevII]

Capital Spreads seem to be well thought of. Their prices are in the main pretty close to the underlying.

Sorry to be tedious - I have posted this image elsewhere! http://www.trade2win.com/boards/showpost.php?p=137061&postcount=879http://www.trade2win.com/boards/showthread.php?p=137163#post137163post137163

D4Free in big red digits. CS platform below.

Look at Alliance & Leicester and then put these people forward as being competitive if you can.

Am I missing something?

LII

 

[Roberto]

Am I missing something?

Depends what you mean by "missing something", I think. It's true that D4F have some very competitive spreads, but the general consensus (both here and in other forums) seems to be that their idea of "customer service" leaves VERY much to be desired. As far as I know, this is one area on which CapitalSpreads absolutely can't be faulted. People have very differing experiences and thus very different opinions, though. I've been spread-betting for 4 years now, and my personal viewpoint is that Finspreads is the one company not to touch with a barge-pole, whereas CS and TradIndex are the best for me to use. But, as somebody once said in their sig-file: that's my opinion - yours will be completely different".

 

[LION63]

There is more to it than just the spreads, hence the reason most traders have more than one spread betting account. Deal4Free have very lousy customer relations and there is always something wrong with their platform, in saying that, they have tight spreads. IG Index have much wider spreads but offer a much wider range of markets and require smaller margins per trade. They all have pros and cons.

 

[Perrington]

We are all still waiting for a spread firm that will offer tight spreads, along with a reliable platform and friendly knowledgeable customer service. Seems like a lot to ask I know....

My advice out of the current firms to use is Capital Spreads. They appear to be the closest to the above. They are friendly, have arguably the second best spread's in the market, the dealing platform has only had 1 major issue that iam aware of, however it could do with being updated. In particular provide more space for monitoring potential trades (you can only monitor about 15 before you need to scroll up and down your list). IG's dealing interface is tremendous, however the spreads are uncompetitive, especially if you are not providing an initial deposit of £5000 or greater. Credit is obtainable, however I suggest to live within your means.... cannot comment on D4F, Cantor are reasonable, however not the best spreads and reliability issues crop up now and then. Tradindex needs some work.

Reliability has got to be the primary concern for the trader, IMO most new spread betters look for the tightest spread which is logical, however all it takes is for one issue with your betting account's platform when your in a live position coupled with a market move that is going against you, and you will soon wish you had never heard about spreadbetting.

 

[Splitlink]

Hi i have just started virtual spread betting on indicies mainly Ftse 100, DOW and NASDAQ and occasionally look at individual stocks.

I am now deciding which company to use.



Any ideas

David

Hi David,

Nothing wrong with starting with small amounts. Remember to forget counting your gains and losses in money. Count the points. Make points and the pounds will take care of themselves.
Finspreads will allow you to trade in pence. Trade at 10p per point and your money will last a long time while you are learning. Increase the stake according to your success.

Remember the saying that 90% of traders lose their money. To avoid that fate trade small to start and get experience.

My opinions on Spreadbetting? I make money trading by holding shares for days. I've tried interday tradiing. My opinion is that that is what the 90% of losing traders are doing. I hope that most of the posters that do it here are good at it. I was not, so left it. Besides, with your small stake you are, probably, having to leave home for work. Day traders have to take opportunities quickly, which means they watch the screen all the time.

What else? Index trading is very dangerous, more so with spreadbetting companies and practically impossible to trade interday because of the spreads.

Good luck. Oh, yes! I have no financial reason for recommending Finspreads. I have an account with them, that's all.

Split

 

[Splitlink]

my personal viewpoint is that Finspreads is the one company not to touch with a barge-pole, whereas CS and TradIndex are the best for me to use. But, as somebody once said in their sig-file: that's my opinion - yours will be completely different".

Hi Roberto,

I've been trading for a long time and, after IG and City Index , went to FS. During the years that I have been there, I have never had to pick up the phone to them. A previous poster said that his spreadbetter was "user friendly". Really! I don't know whether mine is friendly, or not, because I have never had to talk with him, thank God! That's more than I can say for my broker. I'm one of the lucky ones, I suppose, but I I can't see the point in having more than one account.

Regards Split