Newbie Questions

mogz2k

Newbie
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Hi All

I'm thinking of getting involved in spread betting but before I'm ready to take the plunge I am looking to do as much due diligence as possible given the uncertainty and level of risk involved.

So far I have opened at demo account with CMC but haven't placed any trades as I am looking to develop a plan and test it on that platform. Could anyone point me in the right direction in terms of how to develop one? Also, any literature on the subject which you feel maybe of use would be great as well as any other newbie tips and other considerations I need to take into account!

Thanks in advance.
 
Hi there! Well firstly I wish you good luck with your spread betting. You haven't said how much research you've done on spread betting, but you've definitely come to the right forum. There are many people here with a lot of experience in the subject and you should spend as much time as possible reading as many threads as you can here. Not all of them will be relevant to you, but much of the advice/discussions here should be very helpful to you as a new-comer. Please don't be disappointed if your thread does not receive many more responses, as you must appreciate that over the years, quite a few times someone comes along and says something akin to: "hi, I'm new to trading/spread betting etc., please tell me more"

As for a plan, well the best one is the all too clichéd "buy low and sell high". Sorry... I know that doesn't say much. Alas,there is no guaranteed plan to make money on the punter's side, or everyone would be using it. So, you probably won't find anyone who'll respond to this thread, telling you exactly what steps to follow, and next thing you know, you're surrounded by tropical palms.

That being said, the most important skills are discipline, patience and the ability to accept you're wrong before you've lost too much money. Throwing good money after bad is something we've all done during the learning process. Try to avoid endlessly repeating the same mistake. Try writing down your trades and analysing them later, and the reasons why you took the decisions that you did. That way, you may find it easier, with sufficient time, to develop a structure and method which is most suitable for your needs. And as for demo accounts - there's no substitute to gambling with real money.

Again, have a good read of as many threads in this forum as you feel may be relevant and then consider coming back with some more specific questions and your ideas & criteria. Albeit, you might find that much that you have in mind has already been answered if you look hard enough here.

I'd also recommend you open more than one spread betting account, and spread your business according to whichever serves your needs better as margin requirements, spreads etc. all differ between the firms as regards the various instruments on offer. What may seem like minor differences in spreads or margin requirements over time add up to be quite substantial - and quite often the difference between any given person's overall profit or loss. And I won't go into what may happen if you start winning too much with any one particular firm.

A number of newcomers have found Malcolm Pryor's book on spread-betting to be useful. Lastly, I hope at least some of what I've written was useful for you.
 
Yes some good advice by peakoil. Trading all comes down to "RISK MONEY MANAGEMENT". Without it you will not survive in the long run. Also do not forget the stop loss!

Try to get initially involved with a SB that have a lower stake level. Even though £1 doesn't sound that much but it really can turn out to be a lot of money if all things goes wrong (I can asure you they usually do at times). Finspread for example have 10p the first month of trading. SLM have got micro lots and Capitalspread or white label of their have got a lower stake I believe.

Good Luck!
 
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