Understanding the Financial Spread Betting Process
: Spread Betting Opportunities
: About the Editor
To succeed at financial spread betting or indeed, any other form of trading for that matter requires a change of mindset. Those who want the sort of financial rewards that the mastery of trading can bring must treat it as a business and must approach every single spread bet like an important business decision.
This is the only way that I know to win in this game. It is the way I do it, and literally every successful professional trader that I know treats trading strictly as a business. And believe me, I know many guys (and several girls too…in fact the girls tend to make much more on average!) who make more money from trading each year than most people make in an entire lifetime!
Contrary to what many would have you believe, these highly profitable traders are not necessarily geniuses. They are typically average Joe’s who have trained themselves to treat trading the stock markets strictly as a business.
But it’s no good just telling you to approach spread betting like you would a business if I don’t spell out exactly what I mean. Please continue below to get an overview of the key aspects of treating financial spread betting as a business.
So what does the financial spread betting process involve?
There are various stages that make up the entire process. You need to understand each stage in turn in order to have
a sound overall grasp of how to consistently make money in this business.
• Emotional Discipline: before you place a spread bet, you need to first know why you want to enter the trade. While it may be fine for you to put in £1 into the slot machine just for the thrill of the ride, you should not go into financial spread betting with that mindset. At least, not if you hope to make consistent profit from spread betting.
• Opportunity Assessment: you should have a set of well-defined criteria for determining whether there is a profitable opportunity in the markets at any given time. It is simply not good enough to enter a trade simply because of a tip from a friend or because some guy on CNBC or Bloomberg channel says so! By all means, listen to those guys if you must but test the spread betting ideas yourself first. Pass the trade tip through the set of criteria that I provide for you on this site. Then and only then should you place a trade.
• Trade Management: you must know exactly what to do at every stage of the spread bet both when a trade is going your way and making you money and when you find yourself on the wrong side of a move.
• Money Management: even the best traders have losing trades. In fact, they sometimes have losing runs. What most novice spread betters do not really understand is that the key difference between those who end up making substantial amounts of money from financial spread betting and those who simply spread bet their money away is very small! It is simply knowing what is an efficient proportion of the outstanding spread betting capital that should be risked on the next
trade. Most successful professional traders swear that this is the crucial factor. Appropriate money management is the secret key to the money code.
And there you have it!
Every single aspect of trading that you need know in order to
consistently make money from financial spread betting can be classified under one of these four key areas.
In this case, the whole is greater than the sum of the parts. If you learn to master each stage in turn, then you would have acquired perhaps the most significant skill to transform your financial life.
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