LONDON, January 26, 2011 /PRNewswire-FirstCall/ -- Is a trader's individual financial spread betting style a product of nature over nurture, or vice versa? Or is what you learn about spread betting just as important as the traits you were born with? Financial traders have debated these points for decades. Here, financial spread betting provider City Index (http://www.cityindex.co.uk/) looks at some of the key points on both sides.
Nature
Some spread betting experts believe that character traits have a significant part to play in an individual's financial spread betting. For example, female spread bettors tend to outperform their male counterparts on the trading platforms. Sandy Jadeja, Chief Technical Analyst at City Index, suggests that this is due to the more considered approach displayed by women who attend his spread betting seminars. An innately higher level of caution probably does lend itself to more disciplined risk management and market analysis, so there could well be some truth in this theory.
Some experts theorise that female spread betting traders tend to ask for help more than men, who might be too proud to take advantage of the array of spread betting seminars (http://www.cityindex.co.uk/learn-to-trade/) and guides available. Many believe this instinct for self-improvement is partly why women tend to outperform men in financial spread betting.
Nurture
Financial spread betting providers and experts alike recommend you operate a spread betting strategy with the express intention of removing emotion and instinct from your trading. By knowing your entry point, exit point and objective for every spread bet before you place it, there will never be any need to make a spread betting decision in the heat of the moment.
As stated above, there are also a wide range of spread betting seminars and training programmes designed to hone your spread betting skills whatever your level of experience. Topics covered in the workshops include everything from the basics of spread betting to charting and technical analysis.
Strong market analysis (http://www.cityindex.co.uk/range-of-markets/) is an important feature in spread betting. For example, when spread betting on British Airways shares, if you know that a spike in crude oil prices may result in downward pressure on BA shares, you can react quickly and correctly to the relevant news activity. Having a knowledge of how markets move can prove invaluable, and this is obviously something that has to be learnt over time.
Conclusion
So, is financial spread betting more about nature or nurture? As is often the case, the reality lies somewhere in the middle. Who you are and what you know both have a significant part to play in your spread betting development. The most important thing is to find a balance that works for you and maximises your trading potential.
Learn more about spread betting with a free City Index seminar at
http://www.cityindex.co.uk/learn-to-trade/seminars.aspx.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, contracts for differences (CFDs) and, in the UK, spread betting (http://www.cityindex.co.uk/spread-betting/).
We constantly look to widen the range of assets we offer, improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support.
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
SOURCE City Index
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