LONDON, November 2, 2010 /PRNewswire-FirstCall/ -- Fundamentally, your financial spread betting strategy is the recipe for your trading. It provides you with a set of guidelines to ensure consistency across every spread bet you make. Sometimes, however, it can be worthwhile to change your recipe slightly. The test may improve the dish or it may not, but - as financial spread betting provider City Index (http://www.cityindex.co.uk ) explains - trying new ideas is the way to refine your spread betting strategy.
Introduction to the spread betting strategy
Emotions such as greed, fear and hope can cloud your judgement and cause you to make irrational decisions. A financial spread betting strategy essentially takes those heat-of-the-moment decisions completely out of your hands, predetermining profit goals, maximum loss allowances, entry/exit points and more. A spread betting demo account ( http://www.cityindex.co.uk/learn-to-trade/demo-account.aspx) represents an ideal place to practice your spread betting plan risk-free.
Refining your spread betting strategy
As your spread betting experience grows, you will see opportunities to reshape your strategy. As your needs change, so does your plan. Consistency is important but do not fear making changes to your spread betting strategy if it is not working for you. You need to make sure that all of the elements strike a balance and work together. For example, if the ideal stop loss position for a spread bet represents a risk higher than one that you wish to take, you need to test potential solutions to the conflict.
Testing and refining your spread betting strategy is a lengthy process that might make you feel like you are going around in circles at times, but a reliable plan will help you trade with a calm, collected head; an invaluable commodity in financial spread betting.
Even the best spread betting traders lose money sometimes, but as long as they maintain a positive edge, they may still come out a winner. So whatever your spread betting strategy, continue to analyse the markets, manage your risk and spread bet with discipline. Remember, financial spread betting success is as much about minimising your losses as it is about maximising your profits.
Learn more about financial trading with a free spread betting seminar. Visit http://www.cityindex.co.uk/learn-to-trade/seminars.aspx for a list of upcoming workshops.
For daily spread betting market commentary from the experts at City Index, visit http://www.cityindex.co.uk/market-analysis/market-commentary.aspx.
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
Spread betting and CFD trading are exempt from UK stamp duty. Spread betting is also exempt from UK Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.
SOURCE City Index
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