LONDON, October 8, 2010 /PRNewswire-FirstCall/ -- Practice makes perfect
Financial spread betting providers such as City Index ( http://www.cityindex.co.uk) offer a comprehensive range of educational resources to help you to maximise your trading potential. Spread betting seminars, webinars and education guides enable you to enhance your financial knowledge, while lower minimum spread bet sizes and spread betting demo accounts let you build up your spread betting confidence gradually.
Look before you leap
Always, always, do your research and set out a clear spread betting strategy covering price objectives, entry points, exit points, prices of related markets, chart analysis, stop losses and limit orders. Then simply stick to it. Trading with a well thought-out spread betting plan is the solution to decisions such as when to cut your losses and when to let your profits run.
Knowledge is power
With such a wide range of spread betting markets ( http://www.cityindex.co.uk/range-of-markets/), from currencies and commodities to shares and sectors, it is important to spread bet on the markets that you know and understand. By the same measure, knowing what is going on in those markets at any given time can prove invaluable for your spread betting. With the advent of mobile trading platforms and iPhone spread betting ( http://www.cityindex.co.uk/trading-platform/iphone-trading-platform.aspx), you can keep up with price movements throughout the day and act on them in real-time.
A penny saved is a penny earned
Ultimately, financial spread betting success is as much about minimising your losses as it is about maximising your profits. Most traders at some point in their spread betting career make at least one losing spread bet; the key is to ensure that your spread betting profits outnumber your losses. With this in mind, put in place stop losses to close losing spread betting positions once they pass your predetermined trigger value.
A fool and his money are easily parted
Remember, spread betting is a leveraged product ( http://www.cityindex.co.uk/spread-betting/what-is-spread-betting.aspx), meaning that it allows you to control a much larger position than your deposit would normally give you in the underlying market. The advantage of this is that your winning spread betting trades can return much greater profits. However, the main risk is that your spread betting losses can be magnified in exactly the same way. If you make a profit, resist the temptation to spread bet again too quickly and give it straight back.
Learn something new about spread betting at http://www.cityindex.co.uk/learn-to-trade/seminars.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