The right spread betting strategy can make a huge difference to your trading. The market is a ferocious beast and will gobble up the hard earned money of the unprepared quickly.
Give yourself a bit of an edge when trading by making sure you stick to a spread betting strategy. Here’s a quick four-step guide to strategies that can help your spread betting.
1) Costs are king
You may not realise it but there is actually a massive difference between what spread betting firms charge in spreads. If you are a regular trader and executing more than ten trades a day as part of your spread betting strategy you’ll find that you can increase your profits by doing something as simple as switching to a spread betting broker that offers tighter spreads.
Core Spreads are a relatively new broker who focuses entirely on offering the tightest spreads in the business. You can read up on spread betting brokers that offer the tightest spreads here.
2) Don’t over trade
This may sound obvious but if you over trade and you don’t have enough wiggle room in your account to give your positions some breathing space you’ll find that you get stopped out of positions that could have potentially yielded you a nice profit.
If you want a broker that focuses on customer service and has some reasonable margin rates. Spreadex offers a great service and don’t allow clients to over trade. Having said that, if you need breathing space they do offer credit accounts for experienced clients.
3) Get a second opinion on trades
Use third-party data, signals and analysis form firms like Investors Intelligence. They scan the market and measure trend by risk score and around 60 technical indicators. They produce daily reports with trading ideas on all asset classes, but the charting package gives a good indication of whether the trend is bullish or bearish. There is a cost for the service, but if you open a spread betting account you get access to all the data, signals and analysis for free.
4) Be informed of economic and company events
Any trader needs a spread betting strategy that keeps them informed. It’s all very well seeing a chart of trends that you are sure will keep on going. But if you are trading stocks and a company you have a position is due to report results the next day – that chart doesn’t mean a thing.
The same is true if you are trading Forex. If you are scalping FX intra-day and taking short-term positions you don’t want to be doing that over economic figure releases when the market can be exceptionally volatile. IG provides their customers with an economic calendar and also email alerts of events that can potentially move the market. IG Also have a huge amount of sentiment tools and analysis on their website.