Financial Spread Betting - New Way To Trade

By Author: Jamie Hanson
Total Articles: 3534
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Trading is not an easy job, if you don't stick to trading rules of the system you choose. There are chances that you might finally go on losing all your money and quit trading, just like more than 90% of the traders do. Its quite tough to lose money and most of the traders continuously make and lose money and finally give up after a few years. Though, financial spread betting system is a great relieve to the traders who constantly lose money as this system has been proved and practiced to show 160% profit from last 26 years and 1504% profit in last year itself! Here are some guidelines that make financial betting system a perfect and profitable system which helps you earn great profits yearly :

- Forget about bargaining: Usually, people look for bargaining in spread betting system, but there is nothing like bargaining in this system. Always bear in mind, the vital lesson you learn from a perfect trader, that "you get high and sell low", and this is the genuine skill of prosperous traders.
- Never quit too soon: One more effective rule of financial spread betting that you should never exit if the prices touch the ...
... climax or drop too low. Never try to guess as you are likely to lose your returns and thus finally face a breakdown. To be flourishing trader, you must depend on big winner.
- Fundamental and News Related trades are useless: Yes its a fact, only some traders can really earn money this way in long term. The most daunting effect of Fundamental Analysis is that you have no control on risks. Suppose, you think the now is the best period to 'buy', but market drops further, and you feel the best time to 'buy' is this one, but again the market goes on falling, and ultimately, the conclusion may be that it wasn't the correct time to 'buy'. A flourishing trader would predict that he was wrong in just sometime when the market was going down.
- Adhere to spread betting system: This golden rule asks you to stick to spread betting system if you really wish to be a successful trader. Well, you cant say which trade is a losing trade, it may so happen, that that trade may be beneficial for that year. You need not judge about any trade if you use a system like this. Its always better to bear small losses than losing a good profitable opportunity.
- Reduce your losses: Most of the trading systems usually disregard to reduce loses and thus fail. Always remember, your winning trades must always be greater than your losing trades.
- Never invest in a losing trade: Most of the traders often make this mistake that they pour in money in the losing trade as they feel that market has reached the Maximum or the Minimum limits. You cant though judge this and thus lose money.
- Money Management: You should know the limit of the money you are going to trade with. But you never never take a risk of higher than 2% on any trade.

Thus, Financial Spread Betting is the ideal way to trade as this is nothing but to bet according to rise and fall of the share prices with no stock purchase in any way. While, online share dealing services let you manage your individual portfolio at lowest costs. Another option for financial spread betting system is Contract For Difference-CFD. In CFD, both the parties to the contract are willing to pay the amount difference between the closing and the opening prices.

Get to know more about Spread Betting, CFDs and Share Trading and see what's in UK Financial Spread Betting Guide at independentinvestor.co.uk