When you are sure about your spread betting strategies then you can apply them to stocks and shares, currencies, commodities and indices. For all of these markets you can trade on different timescales. If you are lucky enough to be trading for a living then a lot of your trades will be intraday with some lasting a couple of days. Spread betting strategies can be use to trade both weekly and monthly charts.
Why are you spread betting? Are you spread betting to make a profit or are you using spread betting to reduce your risk by hedging. You need to be clear on what your spread betting strategies are as if you have different objects then your trading style should be different.
If your answer for ‘why are you spread betting?if it is for the rush you get from the trade then perhaps spread betting isn’t for you. You shouldn’t trade because you need trade for satisfaction, you need sound spread betting strategies.
A common error that traders have is not planning properly. Put your plan on paper before you enter your trade to ensure that it is formulated correctly. Successful traders are consistent with their approaches to trade so if is recommended that you write down all the specific requirements of your spread betting strategies before you make the trade, even if you need to make a quick decision.
Traders often make errors with the size of trades they put on by misunderstanding the leverage. Make sure you understand the leveraging side and know exactly how much you have at risk per trade.
Are you good at disposing of your losers? Ever heard the phrase ‘run your profits’? Well that is what you should be doing with your spread betting. You need to let your profits runs and cut your losses. For each trade you need to set up stop losses and they should be adhered to religiously. It should never be part of your spread betting strategies to give yourself more leeway when the trade moves against you. Let it hit the stop loss and move onto the next trade. If you wait and be patient there will always be more opportunities available to you.
