12 Tips For Improving Your Spread Betting – Trader’s Guide
June 18, 2010 11:14 am
Forget Aim shares – the buy/sell spread is too big usually and will gobble up any profits…perhaps better stick to FTSE 100 companies. Get a cheap online broker (should be less than £12.50 a trade) or use IG Index or Capital Spreads spread betting. Avoid trading/holding when it’s company result’s day, as it is a pure gamble and the shares can move +- 10%. Don’t try and go long on a share which is falling fast, hoping for a reversal…it usually doesn’t work. Don’t try and go short on a share which is rising fast, hoping for a reversal…it usually doesn’t work. Trade with the trend…I always try and trade in the direction of the Bianca blue 50 day trend channel. Perhaps try and buy when the share has fallen back for a couple of days when the 50 day trend is up. Ignore any hype on forums…when *everyone* is positive it can be dangerous. Try and trade over a few days or couple of weeks, if you “day trade” you will probably find you lose money. Shares go up and down…don’t get shaken out if the share price goes against you. Set a strict level at which you will cut your losses…if it goes wrong big time, best to get out and preserve your capital. Try and run your profits and cut your losses…human nature tends to do the opposite. Diversify your portfolio… never hold all banks or all oil shares for example.
Forget Aim shares – the buy/sell spread is too big usually and will gobble up any profits…perhaps better stick to FTSE 100 companies.
Get a cheap online broker (should be less than £12.50 a trade) or use IG Index or Capital Spreads spread betting.
Avoid trading/holding when it’s company result’s day, as it is a pure gamble and the shares can move +- 10%.
Don’t try and go long on a share which is falling fast, hoping for a reversal…it usually doesn’t work.
Don’t try and go short on a share which is rising fast, hoping for a reversal…it usually doesn’t work.
Trade with the trend…I always try and trade in the direction of the Bianca blue 50 day trend channel.
Perhaps try and buy when the share has fallen back for a couple of days when the 50 day trend is up.
Ignore any hype on forums…when *everyone* is positive it can be dangerous.
Try and trade over a few days or couple of weeks, if you “day trade” you will probably find you lose money.
Shares go up and down…don’t get shaken out if the share price goes against you.
Set a strict level at which you will cut your losses…if it goes wrong big time, best to get out and preserve your capital.
Try and run your profits and cut your losses…human nature tends to do the opposite.
Diversify your portfolio… never hold all banks or all oil shares for example.
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