Whether you’ve been in spread betting for a while or are a seasoned veteran, there are always some tricks that can improve your game.
Once you get into it, spread betting is relatively straightforward, but you need to have that edge to do well with it.
Let’s explore some ways you can boost your play.
But First, for Beginners: What Is Spread Betting?
Spread betting is a tax-free way to do financial trading and investing. It has become prevalent in the UK in recent years. As it falls into the same category as gambling, betters will not be liable to pay any capital gains taxes. You don’t have to pay tax on any of your spread betting profits.
You’ll need a trustworthy broker to help set you up with your spread betting platform to start trading. Once set up, you can spread bets on a variety of industries. You can bet on commodities, shares, Forex and stock market indexes, precious metals, and more.
1. Know Your Spread Betting Platform Inside Out
When it comes to spread betting, using the right platform and knowing it intimately is the key. Once you have chosen the best spread betting platform in the UK, spend some time sussing it out.
Even if you have been using a platform for a while, exploring its less apparent features and specifications is highly beneficial. The better you know the platform, the more profit you stand to make.
2. Research Your Market and Work Out Your Strategy
Many traders struggle to gain when spread betting as they aren’t sure what they are doing. It’s always best to research your market carefully and develop an effective strategy. Be sure to do this before you begin trading with actual cash if you’re a novice.
For example, if you’re keen to trade in shares and stocks, then put in the time to learn about how the stock exchange works. It will help you save and even make money rather than lose it.
Once you know your market and your platform well, you can start to put together a spread betting strategy. Being very clear on your strategy will also help you do well. It will help you know when to act and when not to. It’s best to trade on consistently profitable patterns rather than going for irregular items.
A great way to benefit is to strike during the ‘breakout pattern’. This is when a stock’s price ‘breaks out’ of a prior range. Purchasing at this juncture can yield pleasing profits.
3. Make Use of Trends
If you’re not usually one to follow the crowd, spread betting is one area to change that approach. Trading the trend is always a good choice. With more bets leveraged, your profits and losses magnify. By trading on-trend, you’re taking advantage of an opportunity when it arises. Going with the flow is always better than trying to paddle upstream.
It doesn’t typically make sense to bet on the off-chance that a betting price will change direction. So, whether you’re trading on a daily or one-minute timeframe, always enter the trade by following the current trend.
It can also mean running your winners as part of your working on-trend strategy. This means not selling your trades too early. Doing so can lead to more significant wins longer term.
4. Be Disciplined
Like with anything, being consistent pays off. By keeping to your proven strategies, you can continue to grow your spread bet account. This disciplined approach is a better strategy than constantly recouping from taking ill-conceived risks.
5. Analyse Results and Improve
The best way to move forward is to track your wins and losses. This way, you can repeat the strategies that worked and avoid or adjust the ones that didn’t. Review your trading journal or analyse your trading to figure out the best ways to improve.
Spread betting can be fun and very lucrative. If you employ these helpful tips, you’re sure to improve your trading strategies. Enjoy the journey!