Stock Market Spread Betting

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Financial Spread Betting

In a few short pages we have covered quite a bit of information. I hope so far that you are still hungry and keen to learn more, and have also realised that it's not really that hard to learn enough about the markets to begin trading. We have covered some important areas, which lead nicely into what were going to talk about now – Financial Spread Betting.

There's been a great deal of negative talk about Financial Spread Betting over the years. Sadly the media and many of the rumours have been blown out of proportion. As a result many people decide not to look at Financial Spread Betting as an option, let alone as a real chance to add to their current income or indeed in some cases replace it 10 times over.

Therefore, I think I should begin with dispelling a few myths that seem to be running around and have heard mentioned hear and there, mainly started by people who know nothing about it and are being incredibly ignorant.

Myths:

Nobody Wins at Financial Spread Betting!

Well if that was the case then nobody would do it and least of all the major institutions. If people weren't making serious money then there wouldn't be a market for it, indeed a market that is growing at an incredible rate. There does have to be winners and losers, else the whole concept wouldn't work. Current estimates show that almost 90% of those that 'Play' (we’re not playing) the Financial Spread Betting markets lose their deposits or close their accounts within 3 months. The fact is that 90% of people getting involved with Financial Spread Betting do so without any real plan. They just blindly throw their money in anything that seems to be going up or down (mostly up) and foolishly believe when they're losing money that the tide will turn so add more money to it, or trade the apposite direction. That in it self is a real losing strategy in my eyes. There are ways to what is called 'Hedge' but don't do it blindly to recoup a loss. Before they know it they have lost their deposit, return to the Pub and complain that it's all a con.

Now this is where it gets interested. Looking at the fact of a high percentile are losing their deposits, we move to the 10% who don't and in fact make all the money the other 90% are losing. Sounds very cutthroat and I suppose there is no other way to call it, it is simply profiting because someone else is losing. You are profiting and you will do (not to forget you will have losing trades too) because you are in the 10% who have a real trading strat-egy and not some toss of the coin investment technique. So take heart in the fact that what you have wisely invested in as regards this Workbook and Trade Focus service will arm you very well so that you can make the educated choices of trade and not do it blindly.

It's Futures & Options

NO! There are similarities, but they are not Futures or Options contracts at all, they are very different things. For instance to invest or trade in Futures and Options you need a great deal of money and know your market well. Some people that have been very suc-cessful with Financial Spread Betting do sometimes move to Futures and Options as there are some things, which are similar. In that they are all highly geared and the power of making money is the leverage, and you can make money when the price is going up or down. That's about it! Futures and Options especially are highly complex and I would dis-courage you from trading in them for a long time yet. Regardless of the amount of money you may have now to begin trading.

I will point out though that Financial Spread Betting prices are usually linked to that of the Future/Option market for that particular stock/Indices. So in effect you are getting the best of both worlds. The potential profitability of Futures & Options but without the huge amount of ready cash required to trade.

Also, because most of the time the Financial Spread Betting bookmaker is linking their prices to the Futures markets - the prices that you see quoted are somewhat out of sync with the actual Index or Stock quote. I will talk about this later, basically don't worry.

You need to wealthy to begin with

Perhaps that was true in the early days, but that is certainly not the case now. You can open an account with as little as a £100 GBP. Now that isn't going to break the bank and of course trading with that amount is neither going to make you wealthy - no matter how well you do? What it will allow you to do is to learn how to trade. That's what I want to show you to begin with. That's why when we get to the point of opening an account, I only want you to open one with the bare minimum and I will show you exactly where you can do that and how.

When you have begun to prove to yourself that you have the techniques and knowledge to learn to trade without the use of Trade Focus, then and only then would I suggest to begin to add to your deposit. Only when however, you have proved to yourself that you can make regular profitable trades. Up until that point, just use the £100 GPB Let's not run be-fore we can walk and by doing so were guaranteeing that were not going to lose the shirt off our backs and stops you from worrying about it too much. Before we even start to trade with REAL money, you would have had a couple of months virtually trading with one of the many virtual account that we have listed and ready for you to join. Don't do that just yet though. Learn the techniques and read the book at least once before you start even virtually trading.

Very few people Spread Trade!

That is rubbish. At present in the UK alone, there are over 50,000 people who have a Fi-nancial Spread Betting account with one of the leading Financial Spread Betting book-makers. Plus, there are more and more Financial Spread Betting companies entering the fray every month. The market is booming. I think it's because of recent events with peo-ple's own investments help in pensions etc. People have realised that the institutions really aren't doing a great job of it and that they can easily empower themselves and do it their own way. Also, there is more and more written about Financial Spread Betting every day, so many of the rumours are starting to dispel. Plus, you name me any other method of making money from Markets when they actually go down as well as up! So slap yourself on the back for taking that first REAL step and learning more about a way that CAN make you wealthy.

If it was that easy why isn't everyone doing it?

The fact of the matter is that quite a few people are doing it; it's just that not many people actually shout about it. Namely for the previous reasons mentioned before. That is why I suggest to you; prove that you can do this first by using a virtual trading account, then move to a small margin with one of the Financial Spread Betting companies I will tell you about later. Only when you have become totally comfortable, confident and making profit-able trades would I even suggest that you start telling anyone about this.

A great deal of you success in this game is your attitude to having winning and losing trades and you will have your fare share of both. The last thing you need is some member of your family or close friends asking you how you're doing, and you say that you have lost a few trades. Their negativity alone will knock your own confidence. So do me a favour, in fact the only one I am going to ask you to do. KEEP YOUR MOUTH SHUT!

When your friends etc. see you driving around in a flash car that you bought for cash, then maybe tell them about it. Don't be surprised however, if even then they don't believe you. Remember, most people only believe that there is one way of making money and that is to have a job that they don’t like and will spend forever complaining about. There are millions of myths surrounding Financial Spread Betting. I've just pointed out the key ones that seem to be branded about these days. Pay little attention to them. Stay fo-cussed on what you need to learn. It's not that hard, it just requires a little bit of thinking and once you grasp it, you will wonder what all the fuss was about.

So what is Financial Spread Betting ?

Financial Spread Betting is a highly geared bet on the future price of a product (can be anything) either going up or down. Simple really. The real money making power lies in the leverage. Lets look at this in more detail:

We believe that the Dow Jones Industrial Average Index (DJIA) is going to go up in the next few days. We have analysed the charts and can see that there are various key pointers that suggest this. So we go to our trading account and look at the DJIA and receive the following quote:

Market Period Sell Buy

DJIA MARCH 7475 7485

Don't worry about the (March) comment just yet. So we think that the price is going to ex-ceed the current quoted price. We therefore trade say £10 on the DJIA going up in the short term. This is known as GOING LONG. You are opening a trade where you expect the value of that trade to increase.

So we have traded £10 per point on the DJIA (March) going up in the short term. The next time we look at the DJIA it has reached 7595 (up 110 points) so we decide to cash in. We are closing a buying position and it is called Sell to Close - because we have already bought, we need to sell to release the equity in the contract. We go to the FB (Financial Bookmakers) Internet site and get a quote of:

Market Period Sell Buy

DJIA MARCH 7595 7605

We Sell to Close that releases the following profit from the trade:

LONG Trade Detail Trade Opened @ Trade Closed @

DJIA 7485 7595

Point Difference 110

Trade per point £10.00 110 x £10.00 £1,100 Profit

Not bad for making a few quick choices. I will talk more in depth about protecting your de-posit by using Stop Loss Orders and ways of locking in profit. I just want to cover the very basics to begin with. Then we can look at using tips and tricks to limit your risk and in-crease your profits.

The next trade we look at is the FTSE100. We have looked at the charts and also feel that there is added strength in the argument that the FTSE100 will fall, from all the other data that we have quickly analysed. So we go to our FB website and get a quote on the FTSE100 as follows:

Market Period Sell Buy

FTSE MARCH 4000 4010

From our judgment we believe that the FTSE100 will fall much lower than the current quote of 4000. So we go SHORT (SELL) the FTSE100 @ £10 per point. We have opened a trade where we expect the value to go down in value.

We wait a few days and the FTSE100 drops even lower. So we go to the FB website and get a new quote on the 'Footsie'. We get quoted the following price:

Market Period Sell Buy

FTSE MARCH 3590 3600

Now this is a key thing to remember. We have opened a contract on selling at 4000 so to close the contract we need to BUY. So we BUY to Close @ 3600.

making you a massive tax free profit of £4000.

SHORT Trade Detail Trade Opened @ Trade Closed @

FTSE100 4000 3600

Point Difference 400

Trade per point £10.00 400x £10.00 £4,000 Profit

We have just covered the very basics of making a simple LONG trade (upward – Bull trade), and the basics of going SHORT (downward Bear trade). To close a Long trade we Sell to Close and to close a Short trade we Buy to Close. Please be aware of using the word sell. It would be natural to assume that when we have traded either Long or Short, to close that trade we sell it. This would seem quite natural to think that way. However, should you trade with your Financial Bookmaker (FB) over the telephone or the Internet, this would lead to a great deal of confusion.

For example say we have opened the previous Short FTSE100 trade prior to calling our FB looking to Close the this trade. We call the FB and get a quote and if we said, "I wish to Sell FTSE100" this wouldn't close your previous position, it would ADD to your previous Short contract. The FB would ask, "What is the size of your trade sir?" and this would cause you even greater confusion. So remember:

When we expect the price to go up, we go LONG and we: SELL TO CLOSE to release any profit.

When we expect the price to fall, we go SHORT and we: BUY TO CLOSE to release any profit.

Contract Periods:

Quaterly:

On all trades that you make you will notice that there are what are called contract periods. These are designated months where the contract will automatically close, and run for 3 month periods and close on the 3rd Friday of the month given in the trade.

Example:

Market Period Sell Buy

FTSE100 March 2005 4500 4520

FTSE100 (March) Sell.... Buy.... High...Low...Bid....etc.

This is what you would expect to see (along with a list of other Indices) when you wish to trade. There all quite self explanatory. Take a look at the screen shot taken from IGIndex one of the brokers that I use.

As you can see we have a list of various Indices, currencies and more to select from. This is just a fraction of what is there. But take note of the contract periods, some are just days only (set at one set date), more about that in moment. Others are for longer periods. Note too how the spread changes from one to the other; for instance the spread on a Daily trade is usually smaller than one for a Quarterly.

The March month is the contract month when this particular trade will expire. The contract months run as follows:

March - June - September - December

The FTSE100 trade above would expire on the 3rd Friday in March. When the trade ex-pires, this means that the trade is automatically closed for you. Depending on the FB and the time of year you can have two contract months appear for the same Indices/Trade etc. Don't be surprised when you see FTSE100 March and FTSE100 June next to each other. It's down to personal choice as to which one you wish to trade, and in the long run makes little to no difference. Except if you traded the June contract your trade would expire later, obviously.

Daily.

There are other options that have always been available, such as daily trades that expire at the end of the day. These tend to have a lower spread (the difference between the mid price and the Sell (bid) and Buy (ask) price). They can be good for trading over a very short time, especially if you expect a certain trade to move quickly within one day. More about the use of what I call ‘bounce’ trading in the techniques section.

Rolling Bets.

A relatively new type of trade, where the trade is closed and re-opened the next day, any profits are calculated from a combination of the current interest rate and the stocks current value at the time of close. More about rolling bets and the uses of later.

Making a trade:

We already know what the Sell and Buy markers are, the High and Low, is the current DAILY high and low of that trade. Therefore, you can quickly see from the quote that you receive how close that is to that day’s lowest or highest price point. Simple really. If you for instance asked for a quote on FTSE100 and got a Sell at 4000 and a buy at 4010, the daily high was 4014 and the daily low 4890. It would make sense to go SHORT as the obvious trend, without looking at any chart is down. A word of warning though, this is just one of the many criteria that you should use. Don't use this as a primary trading strategy. Many people sadly do and end up losing a great deal, as the markets can swing quickly and the Low of that day may have been a blip caused by some news that morning.

The Bid is the amount that you wish to trade per point. For example if you entered £10, you would be trading £10 per point that contract goes up or down. When you have en-tered the amount you wish to trade, you usually then press TRADE which will connect you with your FB live who will give you a price. Now you have to act quickly here. So you MUST know which direction you want to trade. Sell (SHORT) or Buy (LONG) - the quote for each will appear on your screen for only a few seconds, as the markets move so quickly. Make you choice, you will than receive an on screen contract number that will also appear on your Statement sent by post or e-mail.

When you call your Financial Bookmaker, don't expect any long winded courtesy. Don't take it personally, they're not horrible people at all. They are incredibly busy people and have to supply you with a quote as quick as possible. The usual conversation for a trade made over the phone is as follows:

FB - "Hello FB, can I take you account number?"

You - "Hello, yes its wrx1234"

FB - "Mr Jones, what can I quote you for?"

You - "FTSE100, please!"

FB - "FTSE100 is 4400/4410"

You - "I will go Long on the FTSE100 @ £10 per point"

FB - "Thank you Mr Jones - you have gone LONG on the FTSE100 March @ 4410 - £10 per point trade! Is there anything else?"

You - "No thank you. Goodbye"

And that’s that. Two points I must mention. NEVER tell the FB when you ask for a quote which direction you wants the quote e.g.: "FTSE100 Short please" just ask for the FTSE100. Secondly, if you don't wish to make a trade after receiving the quote just simply say "Nothing Done". Communication over the phone can be risky and when it's as serious as this, it has to be made clear so each party understands. It's not being rude at all, you are just doing business. So don't take it personally when the Financial Bookmakers (FB) are being to the point and what may seem rude. They are just doing their job as quickly and as effective as they can.

Another thing I must point out is that they present the Sell and Buy as two numbers. They rarely say "Sell is...." etc. They simply state "FTSE100 4400/4410" you should read these as the first number being the SELL and the second being the BUY. This is standard prac-tice and if you're not sure what they said ask them to repeat, however the second time around it maybe a different number as the markets do move very quickly.

You now know how to place a basic LONG & SHORT trade using the FB's website or over the telephone. May sound complicated at first but after a few times practicing it will be-come second nature to you.

Risk Exposure & Money Management

Now that we know the trading basics, we need to address the key issue of Risk Exposure. Simply what Risk Exposure is, is the amount of your margin/deposit that you are prepared to Risk. The FB's give you various tools that allow you to limit your losses and lock in your gains (profits). The main ones are listed below along with their use.

STOP LOSS

A stop loss does exactly what it says. It’s a price point where you want to signal a close on the trade. For instance lets say that we have opened a LONG trade on the FTSE100 (March) @ 4000 at £10 per point. Now we don't want to risk too much and we know that the FTSE isn't highly volatile, so we place the Stop Loss at 3950. Which would mean we would be Risking a max. of £500.

Before you start panicking and shouting at the monitor saying you don't have that kind of money. I am just using the £10 trade as an example. It can be anything from 1p to £500 per point, depending on your financial position.

What happens now with the Stop Loss is should the price fall to 3950 you would be what is called “Stopped Out” and the trade is closed for you. You are not given any warning, it is up to you to watch the market and decide to leave the Stop Loss in place or reduce your exposure amount e.g.: increasing the number from 3950.

Very few people actually use “Stop Losses” properly. Here is how some people use “Stop Losses” and wonder why they keep getting “Stopped Out” all the time. They place their trade and put a stop just a few points below their opening price. The trade amount they opened is quite high and therefore risks a considerable amount of their margin on deposit with the FB. Therefore to reduce their Risk Exposure, they have a limited Stop Loss. This is a common and tragic mistake, regardless of the market that is being traded.

Markets fluctuate all the time. They don't stay static and go up or down. Even none volatile Indices such as the FTSE fluctuate. What happens when you place a Stop Loss too close to your initial opening price is that you will get “Stopped Out” very quickly, and lose money as a result. This is what is known as 'Death by 1000 Stops' as what usually happens is the trade is reopened and the same shallow Stop Loss placed again, to which in a few hours the trader has lost by being “Stopped Out”.

The sensible method is to first look at the chart for the previous week and check to see how much it fluctuates - my rule of thumb if I am unsure is to look at a Daily chart broken down into 15 minutes intervals for a day, followed by a broader hourly chart covering 1 week. Were not looking at the massive trends just the general movement of the stock. By analyzing (we will go into this more in depth later) the chart we can then see where our stops should be placed, relative to the trade we opened. The other thing is if your trade is a high trade e.g.: £10 and you can't afford to go beyond 50 point Stop Loss, then simply reduce your trade. It's much better to have a more flexible Stop Loss and a lower trade, than a high trade and a small Stop Loss.

Remember, if you are unsure as to how volatile the market is your trading. First look at an 15 minutes chart that covers first of all a day, then an hourly chart that covers the week. This way you can spot the basic validity and where to place your Stop Loss. Most charting packages and online charts allow you to draw lines that allow you to gauge where the highs and lows of basic validity.

Since first writing this workbook the FSA in the UK have advised that many bookmakers automatically place a stop loss when you open a trade. This has some advantages, in that should you forget to put in a stop, you are automatically protected. However, with these types of accounts, sometime there is little flexibility in moving the stop loss.

For example on some UK trades the point movement isn’t as wide as it is with some US trades. However, to lock in profit with UK trades on an account where the stop is auto-matically added, you have to wait until the stock has moved a considerable amount before you can move your stop in and lock in profit.

It is worth looking around the financial bookmakers that are available, as there are many of them now. More so than when I first started writing this workbook a couple of years ago. Maybe it’s because there is never such a thing as a pour bookmaker. This does make things better for everyone, in that as the market is really started to mature, more and more products become available for us to trade and the more means we have to profit. Plus with the added competition of all the other bookmakers around, we get lower spreads. So, look around before opening an account. Ideally you don’t want an account that has very little flexibility in moving the stops and has large spreads.

For instance, some of the lower end spread betting companies that allow you to trade pennies rather than pounds to begin with – these are the ones that are focusing on the be-ginner – so be careful, have very large spreads. Remember the spread costs you money.

Locking In Profit - with a Stop Loss!

Sadly this is a technique that few traders use. Not exactly sure why, but there maybe a misconception that once a Stop Loss is made it can't be changed. Which is nonsense and one of the key areas of locking in profit in a trade. What does locking in profit mean? Lets say we have the same trade as before, but instead the market goes in our favour past our original opening price and because it was a LONG trade we are now in a profit position.

All we do is either call the FB or even better go to the website and change the Stop Loss so that the stop is actually higher (because we went long) then our opening price. This therefore guarantees the profit we have locked into that point.

Opened at 4000 Long on the FTSE100 @ £10 Trade. We set the first SL at 3950. Our risk is £500. The FTSE100 goes up to 4100 in a couple of days. We have been wise and have gradually throughout this time increased the SL from 3950 to 4050, locking in a £500 profit.

You can use the same principle for going SHORT also. You just have to think in reverse. You set your stop HIGHER than your opening price and lock in your profit (when its there) by going lower than your opening trade price.

Locking in profit is paramount to your money management when Financial Spread Betting. Always look for chances to lock in profit, it is one of your keys to success in Financial Spread Betting.

We have covered the Stop Loss, but one of the things you must be aware using a Stop Loss is the following:

The markets move incredibly quickly and if there is a rush on any share, or indices or what ever it is, sometimes a panic is started. This panic good or bad can send your trade soar-ing upward or plummeting downwards. Using a stop loss will protect you to some degree when the market is flighty. Lets say we have traded the FTSE100 and for some obscure reason the market crashes badly - a rare thing for an Indices to crash but not that uncom-mon should you say be trading in highly volatile trades in Tech Stocks etc. That can plummet or soar very quickly indeed. For this example though, we will be using the FTSE100 as that is our 'de facto' trade for this course.

So we opened a trade on the FTSE100 at 4000 going LONG @ £10 per point. Something terrible happens which results in the FTSE crashing and within minutes it starts to plum-met.

Of course we were sensible and when we opened the trade on the FTSE we also put in place a SL order at 3950. Now the SL will kick in as soon as it can, but and this something you should take note of, you are not guarantee that your trade will be closed at 3950. Normally they are traded close to that amount give or take a few points, simply because the market has moved and it takes a few minutes for the system to acknowledge the SL - believe me a few minutes is as quick as we could ever hope. However, if like in our exam-ple the trade is falling like a stone by tens of points a second, by the time our SL has been actioned (at 3950) but confirmed (39??) the trade could have dropped much, much further. Resulting in an even greater loss of what we had first expected. Which would be our ex-pected loss of £500 plus what ever amount the trade had fallen between the few minutes it takes to acknowledge the closing order.

I am not saying this to freak you out, or to worry you in any way. I have never had any bad surprises like the above. Of course I have had a SL actioned and lost a few extra pounds than I had hoped, but nothing to warrant panic of any kind.

I have given you the above example so that you know what can or could happen if there was a massive swing in the trade. Don't get too preoccupied with the above though as most trades will close very near your stop loss, and if you stick to the more secure trades (any FTSE/Dow Stock or Indices) you wont have to worry too much. If on the other hand, you decide to venture into the more volatile and potentially higher reward areas of Finan-cial Spread Betting (Tech Stocks etc.) then I would strongly suggest you use the following order on all your 'high risk' trades.

But always be mindful of moving in the stop too close to the current market value of that trade. This can get you stopped out very quickly indeed. Look at the 15 minute data of that stock over 1 day, the chart you should use for this is not the charting package that you have bought, the Trade Focus charting package – no! You should use the FB’s own chart for this. It shows you the data they are using. Look using Candlesticks (more about those later), and you will see where the stock is bursting up or down. You should aim to be out-side of these limits over that day on your stop loss to protect yourself from being stopped out. It’s best to use this technique when moving your stop and will limit the amount of times that you do get stopped out.

GUARANTEED STOP LOSS

The Guaranteed Stop Loss (GSL) works just like a SL order, the biggest and only differ-ence is the price that you request the trade to be closed at, IS the price you will be guaran-tee it will be stopped at. The price for using a GSL is usually several points extra spread on the trade and therefore and increased cost to your for executing the opening trade. In a nutshell, it costs you more money!

With normal SL closing orders we pay for opening a trade with a spread (difference be-tween the mid-price and opening price), this is where the Financial Bookmaker makes their money – it’s a common miss conception that the bookmaker makes their money from those that lose. In fact the bookmaker in this case makes their money from the spread and it’s the money from those that lose that pays those that win. I have been asked many times in the past, if a bookmaker could close your account if you get too good. The simple answer is they would be stupid to do this. As the better you get at making trades and the more successful you become the larger trades you will make and the more you will make them. Therefore, more profit for the bookmaker.

The spread is no different if you open a trade with or without a standard SL closing order. However, should you decide to use the above GSL closing order, the spread will be much larger, PLUS you usually have to pay an additional few points on top of the trade too, much like an insurance payment. So you do pay quite a bit more for your trades using a GSL, but they will save you a fortune should things not go in your favour.

To be honest, I rarely use a GSL, simply because I rarely trade in highly volatile areas. Even when I do, I tend to know the market a little before I go in so know what to expect to a degree. However, for you I would recommend that if you decide to venture into volatile markets - ALWAYS use a GSL. It will save you much more than it costs in the long run. Remember, out of 10 trades we can realistically only expect to make a real profit on 4. The other 6 we can expect to be losing trades. Therefore if we are not clever with our money management and go for volatile stocks & markets without using a GSL, the losing trades will eat into the profit made from the profitable trades and possibly into our de-posit/margin.

At the end of the day it is your choice how you trade and whether you use a standard trade on a 3 month contract or a dalily with a GSL. I have a friend who has traded for many years and only uses GSL. But by the same token he is a very careful trader and doesn’t like risk much at all.

We want to keep the risk down to a bare minimum. Which means making choices based on our ability to read charts and some fundamental data, then making wise opening trades and being clever by using SLs, GSLs and locking in profit as and when we can. PLUS making sure the losing trades we have, lose little and make no significant impact on our overall profitability.

To recap then; use a standard Stop Loss (SL) closing order on less volatile markets & stocks (FTSE/DOW), Do NOT set your SL order too close to your opening one, else you will get “Stopped Out” and lose money, LOCK IN profit as soon as you can by moving your SL order in the direction that locks in profit (depending on whether you have gone LONG or SHORT), and finally USE a Guaranteed Stop Loss (GSL) when trading in highly volatile markets etc. (Tech Stocks).

Finally on Stop orders. Don't use a GSL as an insurance on a trade that you are uncertain about. If you are uncertain, simply DO NOT MAKE THAT TRADE.

The tools that we are provided with by Financial Bookmakers, although very simple ARE very powerful and KEY to your success in Financial Spread Betting. Use them and use them wisely. Abuse or forget them and you will fail, like the 90% of the mug traders who blindly trade and have no money management.

We have come quite a long way in a relative short period of time. Don't worry too much if none of it is properly sinking in yet. Understand that I was in the same position as you are now, but once I got my head around the fact that what I was learning to do was/is rela-tively easy. Remember, read the Workbook a couple of times, and do a few examples of your own, try your best to work out any problems yourself. You can of course email me with any concerns or problems that you may have. I am here to help you as much as I can.

You should now know what Financial Spread Betting is and the basics of opening and closing a trade, in addition to the main tools that the Financial Bookmakers (FB) provide you with to limit losses and lock in profit. We have also made a realisation that the biggest mistake that most make is the incorrect use or lack of use of the tools that are given to us by the FB's.

Now don't go and think you can start trading just yet, or that is all were going to cover. What I have covered so far you could have easily learnt anywhere to be honest. In fact there are plenty of books and courses that just talk about what I have gone through with you. What they tend to do though, is add a ton of padding to make the £20 that you have paid for the book, or the £200 for the course seem good value - when all you would have probably learnt is what I have told you in about past pages. Thankfully, you are wiser with your choices than most.

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Comments 4 comments

Jen 8 years ago

Great, really intersting articles and finding them useful and informative. Let's have some more!


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stuwhisson 8 years ago from London Author

Don't forget to read the first part of our course by clicking the above link.


Andy 6 years ago

that's a good introduction on the spread betting subject on which I've also written exhaustively at http://www.financial-spread-betting.com/


Andy 6 years ago

Good introduction there is much more here http://www.financial-spread-betting.com/Spread-tra...

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