How To Spread Bet, Tips From a Millionaire Trader

If you want to learn how to successfully spread bet, you can find a multitude of free initial guides on the web from many successful traders.

One such leading light in the area of Financial Spread Betting / Financial Trading, is self made trading millionaire Vince Stanzione

Click here to save time and go straight to a free initial report on how to successfully spread bet,written by Vince Stanzione, a self made trading millionaire.

Financial spread betting is atax free way to enter and speculate in the markets (all profits are 100% tax-free). One of its main attractions especially for novice traders is that all global markets can be entered with small financial amounts so making a spread bet a strong tool for learning about the markets.

Here are five tips that can help you make bigger profits

1. Beware of Those Dealing Costs

Spread bet brokers charge no commissions but there are costs involved. They will always quote a larger bid-offer gap than on traditional markets. For example, on Platinum futures the bid offer will normally be $0.10 or $569 bid and $569.10 offered. But the spread bet broker might quote around $0.50 or $568.80 at $569.30.

These extra costs do have a dramatic impact on profits over time especially if the tradermakes a lot of short term trades. Discount costs at your own peril because what happens to many short term traders is they make money gross but lose it net when costs are considered . One way to combat this is to reign back on the level of trades you make by selecting the larger probability ones.

2. Use Charting But Keep Your workings Basic

Whether you like with charting and technical analysis is not so important because in excess of 80% of the market does. So if you know that most of market participants are looking at charts you should keep an eye on them, know how your enemy is thinking so to speak!

Things to look out for are when major chart levels are passed such as the 50 or two hundred day moving average as well as price breakouts from significant highs/lows.

The Toptraders tend to try and keep their charting basic. Anyone who own a £Three hundred pound laptop or desktop you can now number crunch with numerous different info. The use of all these indicators has been significantly watered Down over the years. as an alternative, try and focus on the look and style of the chart, does it look a bull/a bear marketetc and are there any significant levels of resistance and/or supportcoming up. If so, watching how the market responds and trades around these levels can give vital clues as to the future direction.

3. Don'T Be Afraid To Use Spread Bets For Keeping Long Term Positions

Today, most people seems to be obsessed with trying to trade every move in the market. But with spread betting because of the higher costs involved in short term trading its often a better tactic to work on trading longer term moves.

Concentrating on the longer term moves can produce a three-fold gain. first, the costs become somewhat irrelevant, second its often easier to findlonger term moves and trends than find all the short term ups and Downs. And thirdly, you don't need to waste time watching the market all the time. You could for example keep a Gold position using spread bets for over a year.

4. Use virtual Accounts When making your first trades

Most if not all of the spread bet firms will offer dummy accounts for novice traders just starting out. Practice accounts are excellent training tools to not only introduce people to spread betting but also how to trade all the different markets as well as how to correctly place orders.

Then after a month or so place a small amount of cash in an account and trade very small positions. As you begin to gain more confidence in your own skills, strengths and weaknesses add more money to the account over time. A lot of cash has been lost by new traders depositing large sums of money and then blowing large portions of it because they did not fully understand the market.

Be clever, look longer term and ease yourself and your trading capital into the markets.

5. Don'T Trade What You Don'T Know Or Fully Understand

You may understand the Dow and how to make money but this doesn't mean you will be able to carry this knowledge and understanding to different markets with altogether different characteristics.

Commodities especiallygrains or softsare a classic example of this. Weather, drought, shortages and other fundamental reasons can drastically alter the price of the markets sometimes within a few minutes or perhaps with the market opening 10% higher or lower the following day. So if you want to trade these types of markets do a little bit of research into what can move them as well as studying historical charts to see just how the price can move if things get wild.

To conclude

Trading is as much about skill as experience, in fact theygo hand in hand. This is why its so vital key to approach the goal of making money in the spread betting world from a position of knowledge and strength. Hopefully this brief article has given you some tips to go on and maximise the level of your trading account.

Click here to get your free initial report on how to successfullyspreadbet,written by Vince Stanzione, a self made trading millionaire.To see another article on this subject click hereHow to Spread Bet Like a Millionaire