In order to stay in profit where you are spread betting you could do worst then to follow some basic guidelines designed to help you win more consistently. A sure fire system is not bullet proof and will from time to time let you down, causing you to doubt the validity in the system itself.
A good spread betting strategy should always involve a plan. Reckless betting will only cause losses in the medium to long term and the most successful winners at spread betting always stay focused, disciplined and stick to their own plan no matter how days of losses they incur because they know their plan has proven to work over the course of months and even years.
Betting strategies change, but not that much – and it can become tempting even for the most experienced spread bettor to change tack and follow the latest trend. A good tip for beginners is to make your trading as basic and less complicated as you can. Surrounding yourself with data, tips and spreadsheets is one of the quickest ways to self combust and you could risk your entire portfolio in a very short time.
Specialise in limited markets – Don’t become the jack of all trades, instead be the master of one. Take your time and study one area of spread betting whether that be the foreign exchange markets or bonds. Then study, study and study more…after a while you will understand much better what affects prices going up and down and your predictions will be more accurate.
Winners know when to stop even when they lose. A stop-loss is not recommended it’s a must, fact. Knowing when to bail on a market is the hardest skill to learn but probably the most important, do not go over 20% of your initial entry point and stick to this, even better would be 10% but that involves a strict regime of not waiting to see of the prices to back up.
Never go all in on your bets. It’s tempting sometimes to chase losses by dumping what’s left in your account into a hot tip or because you feel the winds are about to change in your favour.
Most spread betting experts recommend not going over 1.5 per cent of your overall betting pot.
Keeping track of trading – is crucial and some people like to use software to log their betting or use Excel if you prefer to do this by hand. Write down everything including gut feelings, losses, wins and what you think made the price g up or down on a particular market.
Then, every few weeks review your strategy based on facts you have logged, never plan spread betting strategies on a whim use real data that yourself have collated.