Spread Betting Tips and Methods
Spread Betting Trading Centre: Do you use any strategies (for example using news feeds, portfolio hedging, pairs trading)? Bob Smith: I have a stock selection strategy and then decide which method is the best I can invest in it; spread betting is only one option.
Spread Betting Trading Centre: Do you have any tips that would be helpful for others wishing to start spread betting?
Bob Smith: Yes. But they won't take any notice!!!
First, don't think of it as spread betting think of it as spread investing and apply exactly the same criteria to stock selection as you would to your main portfolio.
Second - and most important - DON'T SET YOUR STOPS TOO CLOSE TO THE CURRENT PRICE. If you do, you'll be stopped out too often. Set them below the trend line your basing your decision to invest on. Stocks don't go up in a straight line (I wish!!!) and some of the biggest gains come after a stock has fallen short term, often to near its 200 day MAT.
Spread Betting Trading Centre: What trading tools and software do you use?
Bob Smith: I use ShareScope
Spread Betting Trading Centre: If you could start all over with the knowledge you have now, what would you do different and why?
Bob Smith: Be more disciplined. Never invest in any company which isn't profitable. Only buy stocks which are showing relative strength and have a consistent record of increasing profits and dividends. Never average down.
Spread Betting Trading Centre: What do you think about the market's performance this year?
Bob Smith: Fragile. I don't like the volatility. Some of the daily fluctuations worry me and I'm watching things closely, but I'm still fully invested and think there's still more to come.
Spread Betting Trading Centre: Do you use any other instruments in your trading in addition to spread betting, for example, CFDs, futures and options, straight equities, etc.?
Bob Smith: I have traded options and used CFDs in the past, but the combination of spread betting and equity investment suits my needs
Page 1 - My First Spread Bet
Page 2 - Never Change a Spread Betting Stop Loss Page 3 - My Spread Betting Gains and Losses Page 4 - Spead Betting Tips and Methods
