LONDON, December 22, 2011 /PRNewswire/ --
Spread betting is becoming an increasingly popular form of trading in the UK. Unlike conventional trading, spread betting offers a number of benefits from small deposits to the potential to profit irrespective of whether the markets are going up or coming down. However, spread betting is not without its risks, so here are three top tips for new traders to help achieve more profitable trades.
When spread betting, it is easy to focus purely on the trade in hand and ignore the need to keep improving skills and knowledge. Here, spread betting provider City Index suggests three things that can be implemented immediately to boost anyone's trading ability.
1 - Test a New Strategy
To counter rapid real-time fluctuations in the market, a disciplined spread betting strategy is an important part of separating emotion and spontaneity from trading. This helps traders to approach the trading platform with a calm, clear head.
Something as simple as a spreadsheet outlining the spread bets placed, costs incurred, closing orders, limit orders and day to day market progression can help to forecast future fluctuations while helping to minimise losses and fulfil expected profits.
It is also important to keep testing and refining strategies to keep trading as effectively as possible. For this reason many new traders start out with free demo accounts while more experienced traders will also user demo accounts as part of their ongoing learning and experimental process.
2 - Follow the News
Being well informed can make all the difference between making a profit and taking a loss. When placing a financial spread bet on a market, traders need to know how the market moves, what affects its movements and if there are any forthcoming announcements which may spark a change in direction.
While profits, losses and acquisitions of leading businesses are often reported in the national papers, there is a wide range of daily market commentary available online, from blogs and forums to financial newspapers and resource websites. Traders should make use of the resources available to continue developing their knowledge and understanding of the markets.
3 - Watch a Spread Betting Webinar
Another way to learn about spread betting is to digest information through webinars. City Index provides online education videos that can be viewed from the office or at home. These typically start at 1pm and run for 45 minutes, making them ideal for lunch time viewing.
As well as scheduled live webinars, there are also a number of recorded spread betting webinars which can be viewed when it is convenient while giving traders the freedom to start, stop, rewind and fast forward at the touch of a button.
An alternative to regular trading, spread betting is becoming increasingly popular in the UK with features such as low deposits, the ability to go short (trade on falling markets) and instant access to over 12,000 markets as well as tax-free* profits.
The accessibility of spread betting makes it alluring to new traders as well as people learning about trading for the first time. However, spread betting is a leveraged product which can result in losses greater than your initial deposit. Ensure you fully understand the risks. Learn more about spread betting at: http://www.cityindex.co.uk/spread-betting/
About City Index
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, City Index transacts in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. They also provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, spread betting. For more information, visit http://www.cityindex.co.uk/.
*Spread betting is exempt from UK stamp duty and UK Capital Gains Tax. Tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.
Three Things You Can Do Right Now to Improve Your Spread Betting
SOURCE City Index