Everyone wants to make quick money spread betting, but is it really possible? Is it possible to make money fast spread betting? For one thing you see so many promises about the possible returns from trading, it’s sometimes hard to distinguish the real from the hype. These days it seems that so many people want to become traders, and I’ve noted that there has been a sharp increase of attendees at trading seminars and the numerous trading websites that have popped up, promising rags-to-riches programs selling secret trading strategies. The truth is that spread betting is one of the best ways of making a decent amount of money out of the financial markets because of the leverage that you can get. If you correctly pick the market direction then you can quickly earn a large amount of money.
Conversely, if you make the wrong decisions, you will find that your investment can quickly disappear. Indeed it is possible to loss in excess of your initial investment and therefore you should think carefully about your trading plan. The truth is that there is no easy way to make money from trading the markets and this is a mistake that most novices make. As Angus Campbell of Capital Spreads points out many beginners tend to have unrealistic aspirations and believe that all they have to do is place a few £20 bets and they’ll spend the rest of their lives trading via a laptop from a beach in the sun in some Caribbean island.
The lesson from Free Capital is that each investor does their own thing. We each find a way of investing or trading which we are comfortable with. There is no one way to make money and there is no one way to lose money. I wouldn’t bother about who they are as there are hundreds of people that have made serious money. Even within a group of traders you will find a vast difference in the way each of us trade. What Free Capital doesn’t tell you is how much each investor started with and at what point in the market cycle they started – starting in 2003 would have been much easier than starting in 2007. To make £1m would be much easier if you started with £500k rather than £50k.
“Treat your trading venture as a business. Too many speculators view it as a get rich quick scheme and their unrealistic expectations can lead them to take on large positions more often than not leading to disastrous consequences. Highly-trained and experienced fund managers are very happy when they manage 10% per year; why would you expect to double your money in your first few months after starting out?”
“My experience over many years has proven to me that the ‘quick quid’ investment strategy more often than not leads to the loss of the said quid…stay clear of schemes that promise the world. Someone is always on the other side of the trade and determined to bring you down”
Let’s face the harsh truth – trading is tough and you’re not going to become an expert or become a millionaire overnight. Making money spreadbetting entails a lot more than predicting which way the FTSE is heading or trying to figure out which stock or commodity will double over the next year or two. Indeed, trading is not so much about knowing where the market is going but much more about money and risk management. Of course, if you are looking for quick money, you need to concentrate on volatile markets, where the price changes are rapid and dramatic. Once the trade is initiated, it is critical to control your emotions. This also means that you have to be ready to trade quickly and get on board a trend as early as possible and also get out of positions as the market dictates using absolute risk and money management.
The Spread Betting Cash Guide
You need to develop skills to be able to spread bet reliably, particularly in a fast-moving market. You also need to have a suitable trading style and apply sensible risk-reward factors. Technical analysis is a very valuable foundation from which to trade, and is much more relevant than looking at fundamentals of the companies and investments. In the short term, technical analysis allows you to infer the fluctuations, whereas fundamentals can only tell you where prices should be, and where they may be in the long-term once other traders realize what you have found out.
To make quick money spread betting you also need to have a clear plan of action. All successful traders have defined plans for how they trade, and most have them written down. Shooting from the hip is a recipe for disaster, and at best can only give you unrepeatable results. You need to achieve consistency in order to stay in the game.
Your trading plan has to be clear and unambiguous, and preferably straightforward so that it can be applied easily. Many trading plans are trend following, on the basis that this is the least risky strategy. The skill to reliably identify the exact top or bottom of a price movement is one that does not exist, and trying to do so is likely to result in failure.
There are various ways, including simple observation of the charts, to determine where a trend exists. Analytical tools will indicate the strength of a trend, and whether it is weakening. Simply bet on the trend to continue while it is showing strength, and be sure to exit once there is evidence of weakness.
While trend following gives you greater scope for profit, more than half the time the market is going sideways, and as a frequent spread better you can snatch profits both up and down as the price oscillates in a range between support and resistance levels.
This is a riskier strategy, and you have to watch out for a price break out, but frequently you can trade up and down many times before the price moves on. Technical analysis will allow you to identify strong support and resistance levels which can be expected to withstand the price movements many times before being breached.
It’s certainly possible to make quick money spread betting, and provided you understand the basics of the market movements and stay on top of the technical indicators, you improve your chances of success. Becoming a better and more profitable trader is much easier when you take the right approach as regards investing in your trading education and bankroll. Newcomers should expect an exciting journey where the rewards can be fantastic, but they should be prepared to
put in some hard work.
There are many financial spread betting tips to learn before going for the real money bets, take it a the first tip 😉