Spread Betting Tips and Techniques
Being prepared and well researched before you attack the markets is critical for anyone who is serious about succeeding in spread betting long term. It's no secret, but yet still too many traders hit the markets with financial spread betting positions before being sufficiently well read in how the markets work and the techniques and steps to successful trading. We've put together a few key tips for spread betting traders who want to make sure they're always at their most prepared, ready to trade dynamically and profitably to make the most of their capital.
Tips and Techniques
The Don'ts of Spread Betting
Top Trading Techniques and Tips
Read the news throughout the day
Reading the news is one thing, but keeping up to date with developments and current affairs as they change and progress throughout the trading day will help prepare you more thoroughly for sudden market shifts, and can provide you with vital knowledge to identify potential opportunities before they arise. In order to compete in the markets, you should aim to compete on knowledge, and there's simply no excuse for a lack of preparation - by keeping a constant eye on the world and market news, you stand a better chance of finding and exploiting new, lucrative opportunities.
Read analysis from different perspectives for balance
Political and economic analysis is seldom conducted with true independence and a lack of bias. The judgement of commentators is always skewed by one factor or other, and it's important from the point of view of balance that you read and research a wide cross-section of opinion. The more perspectives you hear, the more likely you are to be informed about particular events, markets or opportunities, and more strategically poised to take advantage as a result.
Plan for key events in your market
Key economic and market events like profit announcements, interest rate decisions and GDP figures all have a significant bearing on the financial markets, and can send the markets into a spin depending on how these announcements tally with analysts forecasts. While these powerful announcements can heavily influence markets and shape the way traders engage, they seldom come out of the below. Make sure you calendarise everything you can find that might be relevant to your markets, and pay attention to what commentators and other traders are saying in the run up to them. This will give you the best advanced notice of how the markets might respond, so you can plan to be on the right side of the market when the news breaks.
Study price data alongside macroeconomic prompts
Macroeconomic price prompts and current affairs that relate to markets and trader confidence are all powerful indicators of movement. Yet it would be unwise to consider price factors to the exclusion of macroeconomic factors and vice versa. In order to achieve the whole picture and be as informed as you can be, it's vital to be knowledgeable on both the market and the macro front - i.e. know your price points, know your strategy and know what's going on in the world around you that might influence your trading calls.
Trading research and preparation takes up time, but it should never feel like a chore. Getting up to speed on the markets and the various happenings will make or break your success eventually, so it is critical that you pay sufficient attention to this precursory planning phase as an important part of making the most of your trading. By immersing yourself as widely as possible in market chatter, opinion and resources, you stand the best chance of being well prepared to leverage any opportunity.