Four cast

In order to become good at financial spread betting you should keep in mind four fundamental conventions which should see you minimising the loss and accentuating the profit margins, although as you know nothing is a dead cert.

Here we go then, firstly, you must have self control. You must know when to bet and when to cut your losses. In doing so you will start to learn how the market moves and what you can and can’t do within that market.

This leads us to the second convention, learning to forecast correctly. Getting a feel for the market trends takes no money whatsoever and can help you become instinctive in spread trading.

Thirdly you must have an understanding of the strength or weakness of support and resistance levels. What this is in a nutshell is being aware of the share prices’ history and when its price is supported on the drop and those which resist further increase in value. This will show you when you can reasonably predict a price to fall and when you might expect upward movement.

Finally, you must be confident that you can predict the amount of movement in a share price or index. This is different to forecasting whether a share price will fall or rise as you are basically trying to workout how much you can lose or- if you’ve stuck to our principles-win.