Rule of thumb

It cannot be stressed enough when considering spread betting that by covering yourself against every eventuality you will come out of your experience with minimal hardship. It is all too easy to think that you will earn enough money to be able to retire, however if you can afford to play with that amount of money then maybe you will see an early retirement.

Of course, as mentioned in previous articles, your winnings are all tax free and this is more than an incentive for some people but unless you know what you’re doing, what is the real point in playing the game?

You should always remember to treat your spread betting in a serious manner, it’s your money and you want to win not lose, therefore always do your homework and bet on subjects that you have knowledge about and have studied.

When placing your bets, do so with your head, not with your heart as sentiment is no real basis for wagering your hard earned cash. Keeping a record of your betting history is also beneficial as you will be able to read at your leisure and learn from mistakes you may have made. There are millions of pounds to be made when participating in spread betting but it is not a ‘get rich quick’ scheme, therefore, start small, earning a small profit is better than no profit and it is most definitely better than losing money.

When you are lucky enough, cash in your winnings, it’s always best not to put them back onto another bet, enjoy them instead of risking them and never chase your losses – you will only end up penniless.