Set a spread betting money management plan

If you are researching spread betting properly, then you will no doubt have read in many books and courses that having a money management plan for your spread trading is essential although it may not seem so to you at first.

It is generally only professional spread traders who have put much thought into this and beginners tend to be over keen and rush off to start trading, but perhaps this is why they are professional spread traders. So if you want to earn plenty of money using spread betting, then take heed of these notes:

• Money management is essential to avoid wiping out your capital. The smaller your capital, possibly the more important the money management plan

• Consider how much of your capital you will use per trade and stick to it. Many successful spread traders say 0.5 per cent and add to winning trades when they are in the winning position

• Stick to the plan no matter what and write it down

• Start by deciding how much you can safely use; never you money that you may need, only what you can afford to lose

• If you don’t have that kind of money yet, then paper trade or use a virtual spread betting account in the meantime