Should I spread bet live or paper trade first?

Using a demo account or ‘paper trading’ is an excellent idea, especially for those new to spread betting or spread trading as it is also often referred to as; however, the choice is a personal one.

It is all too easy to read a few references on spread trading and get fixated upon the idea of the life of a professional spread trader, working just a few hours a day and spending the rest of the day on the beach.

Even when you read all the jargon and terminology, when it comes to real life spread trading and placing your first real trades it can be easy to make a mistake and in spread betting, that can be costly.

Using a demo account means you learn to understand how the account works, watch how stop losses work for you and you can test out your trading theories or strategy.  Good money management is essential in spread betting.

When you do decide it is time for you to go live, be sure to limit your leverage and keep your capital. The main disadvantage to paper trading is the psychology, so keep it as real as possible to gain the real benefit from your demo account.