Spread Betting Myth Number Two: Nobody makes any money spread betting

This is the second in a series of articles designed to dispel the myths surrounding spread betting, and that is that nobody makes any money by spread betting.

If that were true, then nobody would be doing it, there would not be so many spread betting companies out there and certainly not the major institutions.  In fact, the spread betting market is growing all the time.

Naturally, there are those who make money and those who lose money, which is the same with anything or there would be no money to go round, but consider these figures.

Approximately 90 percent of people who open a financial spread betting account lose their deposit and close their account within a period as short as three months.  This is predominantly because they open their account, throw their money after anything that seems to be going up or going down and hope they’ll make some money.  Even worse, some of them then throw good money after bad falsely believing that the tide will turn or they start trading the opposite way hoping to earn back their money.

However, consider another interesting figure.  If 90 percent of people are losing their money trading the wrong way then that leaves 10 percent of people trading the opposite way and winning all the money that the 90 percent are losing.  You need to make sure that you are in the 10 percent and not the 90 percent and you do this by ensuring that you have a proper trading strategy in mind and learn your trade before blindly throwing your money away.