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Trading News Top 3 Spread Betting Rules for the Novice
Trading News Top 3 Spread Betting Rules for the Novice
Top 3 Spread Betting Rules for the Novice |
| Written by Trader Hideout Editor | |||
| Monday, 15 December 2008 11:18 | |||
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Now that you’ve discovered spread betting, or spread trading, before you rush off in the excitement to open a financial spread trading account, here are our top three spread betting rules for the novice would-be trader. Rule Number One: Never trade more than you can afford to lose As with all investments, if you are ‘playing’ or trading with money that you cannot afford to lose, then you are a fool. You will get scared and make emotional decisions, which in the world of spread trading could mean you’ll be wiped out quick, so don’t use this month’s mortgage payment. Rule Number Two: Start small The reality of the situation is that there are many beginners who lose their money at the start. This does not have to happen to you. There are virtual trading accounts that you can use to practice with and then once you do have enough confidence to try it for real, the minimum trade with most financial spread trading companies is £1 per point. Rule Number Three: Be clear Be clear and be realistic about what you want. If you want the rush of winning £250 in 5 minutes as a hobby then great but if you want to get rich then remember, it definitely will not be easy although yes, it is possible. Spread trading is not gambling, it is a skill that can be learned with hard work, so read spread betting websites, articles, books and magazines. Practice and learn, but expect to make some losses.
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