A Few Useful Strategies on Forex Spread Betting
Exchange Money Conversion to Foreign Currency (Photo credit: epSos.de)
Spread betting is nothing but a medium through which forex currencies are traded. This is actually gaining a lot of popularity these days. You would have heard about people willing to quit their full time job to spread bet and become professional traders. But then wait a minute? If you have decided to quit your job and become a full time trade, there are a few things you may need to know before you proceed.
You first need to know about a few strategies applied in forex spread betting before considering it as a full time profession. First of all, do not confuse spread betting with actual trading strategies. Though both are equally important they are two different things.
Few important strategies used in Forex spread betting are as follows,
Stay in control.
This will help you contain the losses. Forex spread betting is done in small amounts in order to maintain a low risk factor. You can bet on small amounts and win large amounts gradually. This is not an instant make money scheme but then if you go by the procedures and strategies you can definitely make money.
Staying in control is very important here. Don’t increase your bets over $1 or £1 until you have at least six to seven thousand dollars or pounds in your account.
Before you start playing it real, practice as much as possible with your demo account. This will not only help you study the market but will also give you a good hold on currency pairing. Work on the charts and price history as well.
Do not bet for the sake of it i.e. without any experience or pre-study.
Be thorough on market fundamentals and charts
As mentioned earlier, a lot of practice and preparation has to be done before you actually start betting. You must know the current status of the market as well as the history. You need to have knowledge about the charts too. This will help in making choices as to whether the price will go higher or lower. Once you make your choice, confirm it with your stats and other indicators. You can go a long way if you are strong on the basic market fundamentals.
Contain your stop losses and limit order
It is important to set your stop losses and limit order or commonly known as the target. You need to stick to them at any cost, do not be greedy or curious to bid more. At times the luck may favor you, but then it is always better to be on a safer side. This is where most of the spread betters lose out.
It is good to have a mentor
It is good to have a mentor though you need not necessarily have one beside you. What you can do is, try and talk to the market experts, take their advice see how you can apply it on your game. You may be able to improvise or else even discuss your strategies to them.
If you are a beginner then you may really need a mentor to guide you, try to find an experienced who loves trading and is ready to teach you. Since an experienced companies will be able to eliminate the unsuccessful strategies and only pass you the successful ones. You don’t have to go through all that what they went through when they started trading.
A lot of them do offer webinars and other tutorials on successful trading strategies look for them and chose the one that suits you the best.
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Category: Forex, Uncategorized
