Spread Betting Lessons from Successful Traders
I am in the fortunate situation of being in contact with a number of really successful stock market traders who use financial spread betting as their main trading vehicle. We are talking about those that are consistently taking several tens of thousands pounds per week out of the markets and also those spreadbettors who in the past, made substantial sums from trading.
First of all I’m still in this game only because I’m still making money. My network of traders are a fair change of being in the 10-20% of non-losers. We have all read some books on the subject of trading. We are also keen to learn from each other and some of us have many years of experience to pass on. I would hope we mostly accept that it’s not easy-life, loads-a-money. I believe so many start trading in the belief that they will have fantastic riches with very little effort. Sadly they will definitely be in the 80% that lose and give up.
At this stage I would like to pass on a few tips…
Reading is one thing. Putting into practice the techniques you learn is another
Reading a book about trading psychology and technical analysis is one thing. Thoroughly understanding all of it and remembering all of it as if by second nature is something else. Imo its hard graft getting into the 20% of consistent winners but not out of the question.
Be Patient
I regard patience as the key ingredient in my trading strategy, it stops me rushing in to things which in current market conditions helps me.
Run Winners
This is definitely a great way to make a substantial different to your profits. I still sometimes fail to let my winners keep running when things start flying
Document your Trades
Putting down into writing your trades and why you chose to enter the market helps you stop repeating mistakes.
Don’t think you can Master Trading from the Start
I find it scary that people think they can master trading so quickly. It has taken me a number of years just to stop losing like an idiot – just because I initially thought it would be easy and that I could immediately start making thousands. For the last 3 years I’ve started to make some serious gains although sometimes I still think I would make more if I’m more patient with my winners.
Be Persistent
If you have a trading system give it a fair trial. A number of losses doesn’t mean that your trading system is wrong, it could very well be that you have encountered a difficult few weeks of market conditions which is only to be expected after the strong run up the markets had since last year. The most consuming thing about the markets is that it is an ongoing learning process and everyone can still learn more no matter how long they have been in the market!
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About the Author:
Andy provides educational and training spreadbetting courses for private investors and traders of all skill levels.
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