Don’t Go For The Big Win

You will no doubt be aware that financial spread betting can be extremely profitable and many individuals are quietly making a very respectable income from the comfort of their own homes but there is one aspect of financial spread betting that you should be acutely aware of and that is not to always enter a trade with the intention of making hundreds or thousands of pounds in profits.

Because of the leverage which is the basis of financial spread betting, large amounts of money can be won with a relatively small investment and stories of these big wins are sometimes reported in the national press which encourages novice spread bettors to believe that financial spread betting is something of a get rich quick opportunity which will enable them to realise their financial dreams with hardly any effort and in the shortest possible space of time.

It goes without saying that if someone enters the markets with that kind of attitude the results that they will experience will be poor and they will end up losing money. They will look at taking on extremely volatile positions, stake far more than they are comfortable with and not have an exit strategy planned before they enter a trade. As far as a stop loss is concerned, why would that need one of those when there is no doubt that they are going to win, big time!

Whilst it is true, they may get lucky and get on the right side of a trade with a large stake in place and see a profit in the thousands but please believe me when I say that the odds are most definitely stacked against them.

Now compare this attitude with someone who starts off with a betting bank and is using stakes that they are comfortable with, a stop loss is in place with every trade and the exit point to realise a profit has already been identified, and will be implemented when the time comes. They know that it is unlikely that they will see thousands of pounds profit in one day, not with a stake size of £5 anyway, but one thing is for sure, this more cautious financial spread bettor will still be in the game this time next year whilst it is doubtful that the one who is going for the big win will still be be trading this time next week!

So, when you next read a story in the press or online which tells of someone who has made hundreds of thousand of pounds over the course of a week with a few highly speculative trades, just smile to yourself because that really will be a one off, successful financial spread bettors know only to well that the term, ‘slowly slowly, catch the monkey’ applies to anyone who is just starting out in this fantastic form of speculating on the financial markets and it should not be forgotten that they to could be earning thousands of pounds over the course of a week, but the difference is that they won’t be making this kind of money by risking everything on a speculative bet but instead taking calculated risks which will most definitely pay off over the long run.

The great thing is though, once you are carrying out your financial spread betting in a calm and calculated way you just might find that you encounter one of those days when a trade that you have made reacts to a certain piece of news and you will also be on the right side of a big move and make thousands of pounds over a short space of time, when this happens though make sure that you don’t get carried away!

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