LeighaMacomber posted an update 1 week ago
Spread Betting – How to Get Poor Quickly
My head hurts and my wallet is empty as I type this. In the last four weeks, spread betting has cost me nearly PS30,000. I was able to bet for one hour each day, five days per week. I was able spend approximately PS1,500 an hour. This is quite a lot of money. This isn’t as bad as you think. Demo sites offered by spread-betting companies allowed me to place bets. These simulations let you practice your betting skills before investing real money. Although I am not a financial wizard, I would not have made it rich if I were. It’s amazing that I was able so quickly to lose so much money. This begs the question: Spread betting seems so easy, so why is it so common for people get completely wiped out so fast?
Spread betting advertising is increasingly common in investment and money-management publications. Four to five spread betting companies are featured in weekly full-page color ads in the magazine I subscribe to. This advertising is unlike any other. Spread betting ads can be found in many Sunday newspapers’ business sections. They will soon be found in the personal finance section. Spread betting can seem appealing to many savers. Spread betting may be an attractive option for many savers. Spread betting could be a good option for many savers. After all, five percent per year in shares or money in bank will give you before taxes. Spread betting can make you ten percent per week, or five hundred percent annually. Spread betting is tax-free. Spread betting can make you more in one year than it takes to make the same amount of other investments.
Spreadbetters place bets on price movements in any market. This includes individual shares, currencies and commodities as well as whole markets like the FTSE or Dax. Spread betting companies make the most of their profits by placing an additional spread on the price at which the item will be sold or bought.
Spread betting offers many advantages over traditional investing.
You don’t have to buy anything. You can place bets on price movements, without having to own any underlying assets such as shares, commodities or foreign currency.
Trades and shares are exempt from tax. When you receive dividends from banks, however, you will have to pay income tax, stamp duties, capital gains and income taxes. Spread betting isn’t your only source of income. It can also be a full-time occupation.
You can choose to go either long or short. Spread betting is a way to make as much money regardless of whether the price rises or falls. As long as you can predict the direction, you can win. Before you can make a profit, the price of your investment must rise.
Two wagers can be placed on a rise and a fall simultaneously. For example, if the FTSE trades at 5551-5522 you can place one bet it will rise and one that it will fall. These bets can only be activated when the FTSE changes. It triggers your bet that the FTSE will rise if it starts rising. Your bet that it will fall will also trigger if it rises. It could appear that you will win regardless of the weather.
You can win up to four to five-fold if you place a wager of, for example, PS50 per pint. The pip is the minimum amount you can wager on. It all depends on whether the price moves in the right direction. A good bet can help you win more.
Wait for the breakout. The breakout occurs when many stocks, currencies, and commodities experience periods that are stable followed by sudden movements upwards or downwards. This is known as the breakout by spread-betters. Only a breakout can activate a bet.
Loss limits If you lose, you can add conditions to your bet that prevent your losses from exceeding your set limit.
You can make mid-flight adjustments. Most bets, e.g. On horse racing and roulette, most bets (e.g. Spread betting allows you cancel your bet at anytime. Spread betting allows you take your winnings even if you’re ahead. You have two choices if you’re behind: you can cut your losses immediately or wait for the situation to improve so that you can get back on track.
Spread betting is easy to make money. It’s only.
Industry estimates show that ninety percent spread-betters will lose most or all of their money in three months. Eight percent of spread-betters make good money, while two percent make it large. Spread betting companies presented a presentation where the salesman stated that over eighty percent of their customers had experienced losses. Six out of ten professional bets go sour. They can improve their wealth by managing losses and maximising their wins.
There are many things that could go horribly wrong
Spread betting appears to have many reasons spread bets can destroy most practitioners wealth.
Companies want you to lose. Spread-betting companies will call you many times asking for help after opening a demo or real account. This is the best customer support. Many people who call you will tell that they just want to help and don’t mind if you win the spread. Some will tell you that they want your winnings because spread-betting companies make more money when you win. You may feel great and be convinced that they are trustworthy, trustworthy and trustworthy. It is also a lie. Spreading money might be a way for the company make some extra cash. The spread is a way for the company to make a lot of money. Many companies have altered the terms of their websites to make it more likely that customers will lose. Spread betting companies can be enemies. Spread betting companies are more profitable than you lose. It’s that simple.
It can be difficult to break even. Spread betting companies will take the first PS50 that you win if you place a wager of, say, PS50 per pint. Your PS50 must move in the correct direction by at least two pips to win it back. To get your PS100 back, you will need to earn 3 pips. Your original wager will be lost and PS50 will lose a pip if the price moves in an unfavorable direction three times. This will lead to a loss of PS200. This is four times the original stake.
You can lose a lot of money – Most gambling involves losing only the amount that you bet on a horse, blackjack or roulette. Spread betting allows for you to lose much more quickly than what you have bet. My PS50 bet did not stop me losing more than PS800. Because it’s leveraged, your bet can produce both amazing gains and devastating losses. It is often the latter. It is possible to get a false sense of security from betters by placing a small number bets, such a PS5 or PS10 a pip. They are only aware of the risks when their losses exceed 5-10% of the original wager.
Spread betting leverage is a great idea. It allows you to make a lot of money, but also offers the chance to become poor. This is something many people don’t realize.
You can waste thousands of dollars on courses or systems. During a spread-betting seminar, participants were encouraged to enroll in a weekend course that teaches them how to spread the bet. This course normally costs around PS6,995, but the special price was for the first five people who signed up at PS1,997. Gurus offer many courses, including webinars and spread-betting strategies. Spread betting is a popular topic. There are many people who would be willing to share their knowledge. But I found all the information you require on the internet. Experts shouldn’t be wasting money on “Guru books”. These books are useless and are not worth the paper they are printed. Nobody sells secrets trading techniques if they are really successful. These men don’t trade secrets so they write books.
Bobbing around is what beats us – It is common to report that the price of gold has risen a couple dollars an ounce or that the FTSE index has dropped by a hundred and thirty points or that the pound has risen 2 cents per dollar. These reports can make financial instrument price movements appear smooth, up or down. However, stock prices, currencies, commodities and stock market prices rarely move in straight lines. They change every few seconds. If the FTSE is 5540 and you correctly place a PS50 bet that it will rise towards 5545, then you might not win PS200. It could fall to 5535, or lower, between 5545 and 5554. You can set a stop loss at 5536 and 5535 to avoid over-losing. Your stop loss will kick in if the index rises as expected and you’ll be losing PS250 to PS300. I placed over 100 bets to see if my predictions were right. Despite being right, I lost about 80 percent. The stop loss was triggered by fluctuations. In reality, the index moved from the previous position to the one I had predicted. This is an unusual situation where stop losses can cause you to lose when you should win. You can lose everything if you don’t have any stop losses or things go in the wrong direction.
Spread betting attracts losers. I was stunned at how many low-paid workers (waiters and porters) decided to spread bet because they believed that it could make them money. These people will bet with very little life savings against highly-skilled financial service professionals with years of experience, deep pockets and vast knowledge. It is easy for one to predict who will win.
Smartie or sucker?
Spread betting is a zero sum game. Spread betting is different from depositing money at a bank to lend money money to home-buyers or businesses. Spread betting simply distributes money among the smart and the stupid. Spread betting can be a great way of finding out if your choice is to be either one of the suckers (90%), or the smart (10%), who make their living by being smart. It was surprising to me that none the spread-betting professionals I met were young and friendly. After opening a live spread betting account I was able to win about PS100 per day for ten consecutive calendar days. The spread betting company claimed that I was unfairly betting and stopped me losing my bets. Please send me an email if you are able spread bet.