What is Spread Betting?

 

If you are new to the world of financial spread betting then you have come to the right place. Spread Betting Beginner is your resource to all things spread betting and best of all it's free. My name is Harry and I run this site. I regard myself as a spread betting beginner and refer to myself likewise in all blog entries, forum posts and other correspondence throughout this site.

 

I've made no assumptions in writing the content of the site and it is aimed at complete beginners right through to experts. If you are a newbie then I suggest you first learn the basics. My beginners guide to spread betting is a great place to start.

 

A Brief Overview

 

If you're completely new to spread betting you're probably wondering what it actually is. Well spread betting offers a unique way for you to access and trade the worlds financial markets. You can speculate on anything from FOREX to Gold, Form Orange Juice to Indices. You can trade your favourite companies from all over the world such as Apple, Microsoft, BP and Vodafone. You can spread bet as much or as little as you would like, but be warned it's not as easy as some might make it seem. You can make or lose money very quickly and it's of the upmost importance that you only spread bet money you can afford to lose.

 

Making Money

  1. How much money can I make spread betting?
  2. Can I make millions?
  3. How much money do I need to start?
  4. How can I Guarantee I will make money?
  5. I want to be rich! Will spread betting make me rich?
  6. How much money do most people make spread betting?
  7. I'm using my savings to spread bet. I can't afford to lose the money. Should I be trading?
  8. What's a sensible amount of money to start trading with?
  9. I lost all my initial deposit spread betting. Should I bet more to win it back?
  10. I've heard stories of people losing thousands trading. Will this happen to me?
  11. May the markets be with you! What's that all about?

Still Interested?

 

If I haven't put you off, believe me I don't want to put you off but it's highly important you understand the risks involved. So If I haven't put you off you will need a few key things to get you started.

 

Choosing the right Company

 

Firstly you will need a spread betting company. Now most traders that I know have more than one firm they use on a regular basis. Why more than one? Well some companies offer better spreads on some products than others and vice versa. Therefore you can check you are getting the best deal available to you, which in the long run will save you a lot of money. You can use my companies compared chart to help you choose the right firm for you. If you're still struggling to decide then why not check out my company reviews to help you make up your mind.

 

Only Risk what you can afford to lose!

 

Under no circumstances should you spread bet with money you need to pay the mortgage, bills, kids collage funds or anything else you need the money for. Only ever spread bet with money you can afford to lose. I know no one likes to lose money, I know I don't. If you are lucky enough to have some spare money you can use for spread betting I would right it off in your mind. Pretend that you no longer have the money this way if you lose the lot, although you won't be happy, you will be mentally prepared to handle the loss. Believe me it happens. People enter the world of spread betting thinking how hard can it be only to realise it's a tough old game and loose all their money and wonder "What happened there!".

 

Experience Counts For a Lot!

 

You may not realise it right now but the journey you are about to embark on is not going to be an easy ride. You will go on a roller coaster of emotions, possibly over trade, make the same mistakes as everyone else, you may even end up quitting to go and lick your wounds from your losses. The thing you need to realise is, it will take time for you to build your experience. Imagine you want to become a doctor. You will need to study hard for several years, pass numerous tests and exams before you become qualified. Then you need to gain practical experience before you can be come a fully fledged doctor. The same is true for trading the financial markets.

 

You will need to read books, study hard, practice what you have learnt and then maybe you will start to succeed. A book on technical analysis and charting would be a great idea as it would help cut to the chase as far as share price are concerned and help focus one on profit opportunities. I'm mainly a swing trader and therefore tend to trade weekly or monthly setups. When I see the right set-up I trade it and tend to be correct far more than I'm wrong. You should use this site to your full advantage. Read my blog entries. In there I detail my experiences and any new trades that I make. Register for the spread betting forum. You will find many knowledgeable members there who are more than willing to help you and share their own experiences with you. The important thing is to start your spread betting education now! Remember to only commit to any position on what you can really afford to lose.

 

Latest from my spread betting blog

Excuse my absence...

30 June
By: Harry

I’m sorry for not having posted lately but I’ve been exceptionally busy even though I’ve continued to trade.   To summarise I’ve lost a lot of money on my Avocet holdings,  made money on Amara, lost a lot on Gulfsands (which luckily I’ve managed to offload on its recent tick-up to 68p) and made a lot on long trades on both Xcite Energy and Quindell which I’ve timed out very well. I’m thinking of posting a statement of my account here if I figure out how to upload the data efficiently.

I still believe in Centamin as a long term play.  In my view they are relatively immune to gold price perturbations compared to the vast majority of producers that I monitor – thanks to their low all-in costs.

At current price of gold and extrapolating forward to their full 50:50 split with the state by c. 2019, I still estimate their earnings per share at 12p+ (ie making their forward P/E c.5x!), so on a fundamental basis they remain considerably undervalued.

Dividend payments are due to be paid from this financial year onwards.

Their large capital expenditures on the 10mtpa expansion are complete – so free cash flow will rise and remain positive going forward.

They have considerable resources and reserves – so life of mine for Sukari is considerable – even at c.600kozpa.

Ev/OPCF for 2013 was just 4.3x – indicating both the low valuation and extremely poor sentiment across th [Read more...]

And the Fed keeps Pumping!!

19 September
By: Harry

So the Fed will continue pumping liquidity
 
Is this good news? Will it end pretty?  The Federal Reserve has lost its nerve and will continue with quantitative easing i.e. printing money out of thin air.  What a craven lot they are, and it looks like Bernanke will duck the tapering decision to leave it all for his successor to worry over.
 
Here’s how I performed on my last trades; have to admit they went pretty good but I did well to cut my positions when I saw that the USA were shying away from attacking Syria.
 
Amara
 
Bought 100,000 Amara at 17p on the 19th August and sold them at 19.8p on the 30th August
 
Gain: GBP2,800
 
 
Avocet
Bought 100,000 Avocet at 21p on the 28th February and sold them at 20.1p on the 30th August
 
Loss: GBP900
 
Bought 100,000 Avocet at 11.3p on the 08th August and sold them at 20p on the 05th September
 
Gain: 8,700
 
Bought 50,000 Avocet at 12.8p on the 19th August and sold them at 20p on the 05th September
 
Gain: GBP3,600
 
Net Gain: GBP11,400
 
 
I’m also very heavy at the moment in Centamin shares having bought over 100,000 at an average of 42.397p
 
Over the last month I’ve booked p [Read more...]

Avocet, Amara and Centamin

04 September
By: Harry

Many reasons for the move up and potentially a lot more to come:

  1. Price of Gold has been recovering of late and will hopefully be in line for a decent spike up when the first US / French cruise missile hits Syria. All the political lobbying seems to be indicating a yes vote in America on Monday and the Obama regime seem mind set on action.
  2. Chinese economy is on the mend as is UK and US – and this has led to a recovery in mining stock shareprices.

Avocet and Amara Mining seem highly correlated with each other and with the price of gold; a 1% move in the price of gold translates to over a 5% moving in the underlying company share prices.
 
On the other hand, Centamin’s price movements have littl to do with the price of gold, nothing to do with the world situation outside of Egypt.
 
CEY share price was heading towards 200p when the Egyptian revolution kicked in. It should really be at least 200p by now.  Any move towards Egyptian stability, even if that may be control by the army releases enough of that downward pressure to allow the price to rise to closer to its political environmental friendly level.

  1. Sinopec (despite the geopolitical uncertainties) has just taken a 33% stake in an Egyptian Oil and Gas company (Apache Oil).
  2. Realisation that CEY is one of the lowest cost gold producers worldwide and is expanding production and on target to meet FY targets. Additionally lo [Read more...]