Spread Betting
Discussion
Evening All.
I have been having a play with the above on 'igindex'. Just small amounts until I get the hang of it but thus far it seems like a bit of a no-brainer in comparison to actually buying the shares of the company one wants to invest in.
You can put in guaranteed stops, limits etc and also you have a much greater degree of flexibility with regard to gearing. Also no CGT !
So what am I missing - any thoughts/experiences to share ?
I have been having a play with the above on 'igindex'. Just small amounts until I get the hang of it but thus far it seems like a bit of a no-brainer in comparison to actually buying the shares of the company one wants to invest in.
You can put in guaranteed stops, limits etc and also you have a much greater degree of flexibility with regard to gearing. Also no CGT !
So what am I missing - any thoughts/experiences to share ?
It's been about a week since we've had one of these threads. 
The bit you're missing is how to get the best entry so you don't get stopped out minutes after entering a "trade".
www.financial-spread-betting.com is a good start. You might want to make yourself a cup of coffee before starting. It's quite long.
The bit you're missing is how to get the best entry so you don't get stopped out minutes after entering a "trade".
www.financial-spread-betting.com is a good start. You might want to make yourself a cup of coffee before starting. It's quite long.
ShadownINja said:
It's been about a week since we've had one of these threads.
Oh sorry - well at least I checked this forum ShadownINja said:
The bit you're missing is how to get the best entry so you don't get stopped out minutes after entering a "trade".
www.financial-spread-betting.com is a good start. You might want to make yourself a cup of coffee before starting. It's quite long.
Thanks for the tip. Most of the 'trades' have a preset minimum stop distance (15% iirc) so one is unlikely to be stopped out right away but I take your point.www.financial-spread-betting.com is a good start. You might want to make yourself a cup of coffee before starting. It's quite long.
Just need to think of something to have a punt on now - anybody got a tip for me ?!
PS - why is there a capital 'IN' in your name ? Some mysterious pun ?
The problem with the 15% thing is that it's a general setting for all of them; you need to work out what is the best stop size for a particular instrument/stock. They all have their own characteristic so what is acceptable for one might be too tight for another.
As for tips, always do your own research.
As for tips, always do your own research.
ShadownINja said:
The problem with the 15% thing is that it's a general setting for all of them; you need to work out what is the best stop size for a particular instrument/stock. They all have their own characteristic so what is acceptable for one might be too tight for another.
Yes completely agree with that.ShadownINja said:
As for tips, always do your own research.
Yeah I suppose so. Boring though isn't it ? And nobody else to take the blame 
ShadownINja said:
Ok, buy Toad. Or whatever they've become. TG21 PLC? I think they've just renamed again. I've got 500 shares and am staring at a huge loss so please buy them and tell all your mates. Ta.
Apollo Zensen said:
Not sure how many spread betters there are round these parts but I wondered if anyone knew of any good resources (online/books) for analysing spread betting risk & exposures?
Spread betting is just a mechanism for trading a market so the risks you have are arguably threefold.First of all there is the risk of your spread betting company going "pop". I would say highly unlikeley and as a UK segregated client you have lots of protection. It is never something that has troubled me - there were a couple of two bob outfits that disappeared last year but again my understanding is as a seg client you do not have too many worries.
Then moving onto the real risks you have the usual market risk - of the thing you are trading moving against you and you losing. But that's markets.
The third risk which I think you may be getting at is of course the fact that spread betting (like CFDs/futures/margined fx) is a leveraged product - you don't have to put up the full value of the trade. So you could have, for example, a £1,000 position in Vodafone and only tie up £50 (5% for this example) from your account. Upside - if it goes up 10% and you close the position you have made £100. Of course, no free lunches - downside is if it goes down 10% you have lost £100 - so more than your initial deposit.
But as long as you have a sensible risk management approach (not trading too big comapred to your trading pot, using stops etc) margin need not be scary.
I hope this helps but if I have missed the point let me know.
Disclaimer: I work for IG
Hmmm....Where do I start.
I took VR from my bank last month. I used to "trade" from the office everyday, and seemed to make good money. I thought I could do it from home. Seemed better than spending 8-10 hours a day in the office, doing a job I hated. After all, I only need say £250 a day to keep myself happy...easy, it seemed.
Roll forward 5 weeks or so, and well, it ain;t THAT easy. Certain markets are easy to trade in. I had a huge scare recently going long on cable. Luckily it came back. However, I'm now in deep with the FTSE & Dow and I need another 150 points (in total) to get back. Other than these two "issues" I've been doing pretty well. Making between £400 and £800 a day. However, I've busted my own rules a few times, meaning if Im losing, I just move my stop. This is a bit dangerous for obvious reasons, but also whilst you haven't actually realised your loss, you ain't made any money.
Tis tough, but I love it!
I took VR from my bank last month. I used to "trade" from the office everyday, and seemed to make good money. I thought I could do it from home. Seemed better than spending 8-10 hours a day in the office, doing a job I hated. After all, I only need say £250 a day to keep myself happy...easy, it seemed.
Roll forward 5 weeks or so, and well, it ain;t THAT easy. Certain markets are easy to trade in. I had a huge scare recently going long on cable. Luckily it came back. However, I'm now in deep with the FTSE & Dow and I need another 150 points (in total) to get back. Other than these two "issues" I've been doing pretty well. Making between £400 and £800 a day. However, I've busted my own rules a few times, meaning if Im losing, I just move my stop. This is a bit dangerous for obvious reasons, but also whilst you haven't actually realised your loss, you ain't made any money.
Tis tough, but I love it!
Well I've had an 'interesting' few weeks after an initial honeymoon period - basically doing everything wrong: buying at the wrong time, getting out when I should stay in, lowering my stops rather than take a loss etc etc. Generally making an ar*e of it tbh.
The amounts are piddly but it has brought it home to me that I ain't cut out for this lark - hats off to any amateur who can make money at it without suffering a nervous breakdown !
Will probably be cleaned out sometime soon and give up in the huff
The amounts are piddly but it has brought it home to me that I ain't cut out for this lark - hats off to any amateur who can make money at it without suffering a nervous breakdown !
Will probably be cleaned out sometime soon and give up in the huff
Chilli said:
Wanna discuss your strategy, or your logic beind your decisions? Sometimes there is just a feeling you might have, and no logic behnd it, but I'll offer advice if I can.
Thanks mate, that's a kind offer.I think half (or more !) of the problem is that I dont really have a strategy at all - I made a few quid on the banks when they were on the way up a month or two ago (a chimp could have done this) then stayed in too long and lost most of it.
Now in Oil+Gas as I thought they looked cheap and that the oil price was on an upward trend in general. Doing ok-ish on this so far but spirits are flagging as I'm finding it rather stressful (which is ridiculous given the amounts involved) so I am wondering whether to give up and blow the remains on a night out or maybe a night in depending on how things go !
It was just for a bit of fun to begin with but the fun factor has been distinctly lacking of late...
dibbly_dobbler said:
Chilli said:
Wanna discuss your strategy, or your logic beind your decisions? Sometimes there is just a feeling you might have, and no logic behnd it, but I'll offer advice if I can.
Thanks mate, that's a kind offer.I think half (or more !) of the problem is that I dont really have a strategy at all - I made a few quid on the banks when they were on the way up a month or two ago (a chimp could have done this) then stayed in too long and lost most of it.
Now in Oil+Gas as I thought they looked cheap and that the oil price was on an upward trend in general. Doing ok-ish on this so far but spirits are flagging as I'm finding it rather stressful (which is ridiculous given the amounts involved) so I am wondering whether to give up and blow the remains on a night out or maybe a night in depending on how things go !
It was just for a bit of fun to begin with but the fun factor has been distinctly lacking of late...
That's fair enough. I'm sick and tired of hearing the "experts" say this 'n that, and more often that not, they're completely wrong. Current market conditions are a complete guess...no-one knows how the makets will react. Logic seems to have gone out of current pricing mechanisms.
For example, this week... Tues/Weds there was some economic stats out, forget what they were. It was good news, well above the analysts expectations. The market went up a tiny amount, before falling more than it had in the previous month or so. Then yesterday, The US jobless numbers come out....there was a rise for the first time for a while, much worse than these analysts had predicted...the market slipped a bit, then rallied... The Dow finished +172 for Christ's sake! today was mostly good news re earnings...yep, down.
My mate is a big oil "investor". He does untold amounts of research on individual companies, and acts accordingly. Problem is, you have to have patience with individuals... could take months for anything to happen.
Personally I love the crude prices. They are still pretty low, despite demand being very low. Speculators are driving the market and I love the volatility! God I wished I'd lumped on it at $33 bucks a barrel!
Depends what you want really. As I've said, I love the volatility, and am preapared to lose quite a lot. I don't like it, but I KNOW it will happen now and then. Thing is, can you afford to lose it, and would you accept it if you did? Personally, if it stopped me doing something like a night out or a holiday etc, I wouldn't do it!
My only advice would be to stick to your current levels. Put sensible stops in and LEAVE THEM ALONE! Also, have a profit in. mind. If you're lucky enough to have it fly past, move the stop up to realise it, an see where it goes. Although, generally, markets will pass through several levels in a day, so eventually you're likely to be stopped.
My average trade will be between £10 & £15 a point, with a 100 point stop. I've been convinced I would be proved right, and have been proved wrong! I've moved my stops many times, sometimes to 1000 points. All eggs in one basket?!
ps - I also like the crude prices. A shade over $69 for Sept futures the last time I looked.....Have a mental note to do something should it get nearer $68.
Good luck though, and feel free to pm me.
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