With interest rates rising, many people are turning their attention away from property investing and into the fastest growing way to trade the stockmarket – Spreadbetting.
With companies like Barclay’s Stockbrokers now offering spreadbetting to their clients, and the starting capital required as low as £500, as well as having a tax free status on all profits, many people are jumping in – with varying results…
Greg Secker is the Head Trader and CEO of Knowledge To Action home of the Traders University programme. Traders University teaches beginners and intermediates how to make an immediate monthly cashflow using proven strategies combined with risk management. We asked him his tips for getting it right in the stockmarket.
As a coach to the trading community I am always approached by new and intermediate traders who are hell bent on making a quick killing, yet fail to weigh up the risks.
The rules we learn from our daily lives are just so very different from those in the trading world – and it’s the reason why we are practically hardwired for failure from the start. For example, throughout life most of us associate the following “Exciting = Good” (think Casino hall versus Examination hall).
Apply this to the trading world and it spells disaster, People mistake potential trades that are exciting looking and moving for a profitable trades only to see the position reverse and almost immediately run into a loss.
The answer? Put simply if a trade is already moving it’s too late. Instead look for trades that are about to breakout and enter for a low risk entry following a pull back, and try to place your stop loss close to a consolidation.