A Sad Beginning does not always mean a Sad Destiny.

Within the seemingly lucrative spread betting trade lies horror stories of people who have ended up broke within the first few trades. However, there are a few who have managed to make millions from a few bucks that were put to good use. The big question is what it takes for one to succeed in the venture. This is not an easy question since there is no explicit formulae to achievement. However, most of the traders agree that during entry, there is more than a 90% chance of losing. Consequently, more than 70% of the newbies quit the venture, never to think of it again. However, there is something that has remained unclear. What do those who survive do?

Don’t become frustrated by setbacks during entry!

Admittedly, as indicated above, most of the newcomers make losses that are hardly recovered. But that should not always be a reason to quit. What if you acknowledge the losses, as a part of the venture, and use them to learn useful survival lessons? Apparently, almost all newcomers lose. Well then, it can be said that making losses is part of orientation. But the losses can be managed by taking very small manageable risks at the start and slowly increasing the volume as one gets an experience, always ready to lose what is put up. Once a bettor is courageous to face the losses without frustration and ready to put them aside and move on, there is the mind of a good trader. At times, I tend to think that a new bettor should set aside a fraction of his money and be ready to sacrifice it for a greater good performance in the future.

Remaining steadfast and courageous

In spite of the probable chances of making a fortune, the chances of making a loss are equal. Every bettor must acknowledge these simple facts and be ready to face it. The primary strategy should be developing a plan. Every successful bettor is loyal to the initial plan, no matter the cost. For an awaited chance to exit a profitable bet, several swings of the market curve will occur, some having profits and others having losses. Placing the stop loss command at a strategic point is imperative. However, the stop loss mark should not be too close to allow reasonable swings of the market curve. Placing the stop loss mark too close to the entry price will not enable the trade to have a big swing for maximum profit.

Understanding the Risks

Spread betting is not exactly gambling; its more like a business venture with a systematic approach and consequences for every course of action that is taken. Understanding the risk demands understanding the market. These are the factors that can change, when to expect a change, at what point to place a stop loss and at what point to exit the trade with how much profit. All these decisions come after a series of thought and consulation. Analysing the market, using both technical and economic tools is crucial for any prudently placed bet. After such an analysis, a strategic position can be established both for setting the stop loss threshold and the exit trade point after making the desired profit.

Identifying a Good Broker

Betting on the stock market can demand too much capital. However, there are great agents who are ready to work with bettors and are happy to see them make fortunes while they grab their legit share with peace. A good agent will try to give you useful hints so that your bet is correct. They will furnish you with information, news and possible clues that a good trader will be keen to observe. What is more, most top brokers offer some virtual money for newbies to practice using the demo account. One of the more respectable agents is CMC markets. They have stood firm and held their bettor’s hands throughout the trades. Find your best fit and follow my advice and a good plan, and you’ll be putting down your own confession.