Regardless of the asset being traded the option will be the same; traders can select to buy if they trust that the market will progress, or sell if they think that the market will lose. The more the subsequent movement of that market then the more the gain or loss; it all depends on which way the market moves.
It could be argued that what separates the profit makers from the losers is such a spread-betting game-strategy. You are unlikely to be able to build your own strategy over night and you should be calm and spend plenty of time and effort, trial and error to perfecting it.
Building up the elements of your strategy can be mind blowing, what with the complexity and diversity of the charting tools and indicators available. As it can be difficult to know where to begin, and trade through ETX Capital, let us go through some tips given below:
1.Scrutinize your research:
Before you start trading through each spread bet, Note down your strategy: Reason for taking the decision, trade size, stop loss level and Planned exit strategy .If the consider the bet after close examination, note down the reasons so that you will not make that consideration and sometimes re-calculation may also be necessary.
2. Observe the charts:
Have a look at the chart of your product and observe if it gives any significant signals. Take a clear view to find if its giving any resistance or support around its present level? Where are its moving averages? Map out the Relative Strength Index, Stochastic and Moving Average Convergence Divergence to see what kind of signals they are displaying.
3. Paper Trade:
Paper trade is mostly for those starting off, also it can be recommendable to some spread betters to ‘paper trade’ for a while. Choose a trade you intend to do, note it down and go after it to its conclusion. Do this until you feel comfortable with your trading ideas.
4. Decide a Strategy and adhere to it:
Trading should be done for a reason especially for making profit. Maybe at Beggining, note down why you have started off the trade. If you do not have a reason to place the trade, then maybe it’s worth thinking through your strategy? Plan where you are going to put your stop loss and why, and plan where you intend to take a gain and why. Also think about moving your stop loss closer to your entry price to guarantee a profit if the trade starts going your way.
5. Learn to use limit orders:
Time is limited for most of us – plan your trades when you get a chance maybe in the evening and place limit orders so you don’t have to be watching a screen all day or miss out on a trade because you are tied up.
6. Positive attitude :
Don’t be too greedy or too over- confident about the trading. Positive attitude always fetch you good profit in spread betting