Learn Why World Market Traders Are Switching To Binary Betting From Their Favoured Positions
In order to be successful in spread betting you need to have a clear set of spread betting strategies. These spread betting strategies must be clearly defined so that they are easy to stick to. You need to consider your entry points, profit targets, stop loss, order types and risk management.
We will start with risk management as 해외축구중계 amateurs often neglect this. Risk management is possibly the most important part of your spread betting strategies. A key part of spread betting is living to see the next day. If you are taking on too much of a risk in each bet then the chances are that soon you will be wiped out. If you manage to breakeven in your first year of spread betting then you have done very well. For this reason it is best to start with only risking 0.5% – 2% of you risk capital per trade depending on your risk preferences.
Stop losses are critical to the success of a trader. The most successful traders often lose more times than they win, but because they keep their losses small, they end up winning overall. You should know your stop loss point before you enter a trade. There is no set rule of where to set your stop loss point and you need to find a solution that you are comfortable with. Two popular methods to set stop loss points are to put them just outside the average daily range and above/below a recent resistance/ support levels.
If your trade moves into profit then feel free to move your stop loss to your break even point. It is absolutely critical that you never move your stop loss point against you. If you get stopped out then you can always re-enter the trade at a later date.
Your entry point will be determined by the set of spread betting strategies you will be using. A popular entry point is a breakout above a level of resistance or breakdown below a level of support. The key to trading and what you need to incorporate into your spread betting strategies is reading what the market is doing and trade it. Don’t try and second guess the market or impose your views on it. The market will do what it wants, not what you want. This is why you set your entry for a breakout about the level of resistance as you are waiting for confirmation. Always let the market confirm the move before you enter.
Profit targets are important as they allow you to run your profits. Like your stop loss point, your profit target is part of your exit strategy. When you are trading you aren’t using a ‘buy to hold’ strategy. Again you need to fit this in with your spread betting strategies, if you are trading a trend then you need to establish a set of rules so that when your trade comes to an end you get out of the trade. When you are trading a trend you have to understand that you will give money back to the market when the trend comes to an end. This is a consequence of running your profits.