The United Kingdom is a place where betting is not that something that people would randomly joke about. Here, people take their betting very seriously and some even choose the lifestyle of a punter. A punter, as far as the Britons are concerned, is a person who regularly engages in one form of the betting or the other.
Most commonly, the word punter is used to describe a person who gets himself or herself involved in sports betting, football betting in particular, every now and then.
However, you have punters whose tastes are a little more complex than simply sports. Among them, you have financial spread bettors. Financial spread betting is one of the most enjoyable and effective ways of earning some money by making the best use of your prediction skills.
Financial spread betting, as the name suggests, involves a considerable amount of money. It is not child’s play by any stretch of the imagination. People who get involved in financial spread need to be highly competitive, intelligent and strategic in order to acquire any degree of success in financial spread betting.
The key word in the above three characteristics of a successful financial spread bettor is “strategic”.
Since most people have the assumption that winning at bets is all about having good luck and being more fortunate than everybody else, it is important to assert the fact that the outcome of a bet is not completely beyond the control of the bettor.
To be prosperous in spread betting, one needs to master the art of betting. The art of betting, especially financial betting, can only be mastered if there is sufficient knowledge for the bettors to take inspiration from.
The more knowledgeable a bettor, the higher are his chances of securing the prize money of the bet. A lot of this knowledge comes from learning the basic tips and tricks of financial spread betting.
Top 5 Tips for Financial Spread Betting in the UK
The financial spread betting atmosphere differs from one country to the other. The way people engage in financial betting in Germany, will not necessarily be the same approaches taken by the people in France.
As far as the United Kingdom is concerned, there are certain financial spread betting tips and tricks that are sure to put you in a far more advantageous position to winning the bet that you were initially.
Using these tips and tricks may not guarantee you success, but it will surely help your chances of coming out of a financial spread betting platform victorious. The following are some of the best financial spread betting tips and tricks that you can use to improve your skills and better your chances of winning.
1) Refrain from Margined Trading
Staying away from margined trading is a piece of advice for spread bettors who have no interest in losing their portfolio in a short amount of time.
Most people believe that holding on to the portfolio from a long term perspective is the best way to go. One of the reasons for that is the increase in cost that you will encounter every time you roll over a spread betting trade.
Furthermore, since there is no physical ownership of the stock, you will not be entitled to the normal benefits of the dividends, the bonuses or the stock splits. Rolling over a stock can only be a good option if the interest rates are declining in the economy.
2) Be Cautious about Deposit Margins
Everything you do in financial spread betting must be approached with considerable caution. You will put a significant amount of money at stake when you try your luck with spread betting, and being careless is an option that you simply cannot afford.
Hence, it is imperative that you always stay aware of the deposit margins that are charged.
If the deposit margins are high for a specific stock that you are interested in, then it is time to let go of your personal preferences for the sake of a financial benefit. Instead of sticking with the stock that originally piqued your interest, you should find stocks that have much lower margins.
This makes your spread betting a lot easier and smoother. Your funds will be used more effectively and the overall leverage will be greatly similar, if not the same as before.
3) Always Trade with Stick Stop Losses
Trading with stick stop losses is one of the thumb rules of financial spread betting. You have to make sure that the stick stop losses are guaranteed. This prevents you from being adversely affected by any negative movement in the price of stocks.
4) Keep Cash or Property Reserved
Venturing into spread betting with little to no backup cash or property is like marching into the heart of enemy territory without any weapons. With such a strategy, failure is imminent. Once again, spread betting is not about depending on your luck. It’s about creating good luck on your own.
Bearing this in mind, it should come as no surprise to you that having backup in the form of cash or property is something a successful spread bettor never forgets before indulging in margined trading. If you ignore this simple tip, it may cost you heavily in the long run.
5) Do Not Solely Focus on High Visible Companies
Looking for high visible companies only is a strategy that you should not adhere to under any circumstances. Dealing with high visible companies for margined trading is good, but not when you overdo it. Believe it or not, some of the more boring stocks can give you more fruitful returns than the ones belong to high visible companies.
You may see a lot of novice spread bettors working with high visible companies on a regular basis, but that is only because they do not know any better.
Consult with anyone who has commendable experience and expertise in the field and they will frankly tell you that it’s better to avoid high visible companies for more suitable opportunities every once in a while.