Financial Spread Betting Strategies
There are thousands of spread betting strategies out there, some are good but most are not good. Be wary of anyone purporting to tell you of a profit making strategy that delivers unrealistic gains, in almost all cases these prove to be scams. Think about the old saying 'if it sounds to good to be true... it probably is'. The market is run by individuals making decisions which influence prices, and in the same way if I asked you what you thought the population of London you could probably come up with an estimate, but it is one that is unlikely to be completely accurate, so too it is possible to use analysis to come up with an idea of where the markets going.
It is impossible to work out exactly what everyone is thinking but it is possible to estimate. Some estimates may be right, some may be completely wrong, however even in the cases where the analysis may be right at the time, something may change, a war, an unexpected report that changes that view. Best spread betting firms tend to include technical indicators and market analysis for free so make sure you trade with a reputable spread betting broker.
Broadly, trading strategies can be separated into 'fundamental' and 'technical' strategies. Fundamental are those you consider to be your traditional means of evaluating a company, P/E ratios, market CAP, consumer sentiment, GDP growth, competitor growth etc. More recently with technology growing ever more sophisticated, technical strategies have taken hold. That is not to say one method is better than the other, the jury is really out on that however it is worth looking at both fundamental and technical theory.
The reason for this is because as the market is made up of participants some of which will be looking at technical, others at fundamentals it is worth seeing both sides of a coin before making a decision. It is certainly worth choosing one area to focus on to save yourself getting overloaded with data but an understanding of both sides would be helpful in finding out what works for you.
Technical strategies go from simple support and resistance levels to the very complicated Fibonacci sequences and Elliot Wave theory. If you are not mathematically minded it is worth staying away from the latter as there no consensus that the really technical stuff works, and you should always think if you hardly understand something then it is certainly not worth betting money on it.
The first area to understand is hedging using spread betting, this is not really a strategy but more a method of controlling risk and exposure to certain markets.
