 Investing in the stock market can offer steady returns with the right knowledge. B2B investigates how spread betting can deliver healthy returns from just one hour a day.
::With the current climate of shrinking property prices, constipated credit markets and falling interest on savings accounts, many people are seeking a more effective and safer way to manage their investments. We are a community that has discovered the profit potential of property investing. Now it's time to expand our portfolio and add another tool to our belt that also enables us to make money when property softens.
Thousands of entrepreneurs, many of them complete novices, have taken up trading to develop a second income stream out of the stock market. And why not?
Using spread betting, the fastest-growing way to trade the markets, budding traders can start with as little as 600 euros in their starting pot and profit from moves in the stock market, currency moves, gold and oil prices, even house prices, where all profits are tax-free. Money is made whether the market is going up or down, which could be very handy in today's downwardly mobile stock and property markets. The best thing is that your trading only takes one hour a day. So that bourgeoning enterprise stays on track while your stocks take off. But, the stock market can be risky. If you work hard to build up a healthy nest-egg then 'gambling' it away on the stock market is the last thing you want to do. In any business venture there is a risk attached and trading is no different. Trading is all about risk management and the approach is outlined by highlighting how to never allow a losing trade to eat more than 1% of your trading capital.
Five top tips for a successful trading career...
• Master risk first, not last:Never allow a losing trade to eat more than 1% of your trading capital.
• Get a mentor: You need interactive regular feedback on your trading skill. Many people overestimate their ability early on. Strategies that work today may not work tomorrow, so try to be around experts that can focus on you.
• Boring trades not exciting ones: If a stock is moving in a sideways range, look to enter the trade the moment this established range breaks out. Always use a stop loss and remember panic-buying leads to panic-selling.
• Never trade with money you can’t afford to lose:Most people over-trade so expect a loss of half the fund.
•Let profitable trades run, cut losers fast:Successful traders cut losing trades in nano-seconds, losers hang on in there. :: |
