How to lose money on spread betting. This would be under reverse tips rather than tips right? I’ve read twice in the last week that 90 per cent of spread betting accounts lose money. Twice the information has come from insiders, people who work for the dealing firms who run spread betting accounts. Most spread betting accounts are with retail customers, individuals trying to game the markets. These are people who presumably are interested in shares, who think they know something about shares. Also, bear in mind that spread betting, while a very risky business, isn’t the same as doing the lottery or betting on the dogs or the horses. The first we can say is strictly luck, nobody’s going to argue with that; the second is so difficult to predict as to be a mug’s game … even the third is hugely loaded against you unless you have real expertise and inside knowledge. But the stockmarkets?
Now I know there are some who’ll say that the markets are a fix to compare with anything that goes on in sports, but who would be losing money shorting the FTSE? Or bank shares dropping? In recent months these have been as close to a one-way bet as you’ll get. What particular brand of reverse alchemy do people have to be losing 90 per cent of the time. And let’s get this straight – 90 per cent of spread bets aren’t losing bets, if they were the bookies would be changing the odds (or narrowing the spreads in this case) in our favour, because they don’t want us to lose 90 per cent of the time, they want the odds to shade them, so you keep coming back and spending money … think of the way fruit machines are set up in pubs. Without the regular kerching and clatter of coin spewing out, nobody is enticed to play. It’s 90 per cent of accounts that are losers. How to lose money on spread betting? The answer is simple according to the experts.
Too many bets, too many trades, too few people putting stop losses in place and sticking with them. Too little attention paid to moving those stops … so people are often closed out at the wrong time. Too little research done on companies you’re putting the bets on. Forget not catching a falling knife … some people are betting on the knife once it’s hit the floor and wondering why it won’t drop any further. In short, the way you lose on any share trading – too much impulse and not enough research – that’s how to lose on spread betting. Buck the trend, do your research and learn how to win your spread bets.
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