Financial Spread Betting For Dummies

Learn to:

Spread bet on shares, forex and more Keep risk under control Analyse your trading behaviour Develop a trading strategy and monitor your progress

Your one–stop guide to making spread betting work for you – in up, down and sideways markets

Keen to try your hand at financial spread betting? Perhaps you already invest in shares, and you′re looking for new strategies to boost your profits. Or maybe you′ve just heard the buzz and want to know what all the fuss is about. Packed with priceless tips, this is your plain–English guide to all things spread betting.

Learn your ABCs – nail down the spread betting basics including what it is, how to place orders, how to pick a broker and more Shop the markets – get the lowdown on the main types of spread bet, including shares, foreign exchange, index trading, commodities and interest rate products The long and short of long and short – get the lowdown on long versus short trading, how each is done and when to use each method Keep a lid on leverage – learn about the pros and cons of leverage, how to use it and how to manage the risks involved Analyse and strategise – discover the various trading strategies (such as swing trading and trend trading), as well as different analytical techniques, and how to make them work for you Keep an eye on your bottom line – find out how to create a solid trading plan and budget – and stick with them! – and what can happen if you don′t

Open the book and find:

The various types of spread bet available How to choose a broker and place orders Relatively low–risk ways of using leverage Techniques for managing your betting risks Advice on setting up a comprehensive trading plan Sophisticated spread betting strategies and how to use them The 10 biggest mistakes to avoid

Introduction  1

Part I: Getting Started with Financial Spread Betting  7

Chapter 1: Deciding Whether Financial Spread Betting Is For You 9

Chapter 2: Setting Yourself Up for Success 25

Chapter 3: Making the Most of Financial Spread Betting 35

Part II: Touring the Spread Betting Marketplace  47

Chapter 4: Spread Betting on Share Markets 49

Chapter 5: Taking on the World of Foreign Exchange 63

Chapter 6: Following the Big Guns: Spread Betting on Indexes 77

Chapter 7: Venturing into Commodities and Interest Rate Products 91

Part III: Keeping Risk Under Control  107

Chapter 8: Managing Risk: Your Key to Trading Survival 109

Chapter 9: Mastering Position Sizing 123

Part IV: Trading Strategies  131

Chapter 10: Making Informed Decisions Based on the Economy 133

Chapter 11: Understanding Trading Methods 151

Chapter 12: Taking Lessons from Hedge Funds 169

Chapter 13: Ah! Technical Analysis 179

Chapter 14: Charting Spread Bets with Software 195

Part V: Knowing Where You’re Going  207

Chapter 15: Analysing Your Trading Behaviour 209

Chapter 16: Developing a Trading Plan 217

Chapter 17: Tracking Your Progress 231

Part VI: The Part of Tens  239

Chapter 18: Ten Common Mistakes Beginners Make When Spread Betting 241

Chapter 19: Ten Lessons for Dealing with Leverage 247

Chapter 20: Ten Ways to Plan Your Trades 253

Appendix A: Glossary 259

Index  279

Vanya Dragomanovich is Commodities Editor at FTSE Global Markets, and Commodities and Shares Editor at thearmchairtrader.com. A veteran financial journalist, she spent more than 10 years at Dow Jones Newswires, where she contributed often to the Wall Street Journal. David Land has been involved in the financial markets for well over a decade, working in stockbroking, analysis and education. He is a regular commentator on market conditions and trading and investing strategy, and holds a Master of Applied Finance from the Macquarie Applied Finance Centre.