Spread Betting – How To Get Poor Quickly?

 

While I’m writing this, I’m suffering from an itch in my head and a drained wallet. Over the past four weeks, I’ve lost close to PS30,000 in spread betting, for around one hour every day, seven days a week. In the end, I spent about PS1,500 in an hour. This is quite a lot of money. It’s actually not the way it appears. It was a good thing that I bet using spread-betting businesses on Demo websites. They are simulations that they offer live betting websites which allow you to test before you begin betting with real money. I’m aware that I’m not a genius in the financial realm, and would have been wealthy in the past. But, the possibility that I could spend so much money so quickly begs the question: If spread betting is so simple, how come so many people lose their money completely quickly?

We’re seeing more and more advertisements for spread betting appearing in investment and money management magazines. In the magazine I use there are four or five distinct spread betting companies run full-page color ads every week, surpassing all other form of advertising. Spread betting advertisements are prevalent in the business sections of a lot of weekend papers and are likely to soon begin to be seen in personal financial sections. Spread betting may appear appealing to a lot of savers. For all we know, the money you put into an account at a bank, shares or unit trusts could yield us around five percent a year, before taxes. However, a sensible run on spread betting could make you ten cent per week or five hundred percent per year – totally and amazingly tax-free. Spread betting lets you make in a single year what it takes up to a hundred years to earn with other investments. slot online

Spreadbetters gamble on price fluctuations of everything starting from single shares to currencies, and commodities, to markets that span those of the FTSE, Dax or S&P. It’s called spread betting because the firm that provides the service earns most of their profits by placing an additional spread on the cost at which something will be purchased or sold.

Spread betting is believed to offer many advantages when compared with traditional investments:

It doesn’t require you to purchase anything it allows you to place bets on price movements , without needing to purchase the underlying assets like shares, commodities , or foreign exchange.
The HTML0 is tax free when you buy and sell shares are dividends paid or receive interest from a financial institution, you must pay taxes such as the stamp duty and capital gain, and income tax. If spread betting is not your sole sources of revenue, then there aren’t taxes to be paid since it’s considered gambling.
You can choose to go either short or long when you spread bets, you will earn the same amount regardless of whether prices rise or fall, provided you know the direction accurately. Like most other investments, you require the price to increase before you can make profits.
You can place bets on a decline or a rise simultaneouslyin the event that the FTSE is, for instance, is trading between 5551 and 5552 it is possible to place two bets, one on whether it will rise, and the other that it will decline. They only trigger once the FTSE actually begins to move. If it begins to move upwards, your bet that will rise is activated. In the event that it drops and falls, only your bet that it will fall will be triggered. This means that no matter the weather or shining, you’ll be the winner.
A huge leverage If you place a bet of that you bet PS50 one pip (a pip is generally the lowest price change you can bet) it is possible to make a profit of up to five times the amount of your initial bet if price goes in the correct direction. If you bet correctly you could win more.
It is possible to wait for the breakoutPrice movements on a variety of commodities, shares, currencies and other items that place bets on typically have periods of stability, and then sudden fluctuations either up or down, which spread-betters refers to as the breakout. You can bet that will only be activated when breakouts occur.
Loss limit You may include conditions on your bet that will ensure that your losses do not exceed the amount you have set should your bet go wrong.
You can alter the speed of your flight for the majority of bets, for instance betting on horse racing or roulette, when the race is over or the croupier has announced “no more bets,” you must wait for the results to find out whether you’ve been successful or not. Spread betting allows you to decide to end the bet any point. If you’re ahead you can cash in your profits; if you’re in the back, you can take your losses off or just wait and hoping that things will turn around and you’ll get back up.

With all the benefits in spread betting, it could be fairly easy to earn quite a bit of money without putting in too much effort. If you only.

Industry estimates suggest that about ninety percent of spread-betters will lose the majority or all of their funds and shut down their accounts within three months after they began. There are 8 percent or so that make decent money regularly and around two percent of spread-betters who earn a fortune. I’ve attended several seminars organized by spread betting companies and, at one of them the salesperson admitted that more than 80 percent of his clients had lost money. Many professionals also lose around six bets of one. However, by managing the losses they make and increasing their winnings on winning bets, the will boost their fortunes.

How it could be disastrously wrong

There are a variety of reasons for why Spread betting has proven to be so successful at radically destroying most players Wealth:

The firms would like to see you lose when you first create a demo or a real account, you’ll receive several calls from extremely helpful and accommodating young women and men from the spread-betting business to ask if they have anything they can help you in establishing your account. It’s customer support at its top. The majority of people who contact you will repeat that they’re just trying to assist and are satisfied if you succeed as their business only earns profits from spread betting. Some will tell you that they’d like you to win, as they say that the higher you score and win, the more likely you are to bet, and the more spread betting companies earns. It can make you feel better and assure you the organization is honest, transparent and trustworthy, and incite you to choose their spread-betting services for betting. However, it’s also a liar. It’s true that the business may earn some of money through the spread. But, with a lot of your bets you’re betting against the business and they’d like to lose massively. In the past month, I’ve witnessed numerous companies alter the terms on their websites, making it more likely that the people who are using them lose. The lesson to learn is that spread betting firms aren’t your friend. The more you lose , the more they’ll win. It’s as simple as that.
It’s hard to reach a point of no return If you place a bet of on say PS50 one pip, and the price goes according to your preferences the spread betting business gets one PS50 you take home. The price must move by two pip in the correct direction for you to get your PS50 back, and three pip to win PS100 and double your money. If the price changes three pip in the opposite direction, you’ll lose your initial bet and PS50 1 pip, which is an overall loss of PS200 or four times the amount you bet.
The losses can be huge When you gamble it is possible to lose the amount you bet on the blackjack table, horse or roulette. Spread betting allows you to quickly let go of much more than you put in. I didn’t set a stop loss for one bet, and I managed to lose more than PS800 in only the one PS50 bet. Because the bet you place is leveraged, you could gain huge profits and difficult losses. Most of the time, it’s the former. The tiny amount of bets, typically PS5 or PS10 pip, can lead players into a false sense of security. It’s when losses reach between five and ten times the initial bet that they are aware of the risk they’ve taken.

“The leverage of spread betting implies that you could make money which is an extremely appealing idea however, it also means that you will be poor, which most people don’t think about. ”

It is possible to spend thousands of dollars on training and techniquesIn one of the free spread-betting course I attended, we were firmly advised to sign up for an intensive two-day course to teach the art of spread betting effectively. The usual cost for this course is (we were informed) the sum of PS6,995, however there was a deal for the first five participants to sign-up for only 1,997. There are numerous different courses like this, and also expert consultants who offer their exclusive spread-betting systems guidebooks, webinars, as well as all kinds of other tips. With so many alleged experts reportedly earning their living by teaching others how to spread bets, there’s bound to be plenty of people who would benefit from it. However, everything you require to know and more is accessible for in the form of free books through the Internet. One expert said “Don’t spend your money on “Guru” books that are written by experts. They’re flimsy and are not worth the paper they’re printed on. No one sells a trader’s secret method if they’re actually successful. The sole reason they write books is that they did not succeed in the trading industry..
It’s the bobbing around that will beat you It is common to see on news reports that the gold price has increased by just only a couple of dollars per ounce, or that the FTSE is down by a hundred thirty points, or that the pound is up 2 cents to the dollar. The reports can make fluctuations on financial instruments seem as if they were smooth moves, either upwards or downwards. However, the values of stocks, shares, commodities and currencies rarely are along a straight line. They change every couple of seconds. If you’re betting on the FTSE is 5540 and you bet correctly PS50 one pip on the possibility that it will rise to 5545, you may not always get PS200. Between the time it goes from 5540 and 5545 it may fall down a few times to reach 5535, or even lower. If you’ve set an stop loss set 5536 or 5535 in order to prevent losing excessive amounts of money the stop loss will be activated and you’ll be losing PS250 and PS300 even in the event that the index does rise as you had predicted. I’ve put more than 100 bets to see if I was successful when my predictions were correct. Around eighty percent I lost even though I was being right as the fluctuation caused the stop losses, even although the index did change from where it was to the direction I had predicted it would go. This leads to a bizarre scenario where stop losses could cause you to lose money while you could be winning. However, if you don’t set stop losses and things move to the opposite direction your losses could be devastating.
It draws losersIn the spread betting events I’ve been to I’ve been amazed by the sheer number of unpaid workers such as waiters, porters and kitchen staff, health assistants, and even impoverished writers like myself who choose to have the chance to try spread betting because they believe thataside of winning the Lottery this could be the only chance they can earn money. The people who participate in spread betting are betting their tiny savings from life against highly sophisticated financial services insiders with a wealth of knowledge, years of experience , and incredibly rich pockets. It’s easy to determine who will win.

Smartie or sucker?

Spread betting can be described as a “zero sum’. Instead of depositing money into an account in a bank, so that it can be loaned to companies or home-buyers and so on, spread betting does not make money. It is merely a way to redistribute money from the sucks to the smart. If you’re considering trying the spread betting game you must figure out whether you’re likely to fall into the 90 per cent of people that end up being suckers or the ten percent percentage who earn money being intelligent. It was fascinating to see that not one of the charming young people and women from spread-betting firms I talked to actually engaged in any sort of spread betting. When I finally opened an account for live spread betting and won around PS100 every day for 10 days and the spread betting business stopped me from being able to recover my losses due to the fact that they believed that I was “betting in a way that was unfair”. But if you succeed in spreading bets and win, do drop me an email. I’d like to know the best way to go about it.