There are many strategies that define how to trade forex but not many of those strategies include spread betting strategies which is the manipulation of your spread betting platforms to increase profit potential and limit losses. Different spread betting platforms have different features and methods of using their platforms so in this article I am going to outline a few strategies that I use with my particular spread betting platform.
It is important not to confuse spread betting strategy with trading strategy. Trading strategy is used to determine when to enter and exit a trade where as spread betting strategy is the strategy used within the platform used to place the bet once in the trade. Spread betting strategy is such things as the amount of stop loss you wish to use or how much you are willing to lose if the trade goes against you.
You can always enter and exit a trade with your spread betting platform manually but it is recommended that you never enter a trade without a stop loss in place because of the volatility of the forex market. It is the moving of the stop loss once in the trade that is good spread betting strategy. We all know that like stocks and shares the forex market moves in waves and whichever trading strategy you use to enter the trade it is just as important to have a spread betting strategy to implement as part of your trading plan.
A popular method of spread betting strategy is to move your stop loss up to your entry point and to eliminate the risk of losing any money. The problem with this simple strategy is the market often will take a reversal past your entry point before again pushing in the right direction. Although not making a loss profits will also be hard to come by. You can expand on this strategy by taking out 80% of your profits on the primary push and leaving 20% risk free or with a slightly bigger stop loss.
There are also trailing stop losses available on most spread betting platforms, these tend to work better with the longer term trades. As previously mentioned the market moves in waves so you would need to allow for this in your trailing stop loss, that will move up to a pacific distance from the price that you requested. A good example of this is when you enter a trade in the previous example and the trade keeps running in your favour, it would be a good spread betting strategy to eventually set a trailing stop loss of 100 pips.
Adam had been trading forex for years with little success. Adam originally had no experiance of the forex markets so he joined Colin Atkin’s private members club. Colin is a professional trader who shares his trading live, all you have do is watch & copy what he does and take the profits. Since Adam joined Colin he has had the cash to invest in other business opportunities.
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