Yet another thing…(advice for spread bettors and other traders)

Just like the contribution from Spread Co, the following answer to my “one more thing” question didn’t meet the deadline for the first edition of my Better Spread Betting book but is sure to be included in any subsequent edition. In the meantime, here is the one piece of advice (if he could give only one) that David Jones, Chief Market Strategist at IG Index and author of the book “Spread Betting the Forex Markets would give to a new spread bettor:

It’s a misconception that spread betting – and trading in general – is all about day trading, glued to the screen around the clock agonising about every one point move up in the FTSE or one penny move down in the price of Marks and Spencer. It doesn’t have to be that way – most of our clients have normal jobs where they can’t watch the screens all day long.  I would suggest it is easier (I would never say easy) to try and forecast a market over hours / days / weeks rather than seconds and minutes.  You don’t need to sit there jumping in and out of the Dow 50 times a day. There is no reason why you can’t run your trades over a longer term time frame – using wider stops to give the market time to move in your favour and adjusting your bet size accordingly.  I think this “bigger picture” approach to the market can help resolve some of the stress and frustrations encountered by many of us when we start.

Thanks for your contribution, David, which any reader of my book will know corresponds with my own views about longer-term spread betting.

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Disclaimer: this posting is for general education only; it is not trading advice.