When it comes to money we need to put some effort to get it and in spread betting you need to use different strategies to have a better chance to win. Spread betting is a kind of investment where people with interest in finance market get into but it is important to have some knowledge on different trading strategies to get good returns on the invested money. Many successful traders have used different strategies which have been proved to work well. However the success of each strategy again depends on many factors like your intuitiveness and market conditions. There are few well-researched and proven strategies available with which you have higher chances of winning and below mentioned are few of them.
Follow The Trend
Before you play the game it is important to understand the market and predict its performance accurately. It is also advisable to follow the market trend especially for beginners. You need to understand the underlying momentum in share prices and then workout the trading bias. You will observe that price trend is always uptrend even when the highs and lows are in extreme conditions and when this becomes a trend then it is the time to establish a buyer position. When the lower lows and lower highs set the price graphs for some time period then assume that it will continue. It is common when trends fall into place for some considerable time then they mostly continue for pretty long time period.
Reversal Trading
This is yet another commonly used strategy in spread betting. Here traders look for periods where a trend overextends itself and is ready to reverse itself. It is all about knowing when a trend reverses. Beginners usually do not use this strategies but it has its own benefits. It allows favourable points but it is hard to identify such reversing trends. You need to do market research and with the help of expert financial management service provider like ETX capital you can spot such trends up on practice.
Range Trading
This is another trend that is opposite the logic of following a trend. Identify the support levels, resistance and position entries while assuming that the market psychology will continue holding. Expert traders usually buy positions when the market price almost nears the support level and then sell positions when it nears resistance. This technique helps to stop loss placement and this is the best idea for beginners.
Breakout Trading
If you are not satisfied with the above strategies then here is a good alternative. This is a continuation strategy. The market prices are expected to extend when there is an uptrend and the market prices are expected to lower when there is a downtrend. In this strategy you need to identify the support and resistance levels to trigger new positions. But placing stops is difficult and here you need to buy high and sell low. Thus, it is a downside. This strategy is highly volatile and thus, it helps to get greater profits.
News Trading
When it comes to macroeconomic data, news trading comes to mind as this depends on this data heavily. It also depends on how well you can interpret financial news. It is definitely a difficult task to do and needs experience in the market. But it is a fact that economic data releases always in the form of news. So, this strategy can give huge profits. So, prefer to have an expert service provider like ETX capital by your side.
These strategies though sound basic and proven, it is always advised to take expert guidance and this needs so much of experience.
