Forex Spread Betting

strangemartian

Anyone doing this successfully. I have been playing with it for the last 3 months for minimal amounts with mixed results although most of this was finding out strategies and what time frame to work with.
Am now using 4 hour timeframe and have some strategies in place which work and have been backtested and am about to take the plunge and up the stakes to bigger bets.
B4 I do, anyone have any good advice? I see this as a very good investment if it is done the correct way with the right money management rules in place and see no reason why you cannot make 20 pips a day which would make you £1000 a week tax free.
Maybe wishful thinking but it can be done.

tom188

I don't think spreadbetting can be considered as an investment. Certainly not one to be recommended.

It is purely gambling where you can lose much more than your stake. Most spreadbetters lose money.

Therefore I think this post would be better on the gambling board, or maybe on the motley fool.

strangemartian

No different than trading forex for real apart from you pay no tax on any profit and trading forex is classed as an investment??!?

tom188

True, but I don't think trading forex is a good idea or an investment for the amateur either. If you know what your doing, fine, but otherwise its not a wise thing to do with your capital. Its certainly not an orthodox investment that would be recommend.

strangemartian

I agree which is why I have been demo trading and then trading with 50p stakes till I am sure what I am doing. Have scoured every resource available on the web and bought several training courses and am confident about making some real money now.
Was just curious if anyone else had any experiences they would like to share.

tom188

OK well if you think you know what your doing, then go for it. My concern is that when city institutions get it wrong all the time, with their resources behind them, is it a good idea for the private investor. Forex is incredibly volatile and you can lose large sums of money very quickly. Daily volatility can be as high as 30%. Just dont say you havent been warned.

strangemartian

Thanks for the warning but I know the risks involved and have a strict money management strategy in place which is the golden rule most people forget about if you want to succeed.

tom188

OK then i wish you well. One last thing. Just remember that stop loss orders are generally not guaranteed, and the market can move past the level youve set before you can get out.

achilles

Have a look at https://www.t2w.com There's tons of advice available there

sfry

Hi, have just come across this thread and thought I would reply. I have been spreadbetting forex for nearly two years now having done a vast amount of study of technical analysis and I spend all day watching the markets. First of all do not even think about trading at £10 a pip when you have been trading for such a short time but stick to say £1 a pip because, unless you have a vast account, each trade of £10 a pip would be risking far more than the recommended two and a half percent of your total capital you should be risking on each trade.

I note you are working from four hour charts but would recommend that you reduce your timescales as you will need a higher stop loss for a four hour chart than for a lesser timescale so that again could upset your money management.

All the best but don't look on it as an investment - each trade simply a case of weighing up all the probabilities and trying to get the probabilities as much in your favour as possible.

lowbrim

Good way to test your strategies is on FX Turbo they have a weekly competition costing £5 and you play against the market prizes vary weekly but normally you get £100,000 to invest on currencies and if you make £400K and you get your money back and prizes go up in increments up to £1000.

Low risk fun and it tests your strategies.