Improve Your Spread Betting With These 5 Proverbs

LONDON, October 8, 2010 - Practice makes perfect

Financial spread betting providers such as City Index (
www.cityindex.co.uk) offer a comprehensive range of educational
resources to help you to maximise your trading potential. Spread betting
seminars, webinars and education guides enable you to enhance your financial
knowledge, while lower minimum spread bet sizes and spread betting demo
accounts let you build up your spread betting confidence gradually.

Look before you leap

Always, always, do your research and set out a clear spread betting
strategy covering price objectives, entry points, exit points, prices of
related markets, chart analysis, stop losses and limit orders. Then simply
stick to it. Trading with a well thought-out spread betting plan is the
solution to decisions such as when to cut your losses and when to let your
profits run.

Knowledge is power

With such a wide range of spread betting markets (
www.cityindex.co.uk/range-of-markets/), from currencies and
commodities to shares and sectors, it is important to spread bet on the
markets that you know and understand. By the same measure, knowing what is
going on in those markets at any given time can prove invaluable for your
spread betting. With the advent of mobile trading platforms and iPhone spread
betting (
www.cityindex.co.uk/trading-platform/iphone-trading-platform.aspx),
you can keep up with price movements throughout the day and act on them in
real-time.

A penny saved is a penny earned

Ultimately, financial spread betting success is as much about minimising
your losses as it is about maximising your profits. Most traders at some
point in their spread betting career make at least one losing spread bet; the
key is to ensure that your spread betting profits outnumber your losses. With
this in mind, put in place stop losses to close losing spread betting
positions once they pass your predetermined trigger value.

A fool and his money are easily parted

Remember, spread betting is a leveraged product (
www.cityindex.co.uk/spread-betting/what-is-spread-betting.aspx),
meaning that it allows you to control a much larger position than your
deposit would normally give you in the underlying market. The advantage of
this is that your winning spread betting trades can return much greater
profits. However, the main risk is that your spread betting losses can be
magnified in exactly the same way. If you make a profit, resist the
temptation to spread bet again too quickly and give it straight back.

Learn something new about spread betting at
www.cityindex.co.uk/learn-to-trade/seminars.aspx.

Spread betting and CFD trading are leveraged products which can result in
losses greater than your initial deposit. Ensure you fully understand the
risks.

Spread betting and CFD trading are exempt from UK stamp duty. Spread
betting is also exempt from UK Capital Gains Tax. However, tax laws are
subject to change and depend on individual circumstances. Please seek
independent advice if necessary.

Contact: Joshua Raymond, City Index Group, Tel: +44(0)20-7107-7002, Email: joshua.raymond[at]cityindex.co.uk, Jonathan Smith / Alex Nekrassov, New Century Media, Tel: +44(0)20-7930-8033, Email: jsmith[at]newcenturymedia.co.uk / alexnekrassov[at]newcenturymedia.co.uk