Most of us think we are above-average drivers. Indeed, most of us think we are above average at most things. Especially if we are men. Although confidence is definitely a plus when it comes to spread betting, too much of it early on can be ruinous. So here are a few ways to keep yourself out of trouble while you learn the ropes.
Get practising
Most brokers will offer a dummy platform on their website. Here you can play around with different bets in a harmless environment. No real money is won or lost. Make the most of this opportunity and also any free online tutorials available.
Keep bet sizes small at the outset
Spread betting is not about identifying the single trade that will make you rich overnight. Regular trading for decent but not spectacular profits, and an acceptance that you will lose as often as you win in the early days, will serve you well.
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Use stop-losses
The principle is simple if a trade backfires you want to be able to exit it without getting hit for six. Guaranteed stops (which get you out at an agreed price) are better than simple stop-losses (which sometimes don't). Trailing stops (which protect past gains but still get you out of trouble) are also useful. Ask your broker about these.
Be realistic
To succeed, you need to be honest about when you have made money because you expected to rather than because you got lucky.
