Boost your profits with multiple positions in the same market

In spread betting, the most secure gains are made by trading the intermediate swings. But the really big money is made by riding a long trend. Here's one simple strategy to get the best of both worlds.

When trading with a small account, you are restricted to trading a single position in any market at least, if you want to have any chance of preserving your capital.

Let me show you what I mean. Let's say you have a £4,000 account and you want to trade theDow Jones Index. Using the 3% rule, your maximum risk on a £1 bet is £120, and on a £2 bet it is £60 (60 points).

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.