It undeniable that spread betting comes with risks, and is not something to approach without caution, but it’s increase in popularity warrants a closer look. Requiring only a minimal starting amount in return for investment portfolio growth is cited as the reason more traders are dabbling in spread betting, however as it’s essentially a form of gambling there are risks involved which some argue outweigh the potential for profit. We’ll look at these both in detail.

Spread betting became popular after the financial meltdown of 2008. Following this, investors wanted to profit on the stock market but with the possibility to walk out if necessary. They found this in speculating the rise and fall in the market price of stocks, with the ability to gain profit on correct predictions. Thus, spread betting came to be what we know it as today. If you predict the market correctly, you can stand to make large profits – and quickly.

Spread betting allows you to speculate on the movement of a particular asset (for instance currency pair) without actually owning the asset. The trader speculates on whether they believe a particular market will rise, at which they buy (or ‘go long’). Should they be right in their predictions their profits will rise with any increase in value. Similarly, if they believe a market to fall they sell (or ‘go short), their profits will rise with any fall. The risk lies in the potential for . While you’re only required to put forward a relatively small deposit (due to it being a leveraged product), should the market go against your predictions you can stand to lose far more than your deposit, making it risky.

The positives and negatives of spread betting, in detail

With spread betting, traders are able to invest in Forex currency pairs, commodities, shares, indices or equities, as well as having access any market globally to speculate on prices. As well as these considerations the positives aspects of spread betting mainly fall to not having to invest initially a large deposit, alongside not having to actually own the asset. As already discussed spread betting is a leveraged product, and so allows you to open positions with a relatively small deposit (in relation to potential profit). This is helpful to those who may not have a large sum of money to start trading. However, this also contributes to the negatives, as it may tempt individuals who are not in a stable financial position to stomach a loss, particularly as you can stand to lose far more than you deposit. As well as this, being tax free (due to it being classed as a form of gambling) and small margins make it an initially more affordable style of trading. Although spread betting can be hugely profitable for some, due to the high risk factor it is far better suited to a seasoned trader who will be able to make rational and well informed bets, and can afford to make a loss if needed. This also applies to the possibility of an account close out, whereby should you not have sufficient funds in your account to cover a loss there is the risk that your positions will be closed automatically and you will lose any profit (alongside investment) you may have made.

How to approach spread betting

The most common reason behind people’s vulnerability to losing money in spread betting is down to them embarking on it naively without an in depth understanding of it or sufficient knowledge of their chosen market (or asset) prior to starting. It’s important to become fully acquainted with what items are on the market and what factors affect the fluctuation in prices. While may not own any assets in the market, you’re still required to learn how the stock market works and keep up to date with anything that could influence a rise or fall in price. One effective way to learn is to open a demo account, which are often offered for a trial period free of charge by reputable brokers, such as CMC Markets. It’s advisable to test your skills before you invest money in spread betting.

As previously mentioned there are approximately four different stock assets available to bet on, namely Indices, Commodities, Forex, and Equities. Though it’s possible to move from one asset market to another, it’s good to find where you feel at home. This means choosing a commodity that you’re comfortable to trade in, for instance either Forex pairs or Indices. This is likely to yield better success as you have to be conversant in all aspects of each asset to successfully trade in them, which means taking the time to study each asset and the various factors affecting its price changes. All assets behave differently in the market, and will become profitable at different times. So as a beginner, start with the assets you are comfortable in and that are easy to understand. Many people choose Forex pairs since they are a popular asset in the market and are easier to master. Start with placing small bets – particularly important for a beginner – and never bet more than you can afford to lose.

It is entirely possible to succeed at and profit greatly from spread betting, but only if you posses the necessary skills and have the relevant knowledge to accurately predict the rise and fall of the market.

Of all the investments in the world, almost none is as tough, durable or enduring as gold, which is why I hold this precious metal in my portfolio. I’m not talking about the securities associated with gold or the stocks of mining companies, but physical metal. In particular, I use Karatbars as a way to leverage the benefits of precious metals, which are listed below.

Harald Seiz: Inflation Hedge

The value or purchasing power of money is constantly fluctuating, which can make it very difficult to maintain wealth. I use bullion as a way to protect against wild currency fluctuations. Given that Mr. Harald Seiz has offered the world the Karatbars, which contains an easy to store and use bullion bar, I can keep physical bullion at the bank or at home. My ability to hedge against inflation with this investment vehicle is both versatile and flexible, which is exactly what I need.

Wealth Preservation with Gold Ingots

In times of financial calamity, asset values can swing wildly and currencies can become worthless. During these times, it can be hard to find an investment vehicle that maintains its true value. I choose to hold onto the Karatbars for times such as these. I do not want to lose all of the wealth I’ve accumulated, just because the financial markets become tumultuous. Through the creation of the Karatbars, Mr Harald Seiz has allowed people all over the world to preserve their wealth for future generations. I plan on passing down my bullion in perpetuity, for my loved ones.

Proven Track Record

Precious metals have maintained their value throughout time, giving them a proven track record as a successful financial instrument. Paper currency is okay, but it has a tendency to lose its value from time-to-time with the changing of governments. Precious metals such as gold have an intrinsic value that make them a worthwhile instrument for long-term wealth generation and for stable financial well-being. I prefer instruments with a past that can be verified.

Harald Seiz and Karatbars: The Answer to Inflation

Bullion is one of the most reliable investment vehicles on the planet, because it has retained its value since the early days of civilization. In addition to being a hedge against inflation, gold bullion is tangible representation of wealth that doesn’t tarnish over time. I hold Karatbars as a way to leverage all the benefits that gold bars has to offer.

I had the fortunate opportunity to come across the Warrior Trading community after countless hours of scouring the net for a swing trade focused training program. After doing some background on Ross and the Warrior Trading organization, I discovered that it was comprised of a small group of very veteran traders. There are four primary traders that run the chat room and all come from various areas of education and Wall Street backgrounds bringing a great diversity and balance to things.

After evaluating the transparent performance logs and trade alerts for swing trading, I decided to take the plunge for the Swing Trade and Options Course. It was priced at $799 and when I inquired, I received a 15% discount code. Jeff is the trader who runs the swing trading program at Warrior Trading. He is the most accessible and available professional trader that I know. I had several email correspondences with him regarding the course and some of his trading knowledge and he got back to me inside of a few hours each time, always with thorough and honest explanations. Again, amazing accessibility.

Swing Trade Strategies

The swing trade and options course is 5 days long, takes place after the market closes and lasts at least an hour each day. The course into great depth the handful of trading strategies that are used at Warrior Trading. The curriculum is regimented and well laid out. There is a course book in PDF format so that you can follow along. The course covers everything from basic options trading to options strategies, risk management techniques and how to read SEC filings and build scanners to find trades. A major bonus of this course is, when you purchase the trading class, you get $1,000 worth of custom swing trade scanner parameters for free. These are the same scanners that Jeff uses to find his trades. He also goes over how to use, configure and understand their results and build a strategy around the ideas that the scans alert.

Why Swing Trading?

I am a full time corporate man and have little time for learning to trade full time right now. I have always been fascinated with part time trading, and swing trading fits the bill. There are so few choices for swing trade courses online, and none of them are as valuably priced as the course at Warrior Trading. As a student, I also get lifetime access to all future live courses as well as historical access to the previously archived courses. I can honestly say that after taking the course, I look at swing trading in a totally different light. There is no reason to overcomplicate trades with a plethora of indicators and newsletter pump and dumps. Instead, Jeff’s course taught me to find my own trade setups and showed me how to identify entry and exit triggers based on technical and fundamental analysis.

Interestingly enough, I discovered that Warrior Trading also offers a breaking news service for traders and investors and make it available to people for free. The news contains relevant information on hot stocks that are moving and usually, the same stocks that the chat room trades that day.

In summary, the chat room, news outlets and trade alerts throughout the day via text, email and live chat are consistent and transparent. Never have I been left to wonder where to enter and exit a trade. Sometimes, I even get better entries than the pro traders themselves. I have not yet take or inquired about the day trade course, but when I have the time, it is also something I would like to pursue. Ross and Jeff place a huge emphasis on quality trading and risk management and I am certain that is what it takes to be a successful trader long term. For the low price point to join the monthly chat service, you also get the swing watch list and alerts. In all, if you can’t afford the $99 to try the chat for a month, you probably shouldn’t be trading. I hope this review helps someone steer their way to honest and meaningful education from people who actually do care.