Archive for

Ten Tips For Betting on The Stock Market

Buying and selling shares through a stockbroker is not the only way to play the stock market. Spread betting allows you to gamble on the movement of indexes, such as the FTSE100, or on the price of individual shares.

The bookmaker quotes you a price for a certain date in the future and you bet on whether the actual share price or index will be higher or lower. You can also gamble on exchange rates and commodities.

Financial spread betting started in the 1970s when investors wanted to speculate on the price of gold without having to find large amounts of money to buy the metal.

As with any form of investment, it is important to be aware of the risks associated with spread betting. Volatile market conditions can bring substantial gains or losses, so bookmakers advise their clients to speculate only with money they can afford to lose.

Is spread betting right for you? And what are the important points to consider?

1. What is a spread bet and how does it work?

You contact the bookmaker and ask for a quote on a particular index or share. For example, you may ask for the FTSE 100 in June. You will then be quoted a spread of, say, 6,870 to 6,880. If you think the market will be lower, you sell points. If you think it will be higher you buy points. You then bet anything upwards of Pounds 2 a point. If the market closed at 7,100 and you had bought at Pounds 5 a point, you would win Pounds 1,100. If it closed at 6,800 you would lose Pounds 350.

2. What advantage do bets have over shares?

You do not pay tax on any winnings and there is no stockbroker’s fee or stamp duty.

You can also spread bet on shares that have yet to float, such as internet firms.

For example, IG Index initially offered 350p-360p for, but revised the spread sharply upwards when investors bought enthusiastically. At one point the spread was quoted at 620p- 630p before settling back to 570p-580p last week.

The other big advantage is that you can make much more money from rises or falls in share prices.

For example, if a share costs Pounds 10 and you bet Pounds 10 for every penny increase, you would make Pounds 50 for a 5p increase in the share price.

3. What can I bet on apart from shares?

You can speculate on anything from sport to politics. There are a whole range of innovative bets, such as the number of corners in a football match or the number of days that William Hague will remain leader of the Conservative party.

4. How much can I bet at any time?

The minimum bet is typically Pounds 2 a point, but the maximum can run into thousands of pounds a point.

Bookmakers either grant you a line of credit or ask you to deposit money.

5. Is there a limit on how much I can lose?

Bookmakers offer stop-loss facilities for those who want to limit their liabilities. You specify a level at which you want your bet to be closed.

For example, if a spread for a share was 150p-160p, you may choose a stop-loss price of 120p. At Pounds 10 a point, you would lose no more than Pounds 300.

But the bet is automatically finished if the stop-loss price is reached – even if the share or index subsequently recovers. Each bet is also monitored in case potential losses exceed the credit limit or the amount held on deposit. The bookmaker will alert you to any dramatic movement in prices. You can then close your position.

6. What can I do if I see that my bet is losing?

Although you may have bet on a price some way into the future, you can take your profits or cut your losses at any time. You contact the bookmaker, get the current quote and calculate your winnings or losses accordingly.

In the Footsie example, if you saw the market rising, after backing it to fall, you might decide to close your bet early. The bookmaker has in the meantime updated its quote to a spread of 6,910- 6,920.

You close the bet by buying 6,920 at Pounds 5 a point, which means there is a points difference of 6,920-6,870. Your loss, therefore, is Pounds 250. If the market rose dramatically before the end of your bet and you wanted to take your profits before any subsequent fall, you could close the bet at the current price and walk away with your winnings.

7. Will the bookmaker offer me any advice?

No. You have to back your own judgment.

8. Is spread betting suitable for everyone?

The bets can be useful for cautious investors as well as speculators. Someone with money invested in the stock market could bet that the market will fall, effectively insuring their portfolio at its current level.

9. How do bookmakers make their money?

The bookmakers build their profit into the dealing spread. They protect themselves against the risk of losing bets by hedging – buying options to cover potential losses. They claim it makes no financial difference whether people win or lose, so they prefer people to win and keep betting.

10. How do I get started in spread betting?

You contact a spread-betting bookmaker and open an account. Bets are made over the telephone and, increasingly, over the internet. You will receive written notification of every bet you make.

What’s the Best Stock Market Training?

Millions of people want to make money in the stock market and enjoy the riches of making some great investments. And it is possible if you take the right steps. As you can imagine, you’ll need the right stock market training, a little bit of luck and the ability to make good decisions.

Before you start on your journey to beat the market, make sure you know how much time you have to put into it. If you only have an hour or two each week, then you’re not going to be a day trader! If you have hours each day, then you can be a more active trader which may change your strategy.

You should also make a point to pick out what area of the stock market you want to focus on. For example, maybe you want to focus on stocks in the financial industry, or maybe energy stocks.

You could also consider investing in a certain group of stocks such as small-cap or large-cap stocks.

Whatever you decide, it’s a good idea to focus your stock market training so that you can develop a strong knowledge of a certain area. Of course you can change this if you lose interest, or even develop expertise in more area than one in the long-run.

I strongly suggest trying to read stock market related news on a daily basis if possible. You definitely want to keep in touch with the markets so that you have a feel for what’s going on. Make a point to read newspapers, reliable blogs and finance related websites.

I also like to have CNBC or other market related TV channels on in the background if I’m at home. It’s easy to put it on while I’m making dinner or doing other things. Even without giving it your full attention, you will pick up little useful tidbits.

While you’re learning, it’s not a bad idea to invest using a combination of your picks and following the picks of an expert. Of course you’ll want to make sure the person you are following has the right type of background to be making recommendations.

Doing this is another form of learning as usually you will be able to gain insight from the experts picks and see what they look for.

The stock market isn’t a guaranteed way to make money, but if you go about it the right way and get the proper stock market training, you can enjoy some tremendous profits.

Stock Market and Stock Trading Factors or How to Get Success in Stock Trading

Want to jump in stock market, there are some factors which should be consider first before jumping in stock market. First you should know the basics of stock trading. What are stock trading and how much minimum investment it requires for stock trading? Proper research is needed while making any investment in stock market. You should learn about the company in which you are going to invest. Search about companies business in which it is involved and what types of business carried out by that company.

If you are satisfy with your research and found profit in investing in that company. It is safe to invest otherwise not. In business there is always a risk factor, so be careful about companies and market trends to maintain your profit.

One always purchases stock to earn profit. One gains when he purchase stock at low cost and sales when the market is up and the stock prices grows. Make stock market research and decide which share is profitable one, which company can grow in future and which can down. Accordingly plan your stock market investment.

If you have lots of share of a company and the company is growing consistently at a normal rate then there is no need of concern. On the other hand if a company growing fast at abnormal rate then search out the factors and investigate the reasons of its success. If you find positive results then further investment in that company will be profitable otherwise it may be loss. Stock market of India is consistently growing up and investors are earning with both hands. Read Stock Trading Tips

Let’s take another example where you make huge investment in a company and the company suddenly goes down. In this case most of the investors take quick decisions that may put them in trouble. So don’t make any big decision without proper awareness and investigation about the problem. First find out the correct reason behind it. Read More Online Stock Trading Tips

Undoubtedly stock trading is a good way to earn money, where you need not to devote much time or you need not to work. It is side business and also involves risk factor. It requires initial investment to get success. Stock trading is one of the best ways to make money but require some precautions. Find more about stock market of India or Indian stock market. Other ways to make money online without any investment check it out and make online money.