Spread Betting Guide

A Strategic Approach to Spread Betting

Spread betting strategies icon

There are many different approaches to spread betting and many different strategies. Some work well and others do not. How does the spread bettor decide which strategies will work best for him? There are several ways to accomplish this goal but as with any walk of life, the short cut is to find someone who is already producing the results that you want, find out what that person does to accomplish those results and then copy them.

This is in fact exactly the reason why we formed LS Trader almost 6 years ago. There is so much conflicting information and varying opinions on what works and what does not work in the markets, even coming from so called experts, that the novice can easily get lost. Even a search of bookstores will show hundreds of different trading books and approaches and many of them contradict with what another expert in a different book has written! A service such as LS Trader can provide the solution.

Strategies Based on Years of Experience & Testing

The reason that services such as LS Trader can help the novice and especially the advanced trader is that we have been trading and studying the markets for a long time and we know what approaches work and which do not. We have discovered this by extensive testing using computers to test out different trading approaches and indicators against real market data. Doing this can show which approaches are profitable and which are not. It may be surprising to discover that most information as to what is supposedly profitable in the markets is actually very wrong.

Spread betting strategies that should be avoided are those that encourage the trader to overtrade (i.e. day trading), trade counter to the market trends, such as trying to predict tops and bottoms, and those that do not include proper risk and money management.

Going With the Market Trend, Not Against It

The most successful spread betting strategies will be those that help the trader to trade in the direction of the market trend rather than against it, and help him to let his winning trades run and cut his losses short. Of course, all successful strategies should include risk control and money management. Even the best trading approach will have losing periods so it is essential to control risk so that you can ride through the losing periods without losing too much capital so that you are still around to take advantage of good trading conditions when they return.

At LS Trader, our system and service is complete and is the product of years of research. The strategies that the system is based upon are those that our extensive testing has shown to be the most profitable over our extensive real market database that dates back to 1982.

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