Planning Your Finances And Trading For 2010
Many people are increasingly thinking about taking control of their finances; especially
in the light of the positives and negatives drawn from the economic crisis.
Tax efficiency, opportunities in fluctuating markets, diversifying existing investment portfolios and planning investments for the future are all priorities. Many investors looking for quick and simple access to world markets are turning to spread trading.
Any investment provides opportunity for making a loss. Share trading, buying a house and exchange traded funds can all lead to losses.
With spread betting, these losses can be larger than your initial stake. On the other hand, many potential benefits exist.
The instant access to thousands of financial markets is a key feature. You can trade the level of a stock market, like the Dow Jones, DAX or FTSE. You can also trade currency markets, like the Dollar / Yen rate, and, naturally, you can spread bet on world shares.
Most firms let you trade over the phone and online. Some will also offer trading applications for your mobile phone.
Spread betting companies are increasingly offering a wealth of trading data to their clients. Naturally, you can get live prices and candlestick charts but you can also get Technical Analysis, Events Calendar, Company Specific Data and Market Heat Maps.
There are a number of regulated firms and they tend to offer thousands of international markets. Naturally, companies like FinancialSpreads and IG Index offer the normal benefits of spread betting including; trading outside market hours, no brokers fees, no commissions and tax free trading*.
Whilst
spread betting offers a wide range of benefits, it is also important to remember the potential drawbacks.
Spread betting carries a high level of risk so you should only speculate with money you can afford to lose. Like the adverts say, before trading, please ensure that spread betting matches your investment needs, make sure you familiarise yourself with the risks involved and, where necessary, seek independent advice.
Is there anything more to think about? Many investors have developed their own strategies for trading and are often happy to share these tips. Here are a couple of the ideas that are more commonly employed.
Stick to the markets you know. If you know little about the Crude Oil markets but have a good understanding of the Sterling/Dollar markets then you are probably best off trading Sterling/Dollar and leaving the Oil markets.
Using a Guaranteed Stop Loss can help protect your trades in highly volatile markets. If a market moves quickly against your position a Guaranteed Stop Loss can automatically close your trade and help you limit your losses.
* Tax laws may vary if you live outside if the UK or Ireland and can vary from time to time.
by: Thomas Bainbridge
Vertex, Vertexone Peep Into Share Market In India Intrust Advisors - Reaching Client Objectives Using Exchange-traded Funds Avoid This Mistake In Your Retirement Account Investing Foreign Currency Service: What You Need To Know About Foreign Currency Services Immediate Annuities.... Need Money Now vertex Making Money Even When Markets Are Down Michigan Stop Collection Lawyer - Defending You How To Pick Out Criminal Justice Lawyer The Role of a DC DUI Lawyer Should you Hire a DC DUI Lawyer Diversification Is Investing That Yields Greater Safety How To Choose The Best Personal Injury Lawyer