Finspreads: Why Managing Your Emotions Helps You Manage Your Spread Betting – Finspreads

When you decide to close a financial spread betting position, how do you choose your moment?

A trader can be in control of a profitable spread bet which then starts to pull back and reduce their potential gains. Sometimes, the trader will close the trade immediately, not wanting to give away any more of their profits. This is an example of emotion making a spread betting decision.

And if, after you close a spread betting position, the market moves back in the direction you first anticipated, what do you do?

Some traders instantly leap back into the same trade, hoping to catch more profits as the market starts moving again. This is another example of emotion influencing a spread betting decision.

To a certain extent, emotions are necessary evils in financial spread betting. It helps to be worried about the risks as this means you will manage them more effectively. It also helps to be greedy enough to let profitable spread bets run.

That said, you cannot let your heart rule your head in the heat of the moment. Spread betting requires logic and consistency. Off-the-cuff decisions will not contain either of these traits.

Though you should never bring your emotions to the trading platform, some traders build their emotions into their spread betting strategy - e.g. their predetermined entry and exit points, stop loss levels and so on.

For example, you might decide how much you are prepared to lose before you open the spread betting position, and set your stop loss accordingly. By doing this you remove your fear from the spread bet, as you cannot lose more than you are willing to. Equally, if you set a limit order to the specific price at which you would like to exit the spread bet, greed should not cloud your decision-making either.

A carefully-considered spread betting strategy is a must for any trader, particularly when using a mobile trading platform. It takes time and experience, but it might just be the key to cutting your losses and letting your profits run.

To learn more about spread betting with a free Finspreads seminar, visit: http://www.finspreads.com/Learn_to_spread_bet.aspx

Spread betting is a leveraged product which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

About Finspreads

Finspreads is a leading online financial spread betting firm, offering access to thousands of instruments on the world’s financial markets. We pioneered fully interactive online spread betting in 1999 and we continue to invest in technology to ensure that our service remains amongst the market leaders.

As a result of our commitment to price transparency, trading education, and great customer support, we have attracted tens of thousands of traders ranging from beginners through to those with decades of experience. For more information go to http://www.finspreads.com/.

Contacts

City Index Group
Joshua Raymond
+44(0)20-7107-7002
joshua.raymond[at]cityindex.co.uk