TIME FOR SPREADBETTING?
My new book - The Naked Trader Guide to Spreadbetting - has just been published.
And that opening just sounds like I'm using this column to plug my new book.
Which, of course, I am. Come on, forgive me, you'd do the same wouldn't you, if it was your book. Yes, you would. Admit it!
When the publisher got me drunk over lunch and somehow I said yes I thought in my mind it would be fairly easy to explain how to spreadbet to beginners.
It was only when I got down to writing it I realised it wasn't so easy. In fact a real headache because spreadbetting has so many aspects to it that I found I had to bring to the attention of readers.
An even bigger headache in that it was like having homework to write every night and honestly I was glad when I finished it. But in the end I am pleased with it and I really hope it helps new spreadbetting punters.
I received lots of horror stories for the book from people who read my website (www.nakedtrader.co.uk
) (plug 2!) . There's a whole chapter of these and the chapter itself contains so much helpful info - things that have gone wrong or right for real people.
The main thing I realised from the horror stories was I must warn beginners of the silly mistakes that can be made with spreadbetting - little mistakes which could turn a potential winning account into a losing one.
So the book as a whole is more about the things that can go wrong!
The biggest thing that can go wrong with spreadbetting? I reckon it must be placing a stop-loss in the wrong place.
The most amount of stories I got was aggrieved tales. Lots of wailing about "The spreadbet firm deliberately stopped me out and I lost, the rotten stinking ******* ** **** **********!"
Conspiracy theories about of shifty blokes in dark corners deliberately taking out stops. Having visited a number of firms it's not true - it's a shifty computer that takes you out!
The lesson about stops is easy. They should never ever be set too close to an entry price.
It's mad for example to try and buy the Dow Jones at say 10500, setting a stop loss just 30 points away. The Dow is so volatile. That stop is too tight. A losing bet from the moment it was placed. Oh, and that was a real bet made by someone!!
On shares and indices my stops would be well away from the current price. One thing bettors forget is that at 8am spreads can be wide at the start of the day and stops can be taken out on a silly spread.
It's always worth going through your stops every evening to check you won't get stopped out at 8am.
What else is in the book? Well, real trades I made, win or lose. How spreadbetting needs tight discipline and a cool head. How to consider charts though there is no TA taught in the book.
If you're an absolute beginner how to place a trade, what sort of trade to place and good places to put stops. Among loads of other stuff. Tales of visits I made to spreadbet firms. The top mistakes made by newbies. And my top ten strategies to make money out of spreadbetting.
The conclusion really is more people lose than win at spreadbetting but with the right mindset and discipline you can win. And even win big and your account will never be shut down!
If you buy it I hope you enjoy it - if you think it's pants, well at least you may be able to get a bit of money back by selling it on ebay. So don't spill any beer or jam on it.
Oh, ps, If you want to buy the book you can buy it here:
(Or go to the shops or anywhere else you like). Happy spreadbetting and may your accounts blossom.