Sunday, September 2, 2012

Does Luck Rule in Spread Betting?

Luck has no room in financial spread betting. This is because winning or losing in this form of investment does not rely on gamble or fate. Instead, it relies on facts, objective data and research. Hence, the answer to the question if luck rules in this realm would be a big NO. After all, who would need fate and luck anyway if a trader can be more scientific and intelligible? Instead, what traders need are three (3) things. These are about having a good foundation and skill, as well as patience along with a goal and even science with perseverance.

Foundation and Skill

First and foremost, any trader should have a good educational foundation in order to have the basic and most fundamental ground in understanding financial jargons. This is because traders will experience lots of these jargons every single day. Hence, they need to familiarize themselves to these as early as possible. It would be great to have a formal education tackling the basic terms in financial economics, specifically investment forms or platforms like spread betting.

However, educational foundation will not suffice at all. This is because there should be an application of that foundation in the actual world. Hence, this is where the right skill comes in. Of course, a trader hones this through trainings and experience. It is in this regard that new traders should have the time to open a trial betting account before they enter the actual world. This is similar to having an on the job training before the real job.

Patience and Goal

Secondly, on the other hand, any trader should have a goal that they will achieve to reach. Without this, they are like waking to nowhere without any final destination. Having this will bring the trader motivation in every step of the way. This is its primary purposes. It is in this regard that trader should also have some plans of action that they will follow in achieving such goal.

However, this will also require patience. Lots of traders fail along the way because they lose their patience in the middle of the trading day. Well, this is maybe because they get too excited to achieve their goal, most especially when they are already few steps away to finally attaining it.

Science and Perseverance

Thirdly, science should always be the basis of any decision in financial spread betting. This is the reason why traders always use charts, graphs and trends in order to understand the behavior of the market. These will consequently be their bases for researches and studies that will serve as their guide in making sound investment decisions. However, these would all be futile if they will not persevere on it. Science must always have praxis in the real world.


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