Many of us have dreamed of leaving an unfulfilling job for a position associated with more gratification. Whether for personal or professional reasons, you could very well be considering such a life-altering venture.
However, you need to be financially prepared for what might very well represent an uncertain future. One of the best ways to create a short-term nest egg before abandoning ship is through the use of an effective spread betting strategy.
Let’s quickly examine how you will be able to place yourself in a safe position so that the coming exodus is not akin to cutting off your nose to spite your face.
Choosing the Best Trading Platform
This is arguably the most important point, as even successful approaches to spread betting will matter little if you do not have access to the latest trading tools.
The great news is that there are many platforms online to start spread betting. CMC Markets is one of the leaders in the space and their 30 years of experience explains why. Award-winning software applications, full mobile compatibility, an excellent selection of underlying asset classes, and professional trading instruments are a handful of amenities that you will be able to access with the click of a button.
Be Realistic with Your Short- and Long-Term Targets
Many traders spend half of the time with their heads in the clouds.
They are so focused on lofty aspirations that their strategies are entirely unrealistic when compared to their goals. If you are able, to begin with a firm footing, the chances of financial independence are much more likely. Some of the issues which should be addressed include (1):
- Goals within specific time periods (days, weeks and months).
- The maximum loss that you can endure during a worst-case scenario.
- Any entry and exit points.
- The largest spread that you are comfortable with.
Examining these parameters will provide you with a greater level of clarity; ideal when making snap decisions.
Leveraged trades have enjoyed a fair amount of bad press in recent years.
This is largely the result of investors who were unaware of the risks involved or who believed that they were immune to such volatility.
However, these positions offer a number of benefits. The most obvious is the ability to amass a substantial return while investing only a fraction of the end result.
Still, there is always the danger of what is sometimes referred to as “over-leveraging” (2).
Most experts feel that leveraged trades should represent no more than 0.2 percent of your total spread betting capital. Even if a loss occurs (which will undoubtedly take place from time to time), you will not be forced to cease trading entirely. While such a proportion might appear to be quite small, let us never forget the power of leverages in relation to profit margins.
Leaving your current position takes a great deal of courage. The advice mentioned above will help you discover a firm footing as well as a sustainable source of income through the power of spread betting.