Day Trading with real leverage
Many people are very apprehensive when it comes to investing in anything with the stock markets, currencies, foreign exchanges commodities etc. Are more apprehensive when betting says, because they assume that bet involves risk without knowledge and sets place their money in a random result.
They are right.
But only in the sense that contractual bet or betting on sports, Casino, is purely a game in which money is won by unique opportunity.
Now comes the real subject of this article, and this is financial Spreadbetting.
Yes there's that Word again, betting.
But, please take a moment to read this article and make up your mind if bet is the correct word, by comparing two traders, one buy shares in the conventional manner, and one using a platform financial Spreadbetting.
Situation A)John has read the FT, read countless financial blogs and read about investment forum with everything that happens at the time, and all indicators point that BP has enough oil in the reserve, even before the oil slick, that will do a slow and steady heel back to close to the original value share.
Shares is 3.45 per share at the moment. who buys 1000 shares, investing a total of 3450. over the next two months, the price increases share in 4.28, an increase of 83 p, therefore, the initial investment is now worth 4550, which is a 830 profit (excluding broker fees and other related fees if he should decide to sell).
Situation B)Simon has read the exact same materials but decides that leverage on BP rather than purchased shares themselves will give a greater yield.So he see that prices of the shares is 3.45 a share and BUY him a bet of 20 one point.
After two months have passed, the share price is 4.38, an increase of 83 p or 83 points.20 a point, which is a profit of 1660.
NB: but before this, Simon had a stop loss on investment in 1000 was very low, i.e. profit when the value was in 3.95.
830 vs 1660 is a no-brainer.
So I still call financial spreadbetting a bet; the investigation of these was the same, and most importantly, the RISK was the same, with the inclusion of stop-loss. this specific financial spread betting example, the loss of braking mean that there will always be a certain amount of profit, even if the share price dropped. beauty is financial spreadbetting, and why I believe, with adequate training, to make a living financial spreadbetting. All the risk is mitigated, and any potential losses are all controlled, so too have never lost a LOT LESS, and invested because financial spreadbetting, you don't own the shares.
And the final aspect that eventually this bag for you; Taxes are not to blame for profit on financial spreadbetting in United Kingdom, as this is considered a bet; for now.
Imagine situations you gave, but with 10 point stocks, increased by 2, 5, 10, ad 20 bets per point. This means 20-200 per stock, and one day trading day may invest into three or four.
So you can see, day trading, and making a very real daily income is possible, it is only to make a proper investigation, and always, always, with a stop-loss to mitigate any losses.
Go open Simulator spreadbetting account with a fake 10, 000 and try it, and I promise that you'll see the real way to make real money using genuine, free and open knowledge to educated decisions and substantial profits.
For your business success
-B Parwez.
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