Nobody gets into spread betting because they don’t want to make money. But not everybody knows how to succeed. This is because of two common misconceptions about spread betting: 1) it’s easy, and 2) it’s all based on luck.
In reality, spread betting is a practice that requires skill. Much like more traditional investment forms it requires knowledge about the indices, stocks, commodities, Forex, etc. that you’re using for your contracts. And while no one can truly know what these prices are going to do at any given time, the people who are most successful at spread betting are not this way because of luck.
What is Spread Betting?
To understand how to turn spread betting earnings into a second income, we’ve first got to understand what spread betting is and isn’t.
When you start spread betting, you’ll make an account with a broker like ETX who creates contracts based on the relative values of commodities, stocks, Forex, and more. Once your account is validated, you’ll make the minimum deposit, and then you’re good to go. But what do you do?
To turn this money into more money, you’ll have to choose a security (or other financial product listed) that you know something about. To get returns, you’ll have to decide whether you think, at the end of a set time period, you think that financial entity will have gained or lose value. You decide how much money you want to risk on your decision, then you wait.
If, at the end of your set time, you find that the value has changed as you thought it would, you will get earnings based on how much you bet and how much the price changed in your favor. If you get it wrong, you’ll lose the initial investment.
How to Make Spread Betting a Second Income
The average spread betting does not turn spread betting into a career. That’s because, for most, it’s a hobby. But if you want to take this investment form to another level – to actually create a significant 2nd income – you’ll have to learn some methods that most users do not employ.
This requires, above all, research. It’s best to make yourself an expert on the factors that go into one or more listed items’ value. This will require you to learn about global events, financial systems, new technologies, cultural preferences, and more. Only when you have a well rounded knowledge about the thing you’re betting on can you make a truly educated decision.
If you are continually learning about the financial entities listed on ETX Capital, the main other factor in creating income is experience. Gradually you will learn techniques and patterns that give you better results. This can only come from practice, but fortunately, you don’t have to expend a lot of money in order to get such practice.
Learning the Ropes of Spread Betting
Before you ever risk a dollar, it’s time to read about spread betting, watch Youtube videos from people who know what they’re talking about, and above all else, try your hand at a free trial account with a trusted broker. This will let you see how your decisions would pan out if you were to actually risk money.
Keep track of your results. If, after you’ve used your trial account for a few dozen experiments, look to see how much money you wou ld have lost or gained. If you’re gaining money reliably, it’s probably time to put some skin in the game. Make the deposit for your full account and get started with the financial entities you already know best from your thorough use of your free trial account.
This way, you can make spread betting at true second income, by learning skills that will keep you earning money for the rest of your life.