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The Financial Spread Betting Handbook: The definitive guide to making money trading spread bets

Book Description

Financial spread betting is a huge industry. But who wins and who loses at this game? What do the winners do that differs from the losers? That is what this book is about. Malcolm Pryor uses the model of climbing a mountain to explain a disciplined, winning approach to spread betting. First a base camp must be established. This includes getting set up with the right corporate data, charting and accounts software, deciding what to bet on and what your time frame should be, learning the nuances of operating an account, controlling risk, and learning from other people's mistakes. Many spread bettors don't even get this far. Next, we start climbing the mountain; this means having strategies that are right for us. The whole of this section is devoted to illustrating strategies which can be used for spread betting, for example trend following, counter-trend strategies and delta-neutral strategies such as pairs trading. Finally, we make our assault on the summit of the mountain. This is where the winners set themselves apart from the losers. Issues covered here include trade planning, record keeping, performance reviews, more on risk management, psychology and continual development. In this enhanced second edition, you also benefit from: - Refreshed and improved trading and risk management techniques, incorporating four additional years of spread betting experience and changes in the markets. - Brand new advice on managing exposure. - Updated analysis of spread betting firms' behaviour, order types and other practical issues. Spread betting is great fun; almost anyone can enjoy the odd bet now and again. But if you want to make money from spread betting then it must be taken seriously and a disciplined, tactical approach is required. This book is the essential guide to get to the top of the mountain.

Table of Contents

  1. Cover
  2. Publishing details
  3. Preface to the 2011 Edition
    1. Major changes in the spread betting arena
    2. Key changes in the 2011 Edition
    3. The song remains the same
  4. Preface
    1. About the author
    2. What this book covers
    3. Who this book is for
    4. How this book is structured
    5. Supporting websites
  5. Acknowledgements
  6. Risk Warning
  7. Introduction
    1. What’s special about spread betting?
    2. Overlap and convergence of betting products
  8. Part 1 – Base Camp
    1. 1. Choosing A Spread Betting Firm
      1. Origins and growth of the market
      2. Selection criteria
      3. The 6-Stage Plan for opening an account
    2. 2. Getting Set Up – Computer Hardware And Software
      1. Hardware
      2. Internet connection
      3. General software
      4. Backing up
      5. Postscript
    3. 3. Trading Resources
      1. Trading software
      2. Price data
      3. Information
      4. Websites
      5. Postscript
    4. 4. What Do Winning Spread Bettors Bet On?
      1. Markets
      2. The 3 key tests
      3. Differences between the spread betting firms
      4. Personal observation
      5. Postscript
    5. Choosing A Spread Betting Type
      1. Types of betting
      2. Differences between the spread betting firms
      3. Postscript
    6. 6. Timescales For Spread Bets
      1. 1. Extremely short timescale
      2. 2. Short timescale
      3. 3. Medium timescale
      4. 4. Long timescale
      5. 5. Very long timescale
      6. Postscript
    7. 7. Pricing And Hedging
      1. Do they really want you to win?
      2. How spread betting firms work out their prices
      3. How competitive is the market?
      4. Do they hedge?
      5. Future developments – a wish list
      6. Postscript
    8. 8. 10 Common And Really Expensive Spread Betting Errors
      1. 1. No edge
      2. 2. No planning
      3. 3. Wrong bet size
      4. 4. No risk management
      5. 5. Mistiming exits
      6. 6. Out of control
      7. 7. Not in tune with the markets
      8. 8. Running before walking
      9. 9. Emotionally unstable
      10. 10. Not taking responsibility
      11. Postscript
    9. 9. Keeping Losses Small – The Stop Loss
      1. Stop or no stop?
      2. Near or far?
      3. Automated or mental?
      4. Instant or delayed?
      5. Techniques for placing stops
      6. One more useful approach – the time stop
      7. Two tips
      8. Moving stops
      9. Postscript
    10. 10. Spread Betting Order Types
      1. Time stop
      2. Are some orders better than others?
      3. What’s on offer in the market?
      4. Postscript
    11. 11. Practical Issues
      1. Order placement
      2. Automated stop orders
      3. Dispute resolution
      4. Funds transfers
      5. Keep abreast of your margining position
      6. Postscript
      7. Congratulations!
  9. Part 2 – Climbing The Mountain
    1. 12. Finding A Strategy That Works For You
      1. What do you like?
      2. Technical analysis is excellent for spread betting
      3. The basic choice: trend or countertrend strategies?
      4. Or delta neutral strategies
      5. Master one strategy first
      6. Postscript
    2. 13. Spread Betting Strategy I – Betting On A Trend – Trend Identification
      1. Basic concept – using spread betting to ride a trend
      2. Break outs or pullbacks?
      3. How to identify trends
      4. Postscript
    3. 14. Spread Betting Strategy I – Betting On A Trend – Selecting A Bet
      1. Simplifying trade selection – the weekly shortlist
      2. Simplifying trade selection – identifying daily set ups
      3. Taking the trade – entry triggers
      4. A new approach to short listing
      5. Postscript
    4. 15. Spread Betting Strategy I – Betting On A Trend – Bet Size
      1. Taking the trade – the right size of spread bet
      2. Postscript
    5. 16. When To Exit A Bet
      1. 1. The bet goes against us
      2. 2. The bet goes nowhere
      3. 3. The reason for the bet disappears
      4. 4. The bet goes our way
      5. Postscript
    6. 17. The Re-entry
      1. Postscript
    7. 18. Spread Betting Strategy II – Betting On Reversals
      1. 1. Buying support and selling resistance
      2. 2. Betting on candle patterns
      3. 3. Betting on gaps
      4. 4. Betting on divergence
      5. Postscript
    8. 19. Spread Betting Strategy III – In And Out Within A Day
      1. You need the time to do this
      2. Finding intraday bets
      3. Betting as company results come out
      4. Betting on false break outs
      5. Betting on blow offs
      6. Betting on indices and currencies intraday
      7. Binary betting
      8. Postscript
    9. 20. Advanced Strategies
      1. Arbitrage
      2. Pairs trading
      3. Hedging
      4. Postscript
  10. Part 3 – The Route To The Summit
    1. 21. The Right Strategy For You
      1. Character
      2. Account size
      3. Beliefs
      4. Attitude to risk
      5. Postscript
    2. 22. Staying In Control – Planning
      1. Annual trading plan
      2. A week in the life of a successful spread bettor
      3. Postscript
    3. 23. Staying In Control – Record Keeping
      1. Postscript
    4. 24. Staying In Control – Regular Reviews
      1. Monthly review
      2. Annual review
      3. Postscript
    5. 25. Staying In Control – Risk Management, Again
      1. Staying in tune with the markets
      2. Monitoring positions
      3. Margin control
      4. Managing total exposure and leverage
      5. Net long/short
      6. Diversification
      7. Standing aside
      8. Counterparty risk
      9. Exceptional events
      10. Contingency planning
      11. Postscript
    6. 26. Developing A Winning Attitude
      1. Profile of the successful spread bettor
      2. 10 Rules for Profitable Spread Betting
      3. Postscript
    7. 27. Continual Development
      1. Books
      2. Seminars
      3. The final postscript….
  11. Appendices
    1. Examples of Basic Bets
    2. Spread Betting Glossary
    3. ADX
    4. Support and Resistance
    5. Betting via Exchanges
      1. How it works
      2. Benefits and risks of this type of betting