Spread Betting Losses and How to Learn From Them – City Index

The leverage inherent in financial spread betting (http://www.cityindex.co.uk/spread-betting/) has pros and cons. On one hand, any profits you make are amplified, but the same is true of your losses, meaning you can lose more than your initial investment. Losses are sometimes unavoidable, so what is the best way of dealing with one when it occurs?

A loss can be more valuable to your spread betting education than a profit. Do not simply put it down to bad luck and move on - think about what happened. Could you have lost less or even avoided the deficit altogether? Did you try to let a profit run for too long? Were the signs there that you should have cut your losses earlier? By working out how not make the same spread betting mistake twice, you can tailor your spread betting style to make it more effective.

Do not get caught up in individual losses on each trade. Your spread betting strategy should be focused on your overall bottom line. If a spread bet is moving against you, evaluate carefully whether keeping it running fits in with your strategy, or if you are just hoping that the markets may possibly turn around. If you’re running on blind hope, stop right there. Close out the trade before you lose even more.

To learn more spread betting strategies from City Index, visit: http://www.cityindex.co.uk/learn-to-trade/

Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

About City Index

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through the City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.

We constantly look to improve the performance of our platforms and expand our range of services. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. For more information, visit http://www.cityindex.co.uk/.