Sports Betting - Know Your Betting Limits
As I write this, I'm nursing a tiny sore head and an empty wallet. Within the last few one month I've lost almost £30,000 spread betting for approximately one hour a day five days a week. So I was able to blow around £1,500 an hour. That's really quite a chunk of cash. Actually, it's not quite as bad because it looks. Fortunately, I was betting utilizing a few spread-betting companies'demo sites. They are simulations of the live betting sites that enable you to practice before you start betting with real money. I realise that I am no financial genius otherwise I would have been rich long ago. However, the truth that I managed to squander so much money so quickly does pose the question - if spread betting seems so easy, why do so lots of people get completely wiped out extremely quickly?
We're increasingly seeing advertising for spread betting in investing and money management publications. In usually the one I sign up to, four or five different spread betting companies take full-page colour ads weekly, outnumbering every other form of advertising. Spread betting ads happen to be common available sections of several weekend newspapers and will most likely soon start to appear in the non-public finance sections. Spread betting could appear deceptively attractive to many savers. After all, profit a bank, shares or unit trusts will at best give us about a miserable five per cent a year before tax. Yet a reasonable run using spread betting can very quickly let you pocket ten per cent weekly - five hundred per cent per year - completely and gloriously tax-free. So spread betting can allow you to earn in just twelve months what it'd have a hundred years or more to accomplish with most other investments. Spread betters gamble on price movements of anything from individual shares, currencies and commodities to whole markets just like the FTSE, Dax or S&P. It is known as spread betting because the organization providing the service makes most of the money by putting one more spread around the purchase price where something will be bought or sold.
It enables you to bet on price movements without having to buy the underlying assets - shares, commodities or foreign exchange. When you buy or sell shares, get paid dividends or receive interest from a bank you will need to pay taxes like stamp duty, capital gains and income tax. Unless spread betting is the full-time job and only source of income, you will find no taxes to be paid as it's regarded as being gambling. When you spread bet you are able to gain equally as much whether prices rise or fall, offering you guess the direction correctly. With most other investments, you'll need the purchase price to increase before you produce a profit. If the FTSE, for example, is trading at 5551-5552, you are able to place two bets, one that it will rise and one so it will fall. These only get triggered when the FTSE actually moves. So when it starts rising, your bet so it will rise gets triggered. Similarly if it drops, only your bet so it will fall is triggered. So it could seem that, come rain or shine, you'll probably win.
If you bet say £50 a pip (a pip is usually the minimum price movement you are able to bet on), it is possible to win four or five times your original bet if the cost moves in the proper direction. On a really good bet, you are able to win much much more. Prices on many shares, currencies, commodities and other items people bet on tend to experience periods of stability followed by bursts of movement up or down, what spread-betters call'the breakout '. You can place a bet that's only activated when the breakout comes. You are able to put conditions in your bet that prevent your losses exceeding your chosen level should your bet are already wrong.
Industry estimates suggest that around ninety per cent of spread-betters lose most or all their money and close their accounts within 90 days of starting. There seem to be another eight per cent roughly who make reasonable amounts of money on a typical basis and you will find around two per cent of spread-betters who make fortunes. I've been to some presentations run by spread betting companies and at one of these the salesman let slip that over eighty per cent of his customers lost money. Even many professionals lose on about six bets out of each ten. But by controlling their losses and maximising their returns when they win, they can increase their wealth.
When you open a test or real account, you are certain to get several telephone calls from extremely friendly and helpful teenage boys and women at the spread-betting company asking if there's anything they could do to help you to get going. This is customer support at its very best. Most of the people contacting you'll parrot the line that they would like to help and that they're happy if you're successful as their company only makes money from the spread. Some will reassure you that they need one to win because the more you win, the more you're prone to bet and the more the spread-betting company will earn. This could make you are feeling good, convince you that the company is open, honest, trustworthy and supportive and encourage you to use them for the betting. But it's also a lie. It's true that the business will make a lot of its money from the spread. However, with many of your bets, you're betting against the organization and so they really hope you lose, big time. In reality, over the last month I've seen several companies change the conditions on their sites to produce it much UFABET more likely that people using them will lose. So, lesson one - spread betting companies aren't your friends. The more you lose the more they win. It's that simple. If you bet say £50 a pip and the price does go the manner in which you want, the spread betting company takes the very first £50 you win. So the purchase price has to maneuver two pips in the right direction for you really to win your £50 back and three pips for you to emerge with £100, doubling your money. If the price moves three pips in the incorrect direction, you lose your original bet plus £50 a pip, giving an overall total loss of £200, a loss in four times your original bet.
With most gambling, you can only lose that which you deposit on a horse, blackjack or roulette. With spread betting you can quickly leave behind a lot more than you wager. I forgot to place an end loss using one bet and managed to reduce over £800 with just one £50 bet. Because your bet is leveraged, you may make both fabulous gains and excruciatingly painful losses. Too often oahu is the latter. The tiny size of many bets, often £5 or £10 a pip can lull betters in to a false sense of security. It's only when the losses go five to ten times the first bet which they realise the chance they've taken.
At one free spread-betting seminar I attended we were significantly more than strongly encouraged to register for a two-day weekend course teaching us how to spread bet successfully. This may normally cost (we were told) £6,995, but there clearly was a particular offer for the initial five visitors to subscribe of only £1,997. There are lots of such courses and also gurus offering to sell you their special spread-betting systems, guides, webinars and a variety of other advice. With so many supposed experts apparently making a living teaching others just how to spread bet, there must be lots of takers. But I've found that most you need to find out and more can be acquired free on the Internet. As you specialist said,'Don't bother wasting your cash on'Guru'books written by so-called experts. Those books are crap and not worth the paper they are printed on. Nobody sells a key trading methodology if they're really successful. The only reason these guys are writing books is basically because they didn't ensure it is as traders '.