As I talked about earlier, there are a lot of different ways to learn how to trade as a swing trader. If we’re just going to learn one specific method then you might as well start with a good one.
There are some techniques that are the most popular and easily explained. These are the techniques of which I’ve personally learned the most over the years. With this guide to learning how to trade you’ll be able to implement these techniques onto your own trade.
First, let’s talk a bit about the basics of trading. One of the biggest concepts you need to become familiar with is spread betting. Spread betting is when you bet on the spread between a position or the price of the trade and the market. This is especially important for big spread bets (such as the spread bet in the picture below), when you know you can cover your position in the near future and the trades can be covered in the long term too.
Spread betting works by calculating the profit that the trade will make over the long term when you take advantage of other traders’ mistakes and take profit from them. Now, let’s look at the most popular spread betters and how to use them on your trades.
Spread betters can be as simple as:
Buy the market, buy an instrument, and move your position
Short Sell the market, sell an instrument, and hold your position for a day or two.
If you’re like me then this is probably a better bet than the first one. You don’t really need an instrument (unless you have lots of options) or an instrument that you can hold for a long time (unless you have too many of them).
The spread betting technique is really useful if you have multiple instruments and no one to trade with. You could use it to trade without any other strategy at all.
However, spread betting can be complicated and very much depends on the trading style of the trader, but that’s why it’s also a great beginner tip.
How to Use Spread Betting
So how can we use spread betting? Well, as previously mentioned, we have a few things to think about when using the spread better strategy. They’re just like a regular spread bet but on the outside. That means we know which instrument will be used over an extended period.
So what do we put inside this spread bet? Some of the most common instruments are:
Fixed-return funds (
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