The Role of Research in Spread Betting

The financial markets have, since their first inception, proven to be an attractive place for those with the ability and determination to make money. A highly lucrative environment, financial trading has always attracted the brightest and best, leading to massive institutional investors which trade substantial volumes and have substantial resources at their disposal for reading and interpreting market behaviours over the short, medium and long term.

Undeniably the most important part of the spread betting game takes place before a trade is placed, and is an ongoing process that must be conducted each and every time you consider entering a position. The trouble is, as an individual trader, you’re competing in a marketplace that is comprised of thousands of experts, many of whom will have years of experience, the best trading education money can buy and the support and infrastructure of other, similarly well-placed individuals.

As an individual trader, of course you’re not competing directly with other investors, but you can’t write off the impact of trading under these conditions. A good rule of thumb is to assume that everyone else knows a great deal more than you when it comes to the markets. This isn’t self-deprecating – it’s almost certainly a fact, and it’s an important realization on the path towards levelling out the playing field.

The key to trading success is research. Research breeds knowledge, and knowledge breeds more sensible, more logical decision making. While you also need a good deal of luck to swing in your favour, the research element is one piece of the market puzzle that you can control, and it pays serious dividends to make sure you are committed to finding out everything you can about trading theory and current market affairs, to ensure you’re in the best possible place to start trading.