Spread Betting for a Living - How to Make Money
For traders looking to play the markets professionally (or make a living out trading), whether through financial spread betting or any other instrument or investment type, there are a number of considerations that must be taken into account. Particularly for those considering giving up their job to trade financial spread betting for a living, running through the numbers and the practicalities of the plan are an important precursor to deciding whether or not it is viable. By the time you get to making a decision about whether to trade part or full time, you should already be reasonably far into your trading journey, and be comfortable with your ability to make a trade profitable. Beyond that, there are several key issues you need to think about in deciding how best to structure your working life.
Time To Spread Bet
The first thing you should think about is whether you need extra trading time, and whether your strategy can be expanded to fill either part-time or full-time hours. Generally, the bulk of trading work tends to revolve around research and strategy time, in addition to monitoring open trading positions and broader account management. Knowing how much time you need, or more important how you could use your time to turn a better trading performance is important as part of making the assessment as to how much time you need.
Rate of Return
Another key consideration that should be at the forefront of your mind is the rate of return on offer from the hours you spend in front of your trading desk. In the situation where you are deciding between part-time and full-time hours, calculating this as an hourly rate is required to determine whether you can cover your cost of living for the hours you intend to dedicate to trading. Obviously this is dependent on a number of variables, including the amount of capital at your disposal and the efficiency and frequency with which you can generate results, but is nevertheless an essential computation in deciding whether full or part time works for you.
When taking the step towards becoming a spread bettor for a living, whether through switching up to part-time or full-time exposure, traders should be mindful of the need to set performance targets, to meet them and to learn from them in order to progress. Setting targets helps avoid getting too bogged down in the day-to-day, and allows traders to maintain a general oversight over how their account is performing. This allows strategic decisions to be made more effectively, but most importantly allows traders to make sure they are hitting their earnings targets to make part/full-time trading a viable option.
Spread Betting for a Living
Trading spread betting on a more professional basis is a risky, difficult way to make money, but one that remains viable for traders who take the necessary steps to ensure good results.