There are many, many wolves out there in the investment community claiming to be the bees knees on spread-betting. Web sites, Blogs, Magazines, Online forums, Trading sites. The list is ever changing. Of course most think that they can pull the wool over the eyes of the lowly retail punter. Some self proclaimed fund managers take a chunk of change in kick-backs/commission every time they deal or place a bet/trade in the very funds that their clients are giving them cash to invest in. It’s a nice little earner. A good tip is to check directly with the fund manager. Ask Him/Her if he/she receives commission/kick-backs. You’ll immediately notice a wriggle from them as they try to avoid a direct answer of Yes or No. Always read the small print because the rule of thumb is that by it’s very nature “small-print” is their because they don’t want it read by YOU!
Most punters who open a spread-betting account last about 4/6 months. On average a spread-betting account remains operational for approx. 6 months. Once losses accumulate reality sets in. The SB siren calls have crashed many upon their rocks. Signing up for a spread-betting account is suicidal. Signing up and paying for online periodicals on SB is akin to paying to be “advised” on how to lose your money. You will lose your cash; thinking that it will be the road to big money with little effort is what the SB “Gurus” want you to believe. All the bumf is aimed at deflecting you away from the losses that are inherently guaranteed.
People always lose at spread betting because they are looking for short term profits based on little more than a hunch or an article from an online site, magazine. There’s no short-cut to riches. In the real world; long hard research of company fundamentals, assets, management is the only way you can make a judgement on any company. The more information you glean the better chance you have of making the right investment. The shorter the timeframe for a trade the more difficult it is to make profit given the spread. Making judgement calls takes time. One should never make snap decisions.
Remember never trust fund managers with your cash. Most are losers and under-perform the market, that’s why these financial companies are always coming up with grandly named new financial products to sell. The difference between a UK smaller companies fund and a UK special opportunities fund is? Nothing other than the name. It’s the fund managers that cream it in.
The allure for wannabe newbie spread bettors, tempted to dip their toes into the shark-infested spread-betting waters can be irresistible but remember you will get your legs bitten off. Spread betting is controlled and run for one purpose and one purpose only. So that your cash goes into their pockets! http://www.snouts-in-the-trough.com/archives/2296
If approached by any periodical, company, blog or spread betting ‘guru’ think CONMAN. The same way as you would if approached via email from Mr Mombasa Calumbay (the Lion) from Nigeria!