Newbie with 5 Questions

[Andrewt84]

Hi Guys/Good evening

I am new to spread betting and I am playing around with indices.

What make the Indices go up or down? how do you come to the conclusion that the indices is going to go higher or lower the next day?

I am correct we all just wait for the market or shares to rise or go down and then jump off the train as it starts to go off track lol???

I am correct day traders spend all day betting the market go up then down up and then down all day?

What is the easiest way to make money on spread betting? Indices, sectors, metal or currency ?

Thank you
Andrew

 

[CityMasterTrader]

Hi Guys/Good evening

I am new to spread betting and I am playing around with indices.

What make the Indices go up or down? how do you come to the conclusion that the indices is going to go higher or lower the next day?

I am correct we all just wait for the market or shares to rise or go down and then jump off the train as it starts to go off track lol???

I am correct day traders spend all day betting the market go up then down up and then down all day?

What is the easiest way to make money on spread betting? Indices, sectors, metal or currency ?

Thank you
Andrew

Hi Andrew,

Firstly, there’s no easy way. Be prepared for loses. However, there’ll be the most lucrative losses you’ll ever make, as long as you learn from them.

To a large extent, I think trading is an art, not a science. Nobody can tell you ‘this is how you make money from them’ – this kind of info wont be given away for free, and it depends on the individual to a large extent.

There are many things that will affect the index. The index is made of its constituents – the FTSE 100 index, for example, is made up from (you guessed it) the top 100 UK listed companies by market cap. So, when they go up, so does the index. Out of hours, they trade on the futures prices.

I would suggest looking into technical analysis first. Be aware of news/fundamentals that move the market, they can throw your technical off. History can tend to repeat itself, so the trick is spotting patterns. Be prepared for losses, nobody ever learned anything taking a profit. Control your losses, cut them, run your profits, have a plan.

Hope it helps (in some small way), and good luck. Keep us posted on progress.

 

[Triggerfish]

.....

A more serious question would be why is one trading the markets with real money without first understanding what the markets really are.....one should stick to a demo account and try and LEARN and UNDERSTAND what it is first.....you can't run if you can't walk!

 

[timsk]

I am new to spread betting and I am playing around with indices.

Hi Andrew,
When you joined T2W last month, you were sent an e-mail with some links to various Stickies, FAQs threads and Articles around the site. Your questions indicate that you haven't read any of that content, much of it produced specifically for members new to trading like you. All your questions are answered comprehensively in those links, so read them now. To save you looking through your inbox, click on the first two in my signature, below.

If you're looking for a short cut to success, a simple cookie cutter solution that requires little time or effort on your part, then forget about trading. Period! I hope your 'playing around with indices' is via a demo account using paper money? If not, stop trading real money immediately - before you lose it all - which is virtually guaranteed given your current knowledge and understanding of the markets.
Tim.

 

[pboyles]

how do you come to the conclusion that the indices is going to go higher or lower the next day?

Nobody knows that, at best it's an educated guess, for most its just gambling.

 

[BeginnerJoe]

What make the Indices go up or down?

Very simple. You can potentially make the indices go up or down all by yourself in quiet periods, say while most people are asleep.

Imagine you are long index X at 6000, stop at 5900. What you are effectively saying to people is that you are buying at 6000 and selling the same at 5900. Can you imagine any bank or large institution who wouldn't jump on your deal and fulfil your entire wish ? It shouldn't take a great deal of imagination to see that these institutions have the ability to move the index according to your wish, even if just temporarily.

A more interesting question to ask is what makes you, yes YOU, want to buy something expensive and then sell it cheap ?

 

[Triggerfish]

how do you come to the conclusion that the indices is going to go higher or lower the next day?

Nobody knows that, at best it's an educated guess, for most its just gambling.

Is this your belief or is it a fact?.....because a belief isn't a fact is it?.....anyway, if one doesn't know, does that mean it cannot be known?

So you're suggesting that no one "knows" direction of price from a certain point onwards in time?.....I think there are people who do "know"!!

 

[ZEN archer]

Very simple. You can potentially make the indices go up or down all by yourself in quiet periods, say while most people are asleep.

Imagine you are long index X at 6000, stop at 5900. What you are effectively saying to people is that you are buying at 6000 and selling the same at 5900. Can you imagine any bank or large institution who wouldn't jump on your deal and fulfil your entire wish ? It shouldn't take a great deal of imagination to see that these institutions have the ability to move the index according to your wish, even if just temporarily.

Would you say they tend to push them towards clients' stops BJ?

BTW I'm puzzled how they come with prices while the markets (options and futures) are closed:-0

 

[BeginnerJoe]

Would you say they tend to push them towards clients' stops BJ?

Banks and institutions don't have little fish clients. But I would say bank and institutions push things to wherever there is a profit. But ultimately the other side of your trade are the banks and institutions. Your bucketshop is just middleman and doesn't count, nor would they have the means or inclination to do the pushing. So no, client stops are never pushed towards. But the entity at the other side of your trade always pushes it towards your stop because it is their business to do so. When people chose to buy high and sell low and make it abundantly apparent with great fanfair, this is a seriously good business for banks and institutions.

 

[luckystrike23]

subscribe to this channel should be useful http://www.youtube.com/ukspreadbetting

 

[Giovan]

Better get over to the BP of FPA schools or any other free but comprehensive content before asking these questions

 

[Purple Brain]

Very simple. You can potentially make the indices go up or down all by yourself in quiet periods, say while most people are asleep.

Imagine you are long index X at 6000, stop at 5900. What you are effectively saying to people is that you are buying at 6000 and selling the same at 5900. Can you imagine any bank or large institution who wouldn't jump on your deal and fulfil your entire wish ? It shouldn't take a great deal of imagination to see that these institutions have the ability to move the index according to your wish, even if just temporarily.

A more interesting question to ask is what makes you, yes YOU, want to buy something expensive and then sell it cheap ?

The enormity of your deliberate misinformation or unintentional stupidity and the impact this will have on those trying to learn verges on the criminal.

If you are being willfully malicious then natural processes will sort you out in the fullness of time, but if you really don't realise you don't know anything please be advised that you don't - and take a break from offering any advice as you really have no idea what you are talking about. Those that already realise that aren't the ones that need protecting.