If you treat spreadbetting companies as a place to have a flutter on a fancy share, then you'll lose money.
If you spreadbet in a responsible way, with careful planning, then you should make money. I'm not a
person who studies indicators and other TA matters in depth. I just have some favourite signals and I make money with spreadbetting companies.
Rolling bets are close enough to market prices and the trades can be made when spreads are at their closest. They never will be as close as brokers spreads but they are close enough for me but if one has an ambition to be a day trader, forget it. It's all about swing and position trading.
Yes, there are some childish posters on these threads. I make it a point not to direct any of my posts to them, nor do I answer them. What do they know?
Split
If you spreadbet in a responsible way, with careful planning, then you should make money. I'm not a
person who studies indicators and other TA matters in depth. I just have some favourite signals and I make money with spreadbetting companies.
Rolling bets are close enough to market prices and the trades can be made when spreads are at their closest. They never will be as close as brokers spreads but they are close enough for me but if one has an ambition to be a day trader, forget it. It's all about swing and position trading.
Yes, there are some childish posters on these threads. I make it a point not to direct any of my posts to them, nor do I answer them. What do they know?
Split
Jack o'Clubs
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darktone said:
Crikey, I made the mistake of posting my comment after reading the most recent page of replies (not having the stomach for the other 15). I've now gone back and started to wade through the entire thread and can only heartily agree with you. I wish I hadn't bothered posting - my points have been made many times on Pages 1-15. A waste of space indeed, but I can't help thinking it's a shame that people who are in essence trying to achieve similar objectives can be so vehemently opposed to one another
.charliechan
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darktone said:
Hmm Im not so sure.
Some body I spoke to who uses spread betting for longer term trades told me that the wider spread often negates any tax advantages, and the spread is often skewed against you when trying to get out - more 'slippage'
my real guess is that as there are so few successful traders out there, the number of successful spread betters will be even smaller due to the higher costs of this method.therefor, it stands to reason that very few people can honestly claim whether or not my friends story is true in the cold light of day. remember that long term traders often make around 20-30% return on capital given the low win rate of most long term/trend following methods. add a wider spread to each transaction and i would imagine that 20-30% gets eroded quite heavily.
I do not and never have opened a spread betting account.
i do know that people have been banned for pointing out the disadvantages of spread betting, just because the truth got peoples backs up. people hate to admit being wrong, especially amateurs.
i haven't read all 15 pages though - so maybe they have!
i see no problem in people discussing the merits of one form of speculation over another, as long as people dont get bugged out or upset by facts or ideas that may contradict someones line of thinking. go join tony blair & diane abbot & their pc brigade who are currently working hard to destroy the morals and ethos of our once great country if that describes you!
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the blades
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I know this is absolutely pointless, but my thread on spread bet costs covers this (and for a fairly sizeable portfolio).
The spreadbet costs are less than stamp duty. These are facts as described by actual deals placed - not opinion.
But those who don't want to believe it will write it off, without presentation of any facts to the contrary. Hence the conclusion (above) that this thread is, in fact, pointless
UTB
PS - I suspect people were banned for pointing out false OPINION, when actual FACTS were being presented.
The spreadbet costs are less than stamp duty. These are facts as described by actual deals placed - not opinion.
But those who don't want to believe it will write it off, without presentation of any facts to the contrary. Hence the conclusion (above) that this thread is, in fact, pointless
UTB
PS - I suspect people were banned for pointing out false OPINION, when actual FACTS were being presented.
charliechan
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the blades said:I know this is absolutely pointless, but my thread on spread bet costs covers this (and for a fairly sizeable portfolio).
The spreadbet costs are less than stamp duty. These are facts as described by actual deals placed - not opinion.
But those who don't want to believe it will write it off, without presentation of any facts to the contrary. Hence the conclusion (above) that this thread is, in fact, pointless
UTB
PS - I suspect people were banned for pointing out false OPINION, when actual FACTS were being presented.
how much is stamp duty? about 1-2%?
a wider spread of say 1-2p a share will surely equate to more than this?
wheres the thread?
the blades
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charliechan said:
Hello Charlie,
the thread is;
http://www.trade2win.com/boards/showthread.php?t=18701
On FTSE 350 stocks, CMC add about 0.25%. Stamp duty is 0.5%.
Spreadbetting is cheaper, even before you start adding broker fees, and tax (if applicable).
I'd be interested in your thoughts.
Cheers,
UTB
charliechan
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the blades said:
well, its good that you are doing your due diligence. like i said, i dont hold a sb account. the horror stories i have heard have put me off. take that guy in in the derivatives forum. from memory, the option was 7p and he was asked to stump up like 12p! thats some spread!
as a side note though, what about the dividends you will go without? if a company awards shares over cash, does your position increase? my guess is that it wont (but im not 100%)
what happens if a stock splits? is this reflected in your position?
either way, i guess it boils down to whether you are happy trading against a house who knows your position, or the market which is by definition more transparent. i do recall a post from twalker though where he mentions sb companies do offer some advantages in thin futures markets - so there could be something to it.
the blades
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charliechan said:
Hello Charlie,
Thankyou for keeping an open mind.
I don't care if the house knows my hand, as long as they keep their quotes in line with the market.
As for Dividends - you will see in the annual interest column that sometimes it is less than 4.75%. This is the effect of the dividend to be paid - the quotes are lowered to reflect this. Some deals show negative interest - this is where the dividend due outweighs the interest charge.
Stock plits are deallt with failry too. I can't comment on options - I don't understand or trade them.
TBH - all the above is smally fry if you're profitable and subject to 40% CGT.
I have no ties to spreadbetting, it's just that however I look at it it's by far the cheapest method for me.
Cheers,
UTB
