How Can I Make More Money From My Home?

How Can I Make More Money From My Home - Financial Spreadbetting

In 2010 I went to a seminar in London run by a Spreadbetting Bookmakers with a friend of mine who happened to work in their I.T. department. At the time, I had no idea what Spreadbetting was but from the small amount that my friend had told me I liked the sound of it.

Spreadbetting is a form of gambling, but before you run away stick with it a second. If done properly Spreadbetting is a very effective way of making money because it doesn't involved guesswork such as a football match bet would.

In Spreadbetting you will bid on the financial markets (i.e. the stock market). You can bet whether a price of shares, or the FTSE 100, or Gold for example will go up or down. Lets say you bet £10 per point that the FTSE 100 will rise today. The FTSE then goes on to rise 67 points and closes at 5pm. By 5pm you are richer to the sound of £670, all from behind a screen with no work involved.

However, if the price had gone down by 67pts (i.e. the other direction to which you chose) you could have lost £670 in one day.

Yet, here's where it gets interesting. Spreadbetting allows you to use something called a "stop loss". Essentially it's your early get out clause if you choose incorrectly. As an example, we'll return to the FTSE 100 bet described above.

The price of the FTSE100 is at 1500pts. You bet £10 per point that it will go up over the next day. However, you place a stop loss at the price of 1490. If the price falls instead of rises your stop loss closes you out of the trade when it hits 1490.

Now, in this scenario you lose £100. However, compared to the potential limitless profit you could have made on it if you had got it right (£670... or more) you can now start to see just how profitable spread betting can be, and how when done correctly you can make a lot of money.

Lets say we place 10 bets on 10x different shares at £10 per point. All bet that the price is going up and all with stop losses placed 10 points under the starting price you entered the bet on. Lets say 8 of your 10 bets all go in the wrong direction. That's a loss of £800. However, your 2 remaining trades went in the right direction. The first made +54pts and the second rose +49pts. That's a total of +103pts which equals £1030. Your £230 in profit at the end of the day and all you did was sit in front of a PC for 30 minutes at the start of the day.

Those who make serious money on this setup will tend to following shares and markets which are trending. By trending we mean shares or markets which have been going up or down over a long period of time. We'll bet that the trend will carry on going up or carry on going down depending on the market we're looking at, but the point is that this trade has been going in the same direction for months maybe even years on some of them. How likely is it that the day you come along these markets are going to buck the trend and start going the other way. It does happen from time to time but it's unlikely. And remember, you only need 20% of your trades to go into good profit to make up for all the others that lost out. So following trends is an almost sure fire way of making more money.

Last year I made just under £6000 extra income on my spreadbetting account. Sign up for a spreadbetting account today with any of the bookmakers who offer these services and get putting these techniques into action.



By: Jaques Saviet

Would you like to find out how to make an unlimited income from behind your PC? What's more, would you like to do it only needing to spend up to 30 mins a day behind the screen? Then visit www.spreadbetbeginner.co.uk, a free website featuring articles, advice, real trade picks and a full insight into what Spreadbetting is and how to do it yourself.