shaz619
Test Star
- Joined
- Mar 31, 2010
- Runs
- 36,688
- Post of the Week
- 7
I think the stats show (they often have to publish this in the small print) about 80-90% of spreadbet/cfd accounts lose money. You need to know what you are doing because you are trading on leverage. I've known pro-traders get wiped out on those accounts. And I mean wiped out of the game alltogether.
Best to start with a regular savings type account and 'pound cost average' or 'dollar cost average' into funds/stocks
https://www.investopedia.com/terms/d/dollarcostaveraging.asp
When I first started (back in the 1990s) I stuck to what I thought I knew investing in football club shares
You could at that time buy shares in Manchester United, Arsenal and Liverpool when the whole clubs were valued at only c.£10m (they're now all valued at £1000m+ because of inflation / media rights / understanding of their global brand appeal etc)
If you do opt for stocks its a good idea to initially stick to companies/products you know. e.g. if you were into cars why not look at companies that supply the auto industry for example
Spread betting as in buying small shares across a variety of companies ? with the theory being they are aiming to mitigate the potential risk.
Currently from a share POV I have a company savers and purchase account with contribution being deducted from the wage monthly although I am limited by the amount I am able to contribute, beyond that have not invested but looking to. Is a dollar cost averaging similar to this ? where you are contributing regularly on a monthly basis etc and target select companies, however this is highly risky unless you have an idea or vision for where the company will be 10 years from now, you've done well s28 to target those clubs