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Posted (edited)

Apologies if there is already a thread on this. I searched and could not find one.

Does anyone have any experience of spreadbetting? I'm looking for a small side hustle that I can do for, say, an hour each day.  The tax-free winnings side appeals to me because I want to keep my taxable earnings down.

I did matched betting for a while, I know it's not the same but I was able to do that fairly easily and stay organised with all the spreadsheets etc.

Any advice/experiences welcome.

Edited by Austin Allegro
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13 hours ago, 5min OCD speculator said:

apps are the work of the devil :P

Robinhood are selling customer order info to hedge funds who are front running their orders....how is that not illegal? O.o

Be careful they're all crooks, you'll need to lose a 5 or 6 figure sum before you get the hang of it xD

https://www.nytimes.com/2020/07/08/technology/robinhood-risky-trading.html

RobinHood.

Sounds like robbing the poor to give to the rich!

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From what I've read, if you can do the 15minute, 60minute type trades you make money initially, with little moves  here and there, or on the morning of a RNS release, but then the spreadbet company will move you on to dealer trades which is slower or limit you on bet size or what direction you can go. 

I know for a fact that if there is a high probability that a stock is going down you won't be able to bet on the one or two month contracts as you'll get the message "no stock on loan available". You may be allowed to use the daily funded bet, but then you are paying interest every day that the bet is in the money. This creates a huge psychological pressure to end the trade because it feels like you are losing money. If the stock doesn't move much you could close the trade outside of your trade plan prematurely. So you may be allowed to bet on not such a sure thing depending on the broker. They know.

If you don't have a trade plan or a spreadsheet to record spread bet trades you have very little chance of the account surviving 1 month. There is no one on this planet that can stick their finger in the air and put on a trade capturing the random ebb and flow of the market minute by minute and be consistently right and be profitable. No one is Neo (from the Matrix).

It would be nice to know the algorithm that these spread companies will move you onto dealer trades.

Maybe when you pull out £5,000, or £10,000 I guess?

I recommend that if anyone wants to dabble in leveraged instruments, to read read read. There is a forum that I used to read, you may want to start

here https://www.trade2win.com/forums/spread-betting-cfds.59/ 

and

here http://www.financial-spread-betting.com/course/spread-bet-guide.html

Oh and be prepared to lose £1000 off the bat learning :)

---

Out of interest, did you know that Jim Cramer when he was running his $100m odd fund in his book Confessions of A Street Addict, he didn't use leverage.

Edited by 201p
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I do have a "plan" in my head, that if I have a lot of free time available, that I would make it work by:

1. Making a list of all the FTSE 100 companies, and a calendar of when news should come out.

2. Target these companies and watch them during the market open -  but sometimes news can come out in the afternoon.

3. Have a spreadsheet that monitors the risk size with respect to account size, as this can be volatile.

4. Have a dedicated phone by the desk in case you need to shut a trade quickly and the online desktop is offline (which does happen at the most inconvenient moment).

It seems too much like "work", and you are basically working office hours to pull this off. Except you need to be in the office with the monitor on, at 7am, as news can be leaked or released before the market open.

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[I don't spread bet by the way.]

So this is what is being talked about lately - Boohoo. If there is news, there is price action, and logically a trader should keep up with the news and go where the action is whether or not you like or dislike the company or sector. 

Boo Hoo has been going down, but bounced around the 250p area. RNS news is out that it has bought shares at this low for around 255p, I guess to support the price. This I can only think as a one time shot - how much ammo is there to continue to do this?

What will Boo Hoo do today on the back of it? It certainly isn't going to remain flat (I don't think) - this is why news flow is important. There are 3 ways a stock can go, up, down or flat. So if flat is eliminated, that improves your chance of you getting it right!

Untitled.thumb.gif.c3d4c6c48dd27d08043bc3319e24daaf.gif

 

Edited by 201p
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Spreadbetting is not for individual companies......unless you happen to have some 100% solid insider info....

The best use is for currencies, stock market indices and commodities......use it as a hedging tool ie you have savings in £ but you need say $ or € in the next say 6 months and you're happy with the current exchange rate....

Edited by 5min OCD speculator
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1 hour ago, 5min OCD speculator said:

Spreadbetting is not for individual companies......unless you happen to have some 100% solid insider info....

The best use is for currencies, stock market indices and commodities......use it as a hedging tool ie you have savings in £ but you need say $ or € in the next say 6 months and you're happy with the current exchange rate....

It would be interesting to see if there were any large bets placed running up to the exposé.:ph34r:

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This is how BOO ended this week. A short burst past 300p, but no more buyers came in, and it ended lower than the open. I don't know if I would have profited from today's action. If you bet that it would have ended lower, then you would have been right, but not after sitting through a big draw down past £3. Or if you had a plan for it not to hold £3 and initiate a short there - but then you don't know when that could happen.

---

Untitled.gif.4d57570b778871ac92bf6b52e89f013b.gif

 

A fund has divested it's entire holding:

One of the biggest investors in Manchester online fashion retailer Boohoo has dumped its stake in protest at the group’s poor track record on corporate social responsibility.

Aberdeen Standard Investments has sold its 27 million sharesholding in Boohoo following a week of turmoil for the business after Sunday Times reports linked it with a Leicester sweatshop.

https://www.thebusinessdesk.com/northwest/news/2063020-nightmare-continues-for-boohoo-as-major-investor-walks-away

If you were the CEO your only hope is to weather the storm (Dominic News Cycle Style), make the changes/improvements required and hope for the best.

Edited by 201p
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  • 2 weeks later...
Posted (edited)
On 10/07/2020 at 07:22, 201p said:

From what I've read, if you can do the 15minute, 60minute type trades you make money initially, with little moves  here and there, or on the morning of a RNS release, but then the spreadbet company will move you on to dealer trades which is slower or limit you on bet size or what direction you can go. 

I know for a fact that if there is a high probability that a stock is going down you won't be able to bet on the one or two month contracts as you'll get the message "no stock on loan available". You may be allowed to use the daily funded bet, but then you are paying interest every day that the bet is in the money. This creates a huge psychological pressure to end the trade because it feels like you are losing money. If the stock doesn't move much you could close the trade outside of your trade plan prematurely. So you may be allowed to bet on not such a sure thing depending on the broker. They know.

If you don't have a trade plan or a spreadsheet to record spread bet trades you have very little chance of the account surviving 1 month. There is no one on this planet that can stick their finger in the air and put on a trade capturing the random ebb and flow of the market minute by minute and be consistently right and be profitable. No one is Neo (from the Matrix).

It would be nice to know the algorithm that these spread companies will move you onto dealer trades.

Maybe when you pull out £5,000, or £10,000 I guess?

I recommend that if anyone wants to dabble in leveraged instruments, to read read read. There is a forum that I used to read, you may want to start

here https://www.trade2win.com/forums/spread-betting-cfds.59/ 

and

here http://www.financial-spread-betting.com/course/spread-bet-guide.html

Oh and be prepared to lose £1000 off the bat learning :)

---

Out of interest, did you know that Jim Cramer when he was running his $100m odd fund in his book Confessions of A Street Addict, he didn't use leverage.

Very interesting posts, thank you. I was not aware about the spreadbetting companies limiting trades etc. I naively assumed one was just left to get on with it. 'The House always wins' as they say.

Edited by Austin Allegro
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