Spread Betting is an Educational Place to Start Investing

Spread Betting is an Educational Place to Start Investing

Knowledge is power, and nowhere is that more clearly seen than in investing. Famous investors like Warren Buffett read about companies, markets, economies, and culture for more than 10 hours per day, just to gain the knowledge they need to spot market opportunities. There’s a reason investing is difficult. The spoils go to those who notice them, and there are so many investors looking that opportunities tend to be taken – that is, unless you’re willing to learn more than the average investor.

Investment can be an excellent source of income and long term security. Many people with developed portfolios can live off of the dividends, without ever selling the stocks they own. Others’ portfolios grow at such a rate that they can sell between 3% and 7% of the portfolio each year, without seeing the total value of the portfolio drop in the meantime.

The problem is, not everyone has the resources to make a second income out of investments. It takes money to make money, and for the average person, this kind of financial independence seems like little more than a dream.

For some, this may be true. But people don’t know what they’re capable of until they try. And with investing, success goes to those who cultivate knowledge and experience. It’s not about being bigger and stronger or more connected than others. It’s all about what you know and how much courage you have to exploit opportunities. If you can develop these skills, investment as a second income may be within reach, and sooner than you think.

But how do you develop the skills that would result in a cash-flow generating portfolio? The answer is a combination of education and experience. Education comes in handy for investors because it’s a way to learn without having to risk and lose money. Education, on the other hand, only goes so far. The best lessons are learned in the market, often after costly mistakes are made.

For people who don’t have the money to enter into a serious position within the equities markets, spread betting is an excellent alternative, one which will reliably generate the knowledge and experience that the investor will rely upon when and if they want to enter into the equities markets at some time in the future.

In the meantime, spread betting with ETX takes a close look at securities, commodities, currencies, etc., giving the investor a close up look at how their prices behave in real time. With practice and a growing awareness of the global events that cause these price fluctuations, the user will be able to start to predict these changes in advance. This, it turns out, is the point where you start making real money with spread betting.

Spread betting doesn’t require the user to buy anything, making it a much more affordable market to enter into (compared to ownership based equities). Users deposit funds which they attach to contracts regarding value predictions about the price changes of one or more financial entities over a specific period of time. Let’s say you think Stock A will be higher in 10 hours. If you make that bet and the price actually rises, you will get returns in proportion to the amount wagered.

This in itself is a great source of second income, but the knowledge and experience generated are themselves valuable. They transfer to other investment forms, giving the individual an edge usually won through trial and error in the equities markets. Because this is normally so expensive, spread betting is truly a great place to begin for investors of all stripes, one which can yield amazing profits of its own.