Spread Betting and Technical Analysis Courses – How Do They Help You?

By karlvcohen on January 22, 2011 In Currency Trading

Financial spread betting is harder than it appears especially if you have randomly tried to pick a market direction without any technical analysis skills – and this is something you would have probably found out, had you tried your hand at it. Making a profit by trading the markets is definitely a different story even though you surely can understand the concept of how spread betting works in just 10 minutes by perhaps playing around with a simulator account. Yes, you have also probably read of stories of people becoming rich spread trading the markets, however there are far more investors who have ended up losing money.

So between the traders who succeed and those who fail, what is the difference? This is a more difficult question than it may first appear. To start with successful traders have devised a trading system with clear entry and exit trade levels and know when they are on a winning trade or fighting a losing battle. They don’t hesitate to close positions for a loss and admit it when they’re wrong. With those omnipresent emotions of fear and greed that all too often lead spread traders astray, when it comes to trading psychology, surely even if emotions can end up being a trader’s downfall there must be something else to it?

How to devise a trading system is the question to ask? What’s this trading system all about? More often than not a trading system is based on technical indicators which is it essential to have a solid grasp of technical analysis and an understanding of the way the markets work. Without taking some time to invest in your own educations and learn about the financial markets, you may find that it is really difficult for you to become a successful trader.

So what is technical analysis? So technical analysis is? Understanding how prices move – technical analysts believe that chart patterns are a reflection of crowd behaviour, which behaviour is reflected in the price of the share or company – is what technical analysis is all about. That past prices can help to predict a future market direction – is also what they believe. Your first task here is to learn the basic skills involved in reading charts, so as to be able to identify market trends. You can either attend a technical analysis course or if you are lucky you can try befriending someone who is already successful trading the markets, or learn about technical indicators and charts by reading a book.

Most spread betting providers now offer sophisticated tools and charting packaged to help traders make their research and as it is the use of charts and technical analysis is very common in the financial spread betting world. Therefore, analyzing charts would surely be something that you need to learn indeed.

To conclude, investing sufficient time and effort learning about technical analysis is what is required when working as a trader in the spread betting field. Your journey is likely to be longer and probably will end up costing you much more in the end, if you try trading without taking any technical analysis course.

Author is an expert on spread betting course and technical analysis course.