back to top

Yes! You Can Get Much Better Returns On Your Hard-Earned Money

If you’ve ever invested in the stock markets, you know you can lose the shirt off your back in no time at all. And for what? The returns in traditional markets are low. There are better ways to make money trading but you’ll have to read this to get a little insight.

Posted on

Wanna Make a Fast Buck?

When you’re trying to make a buck trading stocks, indices, currencies, or commodities, you may not know it but land-based brokers are not your best option.

For a stock to generate a return worth having, it really needs to appreciate sharply. If this happens, it usually takes a while – much more time than new traders and investors are happy with. You certainly don’t want to invest a chunk of change at a trading site only to have it obliterated in a few trades.

Go Against the Grain and Make that Trade

A great way to immerse yourself in the markets is what we call ‘contrarian’ options – you know those trading options that buck the trend and generate cash in rising or falling markets. We’re talking derivative trades like CFDs and the like. Nowadays, there are many ways to make a dollar and spread betting is one of them.

Top spread betting trading sites like ETX Capital offer precisely the type of contrarian trading option that we’re talking about. Say you’re looking to trade a stock like Google, or even a commodity like crude oil – go the spread betting route. You don’t need to purchase the underlying asset to make the trade; you simply take a position.

Less Outlay More Profits – Sounds like a Plan!

Well, for starters, you use leverage to open a position on an asset with a much smaller capital outlay. You then decide: is this a net long position or a net short position? Will the contract appreciate or depreciate? Once you’ve made that decision, leverage can work for you in a big way.

Le Pen? How About Putting Some Money on It

With so much going on in the financial markets right now, it’s really a great time to get involved in spread betting. The French presidential elections are running red hot, and the May 7 leg of the elections will prove telling. In the interim, the EUR is being fueled by plenty of volatility.

If you thought that was bad – consider the stress factors of the Brexit on the sterling. That’s a big one.

But how do you know when to buy and when to sell these options in the financial markets? This is truly the million-dollar question that everyone wants answered. There is no blanket solution to picking a winner in financial assets.

You’ve simply got to read the proverbial tea leaves. If investor sentiment is especially negative on the CAC 40 or the EUR, that means that a reversal could see tremendous upside movement. It is always a good idea to trade the trend. If there is money to be made, that’s precisely where you’re going to find it.

Watch what Speculators do – that’s a Good Tip

When investors are nervous about a major geopolitical issue like North Korea, Syria or the French election, that feeds into speculative sentiment. Many newbie traders think that fundamentals drive prices. That may sound good in theory, but it hardly ever factors in trading. That’s because trading is all about speculation. That’s what traders do – they take a position and they run with it. It drives the market up or down and it’s really important to understand the pulse of the market.

This post was created by a member of BuzzFeed Community, where anyone can post awesome lists and creations. Learn more or post your buzz!