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Don’t loose your shirt trading the markets – combine spread bets with Fixed Odd bets to minimise risk

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By Vince Stanzione

More and more people are taking charge of their own destiny and trading the financial markets.  Unfortunately, many are unprepared for the self discipline, focus and commitment needed to become a successful trader.  My advice to those taking the plunge is to take a focused approach to trading and seriously look at the various strategies and tools available, like “Fixed Odds” financial betting offered at BetOnMarkets.com.

Fixed Odds betting has some big advantages over financial Spread Betting especially for those starting with smaller accounts. With Spread Betting you’re paid by the number of points you are correct by, with Fixed Odds you can make a large return with the market moving just a few points in your favour. With Fixed Odds betting you can limit your risk, as you don’t need to worry about using Stops.

Here are 8 Top Tips for Fixed Odds Trading

1.  You can make money from Up, Down or Sideways movements

With fixed odds you can make money from markets moving up, moving down or staying in a sideways range, a concept that even professional traders find hard to grasp, as they are conditioned to want to buy low and sell high.

Remember that markets fall faster than they rise so down bets can make quick profits. With fixed odds you can back currencies, shares and indices to fall all with limited risk and the most you can lose is your stake which can be as low as £10.

Sideways markets can be backed using Barrier Range bets. Until Betonmarkets.com introduced these it was very complicated to make money from range bound markets and you would have had to use options strategies such as selling options. Now you can do it with a simple bet and with strictly limited risk.

2.  Learn to love volatility

Fixed Odds allows you to place an Up/Down bet which basically means “I don’t know what the market is going to do but I think it’s going to move.”

As long as the market moves Up or Down and breaks above or below your predicted barrier you will be paid out.

3.  Use One Touch bets

Markets tend to be like lightening, they look for the path of least resistance.  When a market breaks above a resistance (ceiling) level you will find the market will carry on in the same direction for at least a few more days. Just as a market breaks down through a Support (floor) the market carries on falling until its next support.

Using a One Touch bet traders can back these events, remember you’re saying the market just needs to touch the given level and that would be enough to payout.

Gold is a perfect example. It started building momentum and broke over the $1400 an oz level, looking at the chart I could see $1450 was the next potential target, so I placed a “ONE TOUCH” bet that Gold would touch $1450 within the next 14 days. Gold went on to hit $1460 within a few days, so the bet paid out. Of course, if Gold did not touch $1450 during the 14 days then my bet would have expired worthless.

If a bet is going against you, there is always the option to sell the bet back and look to salvage some of the stake.

4.  Balance Risk and Reward

Everyone likes the big payouts; however, you have to remember there is a reason why you’re being offered a 300% return, that’s because there is a fairly slim chance that the bet will not payout. On the opposite end a 1% return is hardly going to make you rich and should the bet go wrong you would lose a large stake.

The simple answer is to look for a balance and mix and match trades.

5.    Be a disciplined trader not a reckless gambler

After a good run many become over confident and start taking stupid risks. After a poor run many try to play catch up and want to make their losses back fast, both actions are the easiest way to lose your trading capital. Many books have been written on “Money Management” with complicated formulas. The key is not to risk what you can’t afford to loose.

6. Run two bets together, trading a pair

Trade two different markets that have a negative correlation. For example, Gold and the US Dollar. Gold is priced in US$ so if the dollar weakens then Gold tends to rise. Gold is also used as a hedge against falling currency values. So you could look to have a Bear bet on the US$/Euro and a Bull Bet on Gold.

7.    Seasonality – History does repeat itself in many markets

Technical analysis is used widely however seasonality is not as well understood. Seasonality is using the calendar and past results to forecast the likelihood of the same happening again. For example, Gold tends to be strong in September where as stock markets tend to be weak. Periods around market holidays such as Christmas, Thanksgiving, Independence Day and the first few days of the month tend to be stronger. The well known saying, “Sell in May and go away,” whilst not perfect, has worked as a good base for a trading system. You will also find seasonality in commodities and some currencies.

Watch the Yen strengthen around March time as large Japanese companies close their financial books and tend to put Yen back on their balance sheet.

8.  Combine Spread Bets and Fixed Odds

The FTSE100 is going down and you have placed a spread bet to back this idea. After a week or so the FTSE100 starts going up or sideways, you could close your spread bet or you could leave it open and look to place a fixed odds bet to run alongside it, maybe a barrier range, so whilst the market is going sideways your spread bet will not be making money but at least your fixed odds bet will make a profit.

Are you missing out?

Whether you’re a beginner, who wants to obtain some stock market exposure with limited risk, or you’re an experienced trader who uses fixed odds trading to hedge other strategies, there is a lot to be said about the benefits of Fixed Odds trading. Why miss out? Log on to www.BetOnMarkets.com today and quote GBFR in the Bonus code field during signup and get a £20 FREE trade.

 

 

 

Finance

Bank of England’s Haldane says inflation “tiger” is prowling

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Bank of England's Haldane says inflation "tiger" is prowling 1

By Andy Bruce and David Milliken

LONDON (Reuters) – Bank of England Chief Economist Andy Haldane warned on Friday that an inflationary “tiger” had woken up and could prove difficult to tame as the economy recovers from the COVID-19 pandemic, potentially requiring the BoE to take action.

In a clear break from other members of the Monetary Policy Committee (MPC) who are more relaxed about the outlook for consumer prices, Haldane called inflation a “tiger (that) has been stirred by the extraordinary events and policy actions of the past 12 months”.

“People are right to caution about the risks of central banks acting too conservatively by tightening policy prematurely,” Haldane said in a speech published online. “But, for me, the greater risk at present is of central bank complacency allowing the inflationary (big) cat out of the bag.”

Haldane’s comments prompted British government bond prices to fall to their lowest level in almost a year and sterling to rise as he warned that investors may not be adequately positioned for the risk of higher inflation or BoE rates.

“There is a tangible risk inflation proves more difficult to tame, requiring monetary policymakers to act more assertively than is currently priced into financial markets,” Haldane said.

He pointed to the BoE’s latest estimate of slack in Britain’s economy, which was much smaller and likely to be less persistent than after the 2008 financial crisis, leaving less room for the economy to grow before generating price pressures.

Haldane also cited a glut of savings built by businesses and households during the pandemic that could be unleashed in the form of higher spending, as well as the government’s extensive fiscal response to the pandemic and other factors.

Disinflationary forces could return if risks from COVID-19 or other sources proved more persistent than expected, he said.

But in Haldane’s judgement, inflation risked overshooting the BoE’s 2% target for a sustained period – in contrast to its official forecasts published early this month that showed only a very small overshoot in 2022 and early 2023.

Haldane’s comments put him at the most hawkish end among the nine members of the MPC.

Deputy Governor Dave Ramsden on Friday said risks to UK inflation were broadly balanced.

“I see inflation expectations – whatever measure you look at – well anchored,” Ramsden said following a speech given online, echoing comments from fellow deputy governor Ben Broadbent on Wednesday.

(Editing by Larry King and John Stonestreet)

 

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Finance

Bitcoin slumps 6%, heads for worst week since March

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Bitcoin slumps 6%, heads for worst week since March 2

By Ritvik Carvalho

LONDON (Reuters) – Bitcoin fell over 6% on Friday to its lowest in two weeks as a rout in global bond markets sent yields flying and sparked a sell-off in riskier assets.

The world’s biggest cryptocurrency slumped as low as $44,451 before recovering most of its losses. It was last trading down 1.2% at $46,525, on course for a drop of almost 20% this week, which would be its heaviest weekly loss since March last year.

The sell-off echoed that in equity markets, where European stocks tumbled as much as 1.5%, with concerns over lofty valuations also hammering demand. Asian stocks fell by the most in nine months.

“When flight to safety mode is on, it is the riskier investments that get pulled first,” Denis Vinokourov of London-based cryptocurrency exchange BeQuant wrote in a note.

Bitcoin has risen about 60% from the start of the year, hitting an all-time high of $58,354 this month as mainstream companies such as Tesla Inc and Mastercard Inc embraced cryptocurrencies.

Its stunning gains in recent months have led to concerns from investment banks over sky-high valuations and calls from governments and financial regulators for tighter regulation.

(Reporting by Ritvik Carvalho; additional reporting by Tom Wilson; editing by Dhara Ranasinghe, Karin Strohecker, William Maclean)

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Finance

Britain sets out blueprint to keep fintech ‘crown’ after Brexit

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Britain sets out blueprint to keep fintech 'crown' after Brexit 3

By Huw Jones

LONDON (Reuters) – Brexit, COVID-19 and overseas competition are challenging fintech’s future, and Britain should act to stay competitive for the sector, a government-backed review said on Friday.

Britain’s departure from the European Union has cut the sector’s access to the world’s biggest single market, making the UK less attractive for fintechs wanting to expand cross-border.

The review headed by Ron Kalifa, former CEO of payments fintech Worldpay, sets out a “strategy and delivery model” that includes a new billion pound start-up fund and fast-tracking work visas for hiring the best talent globally.

“It’s about underpinning financial services and our place in the world, and bringing innovation into mainstream banking,” Kalifa told Reuters.

Britain has a 10% share of the global fintech market, generating 11 billion pounds ($15.6 billion) in revenue.

“This review will make an important contribution to our plan to retain the UK’s fintech crown,” finance minister Rishi Sunak said, adding the government will respond in due course.

The review said Brexit, heavy investment in fintech by Australia, Canada and Singapore, and the need to be nimbler as COVID-19 accelerates digitalisation of finance all mean the sector’s future in Britain is not assured.

Britain increasingly needs to represent itself as a strong fintech scale-up destination as well as one for start-ups, it added.

The review recommends more flexible listing rules for fintechs to catch up with New York.

“Leaving the EU and access to the single market going away is a big deal, so the UK has to do something significant to make fintechs stay here,” said Kay Swinburne, vice chair of financial services at consultants KPMG and a contributor to the review.

The review seeks to join the dots on fintech policy across government departments and regulators, and marshal private sector efforts under a new Centre for Finance, Innovation and Technology (CFIT).

“There is no framework but bits of individual policies, and nowhere does it come together,” said Rachel Kent, a lawyer at Hogan Lovells and contributor to the review.

Britain pioneered “sandboxes” to allow fintechs to test products on real consumers under supervision, and the review says regulators should move to the next stage and set up “scale-boxes” to help fintechs navigate red tape to grow.

“It’s a question of knowing who to call when there’s a problem,” Swinburne said.

($1 = 0.7064 pounds)

(Reporting by Huw Jones; editing by Hugh Lawson and Jason Neely)

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