Butmarketsgoupmoreoftenthantheygodown,soashortsellerneedstobeconfidenttheyareright。

And,intheoryatleast,anindexcanrisetoinfinity,meaningifashortbetbackfiresitcandosoveryexpensively。

Soherearethreewaystomakesureyoudon’tgetcaughtout。

Keepyourbetsizelow

ThroughabrokersuchasFinSpreads,forexample,youcanbetaslittleas10pperpointforthefirstcoupleofmonths。

Sureintheexampleabovethatlimitsyourprofittojust£10(100pointsx10p)butitalsomeansyoucanpractisewithoutlosingyourshirt。

Usestoplosses

Thesegetyououtofalosingtradeatapredeterminedprice。

So,forexample,astoplossintheFTSEexampleabovewouldbeabuyorderat,say,5,450points。

Shouldthemarketriseratherthanfall,yourlossislimitedto50pointstimesyourbetsize。

Don’tbedupedintobettingtoosoon

Sureinthesevolatilemarketstherearelotsofopportunitiesforspreadbettersincurrenciesandindices。

Butdoyourhomeworkfirst–getgoodatreadingchartsandspottingresistancelevelsforexample–beforeyoutrade。

Bettertomissoutonafeweasywinsasanovicewhileyoulearntheropesthanbecomesomeoneelse’ssofttarget。

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