Knowledge to action

With interest rates rising, many people are turning their attention away from property investing and into the fastest growing way to trade the stock market - Spread betting.

With companies like Barclay's Stockbrokers now offering spread betting to their clients, and the starting capital required as low as £500, as well as having a tax free status on all profits, many people are jumping in - with varying results...

Greg Secker is the Head Trader and CEO of Knowledge To Action , home of the Traders University programme. Traders University teaches beginners and intermediates how to make an immediate monthly cash flow using proven strategies combined with risk management. We asked him his tips for getting it right in the stock market.

As a coach to the trading community I am always approached by new and intermediate traders who are hell bent on making a quick killing, yet fail to weigh up the risks.

The rules we learn from our daily lives are just so very different from those in the trading world – and it’s the reason why we are practically hardwired for failure from the start. For example, throughout life most of us associate the following “Exciting = Good” (think Casino hall versus Examination hall).

Apply this to the trading world and it spells disaster, People mistake potential trades that are exciting looking and moving for a profitable trades only to see the position reverse and almost immediately run into a loss.

The answer? Put simply if a trade is already moving it’s too late. Instead look for trades that are about to breakout and enter for a low risk entry following a pull back, and try to place your stop loss close to a consolidation.

Greg’s top 5 tips for a Successful Trading Career

1. Master Risk first, not last Trading is all about limiting individual trade risk to 1%. Never allow a losing trade to eat more than 1% of your trading capital – learn to trade size!

2. Get a mentor just like learning to drive, you need interactive regular feedback on your trading skill. Many people over estimate their ability early on. Remember what trading strategy works today may not work tomorrow – so get around people that navigate the terrain daily and can focus on you

3. Look for boring trades not exciting ones If a stock is moving in a sideways range, look to enter the trade the moment this established range breaks out. Always use a stop loss – and remember panic buying leads to panic selling!

4. Never trade with money you can’t afford to lose Sounds simple? Most people over trade and throw too much in too early on, Use money that if you lost 50% of you wouldn’t be too bothered. Understand the risks.

5. Let profitable trades run, cut losers fast Want to know the difference between a successful trader and a loser? Successful traders cut losing trades in nano-seconds, losers hang on in.

Traders University is run by Knowledge to Action Ltd. Their 1-1 coaching and live interactive training ensures that every trader starts successfully, producing immediate, tangible results.

The programme has been carefully structured, to ensure each trader is fully prepared, and includes pre-course coaching (orientation), full immersive training and a six month graduate mentoring program with a full-time professional trader coach.

Is Spread Betting for you? Knowledge to Action regularly hold free seminars across the U.K. and Ireland the perfect opportunity for you to decide. To register, click here or call 0870 766 5234.

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Please note that this page and information is supplied by Knowledge to Action - please contact a financial adviser with any queries