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Winning ways to spread betting

INVESTMENT GUIDE: Have you discovered the delights of spread betting yet? As a good way for investors to trade the markets, it's hard to beat.
July 2, 2008

Have you discovered the delights of spread betting yet? As a good way for investors to trade the markets, it's hard to beat. It offers access to a huge range of financial assets around the world, all from a single account. With spread betting, you could trade Google shares, the Hang Seng, German bond futures and the euro/yen rate on the same screen. And you could do so without having to risk more than a few hundred pounds.

Whether you're totally new to spread betting or if you've already dipped your toe in the water, this edition of Masterclass should help to improve your money-making prospects. For a simple introduction to the subject, check out our guide ''. We explain the advantages as well as how the bets actually work.

Effective trading almost always involves using charts to identify opportunities, as well as entry and exit levels. In '', we introduce the theories of WD Gann, one of the greatest traders of all time, and show how his ideas still work today. Just as important as coming up with ideas is controlling your risks.

With spread betting you can make money as easily in falling markets as in rising markets. However, short-selling isn't just buying in reverse. It carries its own risks and requires different skills, as we demonstrate in '!'. Next, Market wizard Rakesh Shah suggests four good habits you can adopt in order to become a more profitable spread bettor – ''. Next, he outlines how to minimise losses in '.' and shows how to use a popular momentum indicator to improve your strategy – ''

Picking the right spread betting firm to deal through is a key decision. In '', Rakesh talks through some of the main points for your checklist.