How to lose money fast with Financial Spread Betting!
I have spent many months researching financial spread betting and have painstakingly devised a trading system that will reduce the size of your capital by 40% per month… the steps are easy to follow and it won’t take more than about 10mins per day to make quite serious financial losses.
First you need to open a financial spread betting account, derr!
Then you need to get hold of some share price charts from ADVFN or Yahoo and look at them for some different stocks that have interesting sounding names. I like stocks like Antofagasta and Astrazeneca and even Rio Tinto rather than shares like BP or Tesco which sound quite dull and dreary.
OK, so you’ve selected some shares to monitor and you’ve loaded a few historical price charts in your browser and you’re looking at them pretending that you know what all the lines, numbers and different colours mean. You now need to scowl a bit at the screen while rubbing your chin and, with the other hand, point at the screen waving your finger in a way that looks knowledgeable while muttering under your breath. Anyone stood behind you will easily mistake you for a competent and professional trader.
After you’ve bluffed this for a while you then need to open a position (i.e. place a spread bet) - if you don’t how else will you reach your target of decreasing capital by 40% per month? This is the crucial step, as a wrong decision here could go against you and mean that you end up making thousands rather than loosing money. To improve your chances of success you need to make sure that you don’t check any headlines / news etc and tell yourself that Bloomberg is a Belgian wine or something rather than a TV channel. Ignorance is key here as any bit of knowledge or understanding you have about the shares or market indices you are investing in could mean that you make a more informed decision and don’t lose as much money as could have done. Remember, the only ‘riches’ that ‘ostriches’ have is in their name, so take a leaf out of their book and keep that head of yours under sand!
Instead of logic, rationality and market information, your guiding light is your guts! Go with the ‘feelings’ you get about a stock, for instance, you might think that ‘Rio Tinto’ is some sort of south american holiday resort that you might like to visit… sounds fun, so I’d long (i.e. buy) that stock! ‘Astra zen eca’ may make you think of a beaten up vauxhall car favoured by Buddhist drivers and you may decide that’s a signal to short (i.e. sell) that stock. Make your decisions based on gut feel rather than cold hard data.
To maximise your losses it is important that you don’t obsessively monitor how the shares are doing as you may be tempted to cut your losses too early before they have troughed fully. As a general rule you should only check your financial spread betting account every couple of weeks or so.
Two other top tips that enable unprofessional traders to really lose money hand over fist are to set a stop loss this can automatiocally close your bet if it starts to go the wrong way i.e. if you’ve gone long on Rio Tinto and the shares actually start to rocket you’ll want to bail before you’ve made too much of a killing - stop losses are a good way of doing this. The last tip to really maximise your loss-making potential is to choose high priced stocks in volatile sectors such as mining. Stock like this can really deplete your reserves fast.
Remember, the above outlined share trading system does not come with any guarantees but we have found that by using it it is possible to make significant losses in a short space of time. If you are unlucky or misapply the trading system then you may find that you actually make a profit - we cannot be held accountable for such an eventuality so don’t be coming to us with your cheque book in hand trying to offload your gains on us!
If you have had ongoing success at donating money to your favourite financial spread betting company using different trading systems then let us know your story!
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Add comment October 23rd, 2006