How do you make money in a down market?

During tough economic times, an investor must be wiser to be able to make money. Experienced traders have developed professional financial spread betting techniques to make money in any market - whether prices increase or decrease. 

The experienced investor knows that "prices are not set in stone"; there is usually a gap between the buy/sell price, which is called the "spread". Spread betting makes money from knowledge of how spreads change over time. 

Follow basic spread betting tips to ensure that you can profit in any market.

Spread betting allows traders to make money in any market

Calculate future spread movements, then place a short (sell) or long (buy) on stocks, commodities or indices; this is called spread betting. Volatile markets are constantly changing, spread betting makes money by anticipating the changes. Spread betting is especially attractive because experienced investors can make money in any market.

Spread Betting Tips

Develop a plan which includes how much money you will invest (only risk what you can lose), a strategy and the time-frame therefore. Knowledge is power. Be realistic about what you know and what you do not know. Understand the underlying differences between commodities, stock and indices. Test yourself on paper or with virtual accounts; ensure that your theories, models and systems are likely to bear fruit. Develop a winning strategy, improve it and modify it gradually to make it perfect.

Don't bite off more than you can chew.

It is difficult to track multiple company prices, around-the-world daily. Know the difference between "gambling" versus "trading". Are you simply wagering on "hunches" or making rational calculations? All traders must have a good computer, printer, Internet connection, cell phone, capital to lose and quick live reliable market information. The more advanced spread betting trader uses training, algorithms, computer calculations and special software programs for assistance. Many spread betting companies can assist with these helpful tools, acting as a guide for better options. Trading is about managing risk and reward, manage your risk through financial instruments like the "Stop Loss" or "Limit Order" selections. Learn from your mistakes, improve your spread betting strategy.

Compare the myriad of spread betting options before you.

Some companies are proven experts like igindex. Or turn to cmcmarkets, which is a global leader in spread betting on shares, indices, commodities, treasuries and foreign exchange. A more affordable option is city index. More trading options are available with capital spreads. Access the financial markets to your fingertips with finspreads. Sporting fans can use the sporting index. Different experience levels are served by saxo spreads.