What Is Better/safer To Trade Out Of Spread Betting Or Options Trading And Is Recommended For A Uk Resident?
I am 18 years old and I want to choose one investment instrument out of spread betting or options trading to trade stocks with. I know about both spread betting and options trading and some of their ossociated strategies. I have had practice spread betting and I am up 116% since I first started 4-5 weeks ago. I read a book called “how to make money trading” by the guy who did the million dollar traders TV programme; Lex Van-Dam or something, and in the book he suggested that you should leave options to someone else as their is only a few people who actually make money with options trading. What I would like to know is what out of options trading or spread betting would be best suited to a UK resident, and which out of the two is safer to trade and best recommended for a UK resident? Please give me a resonable answer as it would be very much appreciated. Thanks.
P.S. sorry its so long.
Let’s get one thing straight. It is not easier or harder to trade different sorts of instrument. Basically you have to get right the movement of the underlying. Let’s say you think BP is going up. If it goes down then you lose money on whatever instrument you trade.
Spread betting is definitely best for an investor located in the UK as gains are tax free while returns from options are liable to capital gains tax.
what you are describing is gambling, not investing and there is no way you always make money – chances are in real life – you will probably lose more than win with those kind of things