Invest In Spreads Rather Than Stocks

By | December 12, 2011

During the financial times that we live in there have been various claims and statements on where you should put your money.  Ultimately the decision is down to the investor, and with savings accounts offering extremely poor returns on money at the moment; many of us have decided that we need to move our money into more risky investments in order to get a good return.  Whilst this may be seen as frivolous by some, investing in different stocks and shares can be exciting, and also give you the opportunity to get great returns on money which otherwise would be helping you in no way at all.  But is there an alternative to investing in stocks and shares?  How about something that costs far less, can see similar returns, and actually gives you entry into a market that could otherwise be completely closed to you?

Find a quick way into those big companies

Investing in spreads rather than stocks can do this.  Spread betting has been around for many years, and since the financial meltdown around the world it has seen a rise in popularity.  First of all, we have to remember that gambling on the stock markets is dangerous, but conversely this is a safer way of investing in stocks rather than spending thousands on a small piece of the pie.  So could investing in spread betting be more palatable to most of us rather than trying to find successful stocks to invest in?  It has to be said that spread betting can see big returns on your investments in a short space of time, and if you manage to play the stock markets well, you can see returns which exceed the amount of income possible from investing in exactly the same stocks.  For example you could bet on Apple’s stock increasing, at only a £1 or $1 a point, rather than the thousands per point it would potentially cost to buy actual stock.  This means that you can invest in the big blue chip companies without actually ever owning any stock, but still taking advantage of their success.

Remember to monitor your success

Obviously the danger with this is that you get carried away, unlike the investment manager you may have for your stocks and shares, they probably wont have any input on your spread betting activities.  This means that you need to have complete control over what you are doing, and not get carried away if you begin to see big returns on your investments.  Most spread betting firms will allow you to put limits on investments; profits and losses, meaning you still have ultimate control over your finances.  This sets it apart from gambling in the sense that your losses will always be in your control, to an extent.  Consequently investing in spreads can see you get great returns on your investments, with the ultimate control in your hands.  The most important thing to remember is that you don’t get carried away, you need to be responsible with your money, after all, it is your future profits you are potentially risking if you push too hard.

 

Author Bio: This article was written by James from spreads.org.uk.

 

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