| The gold market was rather impressive in 2009. It | | | | And, when the Gold spread betting market is looking |
| started the year at $876 per ounce. It hit $1,226 in | | | | volatile you could always add a Stop Loss Order to |
| November, and whilst down a little, it still closed the | | | | your trades. Stop Losses are useful orders and a key |
| year at $1,129. | | | | risk management tool. When you place a trade you |
| But which way will gold go in 2010 and how to trade | | | | simply set a Stop Loss order as well ie an order to |
| it? | | | | close your trade if the market hits a specified level. |
| According to Simon Denham of Financial Spreads, | | | | Before you trade though, watch out for your |
| “In the long-term, for the sellers, the target | | | | emotions, they can play havoc with your |
| appears to be $1019. | | | | investments. Having a strategy and ensuring you |
| “For those who believe the market will go up the | | | | stick to it should help. |
| sky remains the limit. Having said that, with the US | | | | Do not try to ‘chase your losses’, ie trading |
| and UK aiming to rein in Quantitative Easing and with | | | | when you have just lost in order to recoup your |
| the ECB taking a hard line with Greece the days of | | | | funds. This usually results in poor trades and a further |
| easy liquidity may be limited. In this case we might | | | | loss of capital. |
| find that Money Supply starts to contract which | | | | If you are less familiar with this style of trading, or |
| could well leave Gold high and dry.” | | | | perhaps you would like to test your theories on |
| In my opinion one of the easiest ways to access the | | | | specific markets, then some practice may help you |
| gold market is via Financial Spread Betting. The wide | | | | understand the risks and rewards as well as the |
| range of markets, including Gold, Oil, Currencies, US | | | | various types of trading order, market volatility etc. |
| and UK shares, make it an interesting trading option. | | | | It may be an idea to have a look at a practice or |
| Of course, any investment provides the opportunity | | | | Demo Account. A number of spread betting firms |
| for making a loss. Share trading, buying a house and | | | | offer these for free. A Demo Account simply lets |
| exchange traded funds can all lead to losses. With | | | | you trade the markets with virtual funds. In other |
| spread betting, these losses can be larger than your | | | | words, it is risk free. |
| initial stake. | | | | Note that spread betting does carry a high level of |
| On the other hand, there are a number of positives. | | | | risk. Before trading, please ensure that spread betting |
| Spread betting is tax free*. You are not actually | | | | matches your investment objectives. Familiarise |
| buying and selling any assets or stock or shares. You | | | | yourself with the risks that are involved. Where |
| are simply speculating on the future price of a | | | | necessary, seek independent advice. |
| financial market. | | | | * Based on UK tax law. If you pay tax in another |
| Also, financial spread betting companies tend not to | | | | jurisdiction then tax law may vary. |
| impose commissions or broker's fees. | | | | |