A lot of people are familiar with casinos, but did you know that it’s also possible to gamble on the stock exchange? On a stock exchange you trade stocks, commodities and index funds. By using a system you can build up a steady income by trading, but you can also earn money by gambling on the prices of stocks.
The best ways
You always have two options with trading: buy or sell. For example, you can buy or sell a stock, commodity or index fund. When you buy something, you make money when the price goes up and when you sell something you make money when the price goes down. If you choose randomly, your chances of success are fifty percent. The brokers that you can trade with require a minimal fee, which lowers your chances to 49.98%.
When you gamble on a trade, it’s smart to quit while you’re ahead. Statistically speaking, you won’t get so lucky twice in a row. The best way to gamble on the exchange is by trading in CFDs. These are contracts that you can use for leverage to turn an investment of 1000 pounds into a monster score.
Markets.com is a broker that allows you to trade in CFDs very easily and you receive a sign-up bonus of 20 pounds. Click here to create a free account with this broker.
Dare to make a move
If you really want to gamble, you need to time your move really well. Especially when important news comes out, your timing is very important. When the SNS Bank went bankrupt there were a lot of people who were going short on SNS’s stock. Because of the bankruptcy the stock price went down to zero and anyone who shorted that stock earned a lot of money.
Without leverage that would mean a profit of 100%. However, if you had used a leverage of 1:10 you could’ve profited 1000%. That’s a lot of money! Speculating can be very profitable, but don’t forget that these little gambles are extremely risky. If you would’ve bought a share, you would’ve lost 100% on your position!
Beware of gambling addiction!
Beware of gambling addiction when you’re gambling this way on the stock exchange. A lot of people have gotten addicted to the thrill of trading this way and have lost tremendous amounts of money because of it. It’s important that you keep in mind that it’s impossible to win consistently by gambling. Only gamble with money you can afford to lose!
If you want to earn money, you’ll have to do your research and select financial instruments based on certain criteria. Trading isn’t a gambling sport. By analysing the charts based on technical indicators, you can predict the price and increase your chances of making a profit far above 50 percent. If you are good at dealing with risks, trading is a great way to make money.