My IG experiment.https://www.ig.com
I have an account with IG stock brokers. They have a Demo Spread Betting Platform. You start off with $25,000. I blew $1500 messing around, but now I have placed a load of bets to the value of $15,000. I will be placing more deals until all the money is gone, making sure I have enough to pay for all my lost trades. I am using the 1 / 2 profit principle as outlined in a previous post of mine. I am acquiring the shares by looking at the Stock Screens on Finviz. You lose money as soon as you buy stocks as their sale value is below the buy now value. This is how my portfolio looks now ...
Already down nearly a grand! Finviz screen can be found for free here ...Finfiz Stock Screens
The trick is for all the REDS to turn BLUE, cos when they do it means profit. Only thing is though as this is an experiment I want to see if the 1 / 2 (loss to profit) principle works at least 50% of the time so I will leave the stocks play out fully (won't cash them in early).
The setup I have now is perfect for emulating stocks and shares trading across the board. As this is very much dependant on the stocks I pick only when I can beat 50% of my trades - as in win 50% or more - will I consider myself ready to trade properly using this type of system.
I am still trading but not in the above manner.
Another good thing about this is IG trades with loads of international markets so most of the stocks I pick (if not all) are active until 9pm (from 2:30pm). The UK Stock Market is open from 8am until 4:30pm. You can trade all day if you want with IG
Whilst writing this my loss has been halved. Only $500 down now.
As far as I can make out all Spread Betting is doing is showing you the profit and loss in real time, whereas with stocks and shares you have to work it out for yourself. Of course you can use leverage but even so I think it closely resembles actual trading as the same thing happens when you raise or lower your initial trade amount.
I am risking $400 dollars (2% of $20,000 - apparently you shouldn't risk any more) whilst attempting to profit 2x this amount - $800 on each trade. This is the 1 / 2 loss to profit system. You set this up by placing a stop loss and limit order. Very easy to do on IG.
Although the Demo Account is meant for Spread Betting it is perfect as a platform for this experiment.
To explain a little further a 'Stop Loss' is a point where you sell so you don't lose any more money. With the above trades I am placing it far enough away points wise in the hope of staying in the trade whilst the price fluctuates - as it does. I don't want to be kicked out of the trade too early. The 'Limit Order' is my selling price, which in this case is 2x the Stop Loss - as many points above the price as to equal $800. This is quite easy to work out as it is double the number used for the Stop Loss (you can see it quite easily on the IG Platform).
By the way Spread Betting is extremely dangerous as you can lose more than you started out with - a lot more! Stop Losses are essential for protection. With some brokers you can use 'Guaranteed Stop Losses' as 'Ordinary Stop Losses' can fail to kick in on a very fast moving market.