According to FCA 84% of people who spread bet lose money – and now the spread betters are under investigation and stocks have tumbled.
2centView’s experience of spread betting, is that it is exactly that – betting or gambling, and in the long run, like casinos the systems are designed to make sure you lose!..
The only way to make money from stocks, is to buy quality companies for the long term.
The platforms built buy CMC Markets and PLUS500 (now owned by PLayTech) are quite impressive, giving you charts, research, volatility etc… all the things that make you feel like you are a star trader – but only a few can master these to make money.
Stick to buying stocks for the long term….
You can however have a punt on the stocks themselves, if you feel the FCA will not be too harsh.
2Centview recommendation is Play Tech, (LSE:PTEC), which is diversified, pays a dividend and owns PLUS500.
For the risk taker, CMCX may be worth a punt, but need to find where the bottom is as it is still in descent!
PTEC: FV = 1000 vs 820, Yield 3.5% Buy here at 820, take profit target 975, stop 740.
CMCX: FV = 160 vs 100. When a stock is still falling buy only half what you want to buy now or wait for the stock to consolidate…it could continue to drop – CMCX primary revenue stream is spread betting and investors seem to be assuming the impact could be more severe than the analysts are forecasting…