RE: Spread Bet30 May 2018 14:51
By far the majority of my trades these days is by spread bet.
True it can be nervy, but then so can holding the shares, either by paper or nominee...
The secret is not to treat it differently to any other investment.
We have here a good company with reasonable prospects and the underlying commodity trend is upwards. By using stops at the appropriate point it is possible to ensure that any potential losses are acceptable and limited!!
I know that any position I take has a specific quantifiable risk - For example at �1000 per point with a stop of 5p (or points) I am limited to a risk of �5000 on a deposit of �5000 for what is effectively a notional value of �20000 investment.
Spread betting also has the added bonus of being legally classed as gambling and thus carries no tax burden whatsoever......!!! (^_^), but if you follow the same disciplined methods used when holding 'physical' shares then it is well far less of a bet than racing or (for the lovers of it on here) football..
The gambling takes place when you give no credence to 'backside covering' and just throw everything you can at it. This is stupidity to my mind and has no place in investing.
Now, as to your specific position, BeardJ, I have done exactly that thing several years ago in the early days of GKP.
However, it was by means of 'top slicing' my shares and moving the funds to IG. only a proportion of which I used for GKP leaving me some funds for 'playing' with other stocks and a 50% held in case of any losses.
Remember too, that when SUFFICIENTLY in profit it is possible to move the stops to a guaranteed profit and thus negate any risk of loss.
If you are asking for opinions then you are already uncertain...
If you are unhappy with the discipline required then leave it where it is...