What does it mean to spread bettors with the new regulations that come into force on August 1st 2018 from ESMA?
Well amongst all the noise, not that much if I’m honest.
The main impact of the new rules is going to see the margins on your trades higher.
This will mean that depending on your bank size, your ability to trade lots of different markets at once will probably decrease.
That isn’t such a bad thing though and personally I have never gone into the red with my margin anyhow. I have never or at least can’t remember having the dreaded margin call before.
You Will Now Need to be Selective
Overall you will now probably be set to trade fewer markets with a lower margin.
This again can work in your favour.
Trading like a lunatic on a full moon should be reduced to a minimum under the new regulations.
You will now need to choose your trades with a greater degree of consideration to preserve your margin.
You will also probably find that you will naturally be forced to become an expert in the fields that you trade.
Maybe you’ll start to consider trading just the major 6 currency pairs…. Maybe you’ll just trade the DAX or the DOW… How about ETF’s or only Shares?
This is in itself a trading strategy.
I have mentioned many times that becoming an expert in a tight set of markets or even a singular market can reap rewards.
These new regulations will give you the ideal opportunity to implement this idea.
I seriously don’t think that there is any reason to feel like you have missed the trading boat.
Far from it if you think about it.
There are more and more new opportunities to profit from every day.
There are new ETF’s to trade that are added to the likes of IG and CMC all the time.
The markets will still ebb and flow as always.
If you personally feel that you have missed your chance, then I’m afraid that you probably have. It is down to you to make things happen in your life.
Another Option… Remember the Old Days?
As you probably know, I have been trading with Vince Stanzione for considerable time now.
Most of my positions that I hold with his advice are held in one of my Schwab accounts.
This means I actually own the stock.
Just like how the hero’s of stock market trading started out.
You don’t just have to spread bet to make money from the financial markets.
Although this option does require a larger bankroll it is still a very realistic and valuable option.
Here is a quick glance at the impact that the new regulations will have on your trading margin.
It is far from the final curtain.