Episode 2 - Does Your Broker Trade Against You? Your Questions Answered with David Papier of ETX Capital
David Papier, Head of Sales Trading at ETX Capital swung by to give us his thoughts on Binary Trading as a good option for trading volatility-inducing big news events, and his belief that Brexit is a gift-horse opportunity for traders.
He also answered some tough questions about the alleged “zero-sum” game of spreadbetting brokers - do they trade against you? Do they need you to lose? In his view their business is far more profitable if you are successful and keep trading long term - they will just hedge off their net exposure and make the profit from the spread.
This sounds reasonable to us and, frankly, if we didn’t believe him then we wouldn’t be getting into the spread betting game!
Does Your Broker Lose When You Win, or Does My Broker Trade Against Me were two of first questions that came to mind when we looked at Spread Betting, so to have these answered on the record by David is tremendous.
Tom and Owen are using ETX Capital because we like it and find it most user friendly. If you also like it and want to support the show (we produce it for free!) then they have kindly offered our listeners a great deal if you sign up with this link.
As we are just launching we are recording three episodes in a week! It was supposed to be 2 but we had a lot of good stuff from Ilan last week so we stretched him to two…
As mentioned in our previous show notes...we haven’t begun trading yet so this week was largely getting ourselves set up to trade, buying a few books and watching some videos - basic reading on trading to mean we have a rolling start when we are up and running.
We read 'Spread Betting the Forex Markets by David Jones’. He is the ex head of markets at IG Index and has some great ideas to make sure we have the basics nailed down. He has a good section on a simple trading strategy with support and resistance lines. He’s also agreed to be a guest on the show soon….so watch this space!
Utilise the lessons learned for David Jones’ book and try and observe some action around support and resistance lines to see how we might like to trade them.
Full review coming on Episode 5 and hopefully a visit by David himself coming soon…
Get ahead of next week by reading Spread Betting the Forex Markets by David Jones. We’ll be reviewing the book on Episode 5.
Thanks for listening!
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Tom + Owen