5 Spread Betting Books That Will Make You a Better Trader
Updated: Nov 7
Spread betting isn’t exactly complicated, but if you are new to the game it can be hard to know where to start. Thankfully, there are plenty of spread betting books that can help you out with everything from determining your trading strategy to spotting market trends to executing your trades and more.
Here are the best five books on spread betting that every new trader should read.
What is spread betting?
Spread betting has been around for over 25 years and its popularity continues to grow with traders of all experience levels.
A typical spread bet involves buying (or selling) an option between two different stocks or assets (this is known as the call/put), but at two different prices.
The point of difference between an option and a spread bet is that in an option, the trader only needs to predict whether the price will rise or fall, while in a spread bet, they have to guess whether it will rise or fall by more than the cost of entry.
In addition, if you're wrong in your prediction with an option, you get unlimited loss potential while with a spread bet there is limited risk – unless your trade goes catastrophically wrong.
How do I start spread betting?
With spread betting, you can make a trading profit without owning any assets. How? By speculating on changes in the price of the underlying asset (usually equities and currencies).
Starting with spread betting will be quick and easy when you are using one of these 5 books as your guide
What are the different types of bets?
Different types of spread bets, the way to make money by predicting the outcome of an event. The different types of spread bets are:
(i) Trend betting - a way to predict which direction prices will be going, and is popular for stocks or indices;
(ii) Range betting - taking advantage of fluctuations in prices to increase returns by buying low and selling high;
(iii) How about soccer betting?
This is for football aficionados who want some added excitement with their fixed-odds gambles. However, there are some differences from how you bet on footie compared to how you might do it in horse racing. In soccer betting the odds generally start at 100-1 against any side winning and rise as more people gamble on that team.
What are the trading strategies?
These are the five most popular trading strategies out there, as well as what you can expect from each one.
1) Scalping - This is the easiest to use and an excellent way to get quick returns. A scalper makes many small gains throughout the day that add up over time to generate sizable profits. They do this by entering into many small trades with an incredibly short holding period for each one, just minutes or seconds at the longest.
2) Day Trading - This is similar to scalping but instead of taking profits on every trade you have throughout your day, you focus on taking profits in increments of one day only.
Which book should I read first?
How to Become A Day Trader by Marty Frankel is an essential read for anyone who's ready to delve into day trading.
The book, published in 2002, is one of the earliest books written on the subject. It's got a concise and succinct description of everything you need to know, which makes it a perfect first step in your journey towards becoming successful as a trader.
If you're not interested in day trading but would rather trade stocks or commodities then A Short Course on Forex Trading: Technical Analysis by Julian Phillips would be another great place to start your research.
A Short Course on Forex Trading covers the basics of what you need to understand if you're going to trade currency pairs; technical analysis, fundamental analysis and how prices are quoted. Written in 1992, this book has been updated with the latest information so that it remains relevant and up-to-date.
Other must-reads include Options As A Strategic Investment by Lawrence G. McMillan and Trading In The Zone by Mark Douglas - both offer valuable insights from traders who have spent decades mastering their craft.
Who are these authors and what do they teach you?
The world of financial trading can be confusing and overwhelming for newcomers. We make it our goal to equip you with the knowledge to help you make informed trades.
Brian Shannon is a successful investor and author with years of experience in trading. The New Trading for A Living by Dr Van Tharp is another worthwhile book that teaches you how to trade in stocks, options, and futures markets from the perspective of someone who has been actively involved in financial markets for more than 40 years.
Dr. Van Tharp describes his journey as an investor-trader-educator who set out many years ago to develop a systematic approach to the art and science of winning in the stock market that could be studied and applied by individual investors.