It has become a cliche at this point, so often repeated as to be almost meaningless: most Americans are having trouble getting ahead, achieving their goals, and succeeding financially. Most blame debt and jobs, and we’re not saying these don’t have a big impact on the current situation. People with high debt have a hard time saving and investing. People without solid jobs with mid-to-high earning potential also find it hard to save and invest. How can people get out of this cycle?
This requires taking a look at the problem from a different perspective. Classic investment methods like stocks are still a tool for excellent earnings over the long term, but their popularity reflects the priorities and opportunities of an earlier era. If you had a pension in 1991, you were about to enjoy the most remarkable economic growth spurt in American history. And though we’ve enjoyed a long economic expansion in recent years, the returns haven’t been equally enjoyed by all segments of the population.
In short, people without much income who are looking to classic methods like the stock market are not going to be able to achieve their financial dreams without luck and superhuman willpower. While it’s still possible to succeed here, it may be better to investigate new investment methods that work for people of this generation and this economy.
One of the best is spread betting. Spread betting with a broker like ETX Capital gives users the opportunity to make money by predicting the future value of stocks, bonds, commodities, and more, without ever having to own them.
All it takes is a hundred dollars or so to get started with most brokers. This money can be put into one or more contracts that work like this:
The user picks a financial entity from the many available in the broker’s website, preferably one that the user knows much about.
The user decides how he thinks the price is going to change at the end of a specified period of time.
The user makes a contract by committing cash, then waits to see if the outcome agrees with his prediction (the price either raises or lowers, as anticipated).
If the outcome is in agreement with the original prediction, the user incurs earnings, the more that the price moved in the desired direction as well as the more money was committed to the contract. (Losing bets lose the original deposit)).
With practice and education, it’s easy enough to find events in the news which the user knows will influence the price of his chosen security (up or down). This is the time to make a contract, because the user can guess with reasonable surety that the price will actually swing in a certain way.
People who start spread betting as a time-killer usually don’t do due diligence, resulting in a lack of awareness which only produces inconsistent results. They’ll win sometimes, lose sometimes, with the regularity of a coin flip. This is not the case with experienced spread bettors.
With experience comes an intimate knowledge of the way prices change with relation to global events, cultural trends, new technologies, national disasters, and financial momentum. It becomes second nature to take in this information, to realize immediately what ramifications it will likely have for specific markets.
When this is the skill level acquired, spread bettors can turn this modern investment practice into a true second income, sometimes even exceeding and replacing their primary employment. It may sound challenging, but starting with a free no-risk account is a great way to learn the ropes without actually risking money. After that, you’ll be able to make money in a way that might surprise you.