The Spread Betting Trading System That Always Profits

Do you want to find a financial spread betting system that is simple to understand, completely free to use and perpetually profitable?

What I’m about to show you (for free) will become the serendipitous moment in your trading journey where you suddenly realise the secret ingredient to profitable trading.

There is no secret ingredient.

“You mother lover! What a let down!” I hear you cry but please, allow me to finish.

I know there’s no secret ingredient because I’ve been trading the markets since 2011 and I lost money consistently for the first 2 years of that journey chasing trading systems.

In 2013, and in large part owing to my practice of Tai Chi and Wu Wei, I suddenly realised how to make my own noodle soup. I now confidently call myself a profitable trader, having turned a consistent profit every year since 2013.

In 2018 I made over £25,000 tax-free profit spread betting the financial markets.

According to the stats, that puts me in the minority of people who spread bet.

So how did I do it? And how can you do it?

My Winning Spread Betting System Took Me Years To Develop…

There is no such thing as a single winning spread betting system.

How’s that for distilled trading wisdom?

Not as satisfying as the distillation above, I’m sure, but headache-inducing nonetheless.

And now you’re thinking “OK, Lee, I get it. I can appreciate that there is no single system that will make me a winner. But if that’s true, how do I become profitable?“

How My System Made Me Profitable

Here’s the thing. Before I get to it, you should know I’m not a teacher, trainer or trading guru.

I don’t even drive a Porsche and, believe it or not, I cut my own grass at least once a week in the summer.

I don’t pretend to be able to show you how to become a profitable trader. What I can do though, is share with you how I became a profitable trader.

And after you’ve heard all of my trading stories, maybe you’ll get lucky too 😉

Introducing My Do Nothing Spread Betting System

I tried all kinds of spread betting systems in those first 2 years.

I read a ton of books, bought 2 courses and taught myself technical analysis. I even woke up at 5am every morning to read the news!

And can you guess what happened after I did all that?

That’s right. I lost all of my money. No matter what I did; what system I applied, how much news I read, I still lost money.

The Turning Point

About 18 months into my journey, I had an epiphany.

I found myself pondering a rogue idea, “If I’m so bad at trading even though I do all of this stuff, why am I doing it at all? Why don’t I just stop doing it all and see what happens?“

So that’s what I did. I stopped reading news, learning systems, practising technical analysis and studying fundamentals.

Inspired by my readings of taoist philosophy and the art of Wu Wei – the action of non-action – I stopped doing ‘stuff’ and started doing ‘nothing’ instead.

After the first 3 months, it was clear that my do nothing approach was far more successful than my previous efforts.

Thus was born my do nothing spread betting system.

What Is The Do Nothing Spread Betting System?

It goes something like this:

“What do you like doing best in the world, Pooh?” Asked Christopher Robin.

“Going to your house and eating,” replied Pooh.

“I like that too,” said Christopher Robin, “but what I like doing best is Nothing.”

“How do you do Nothing?” asked Pooh, after he had wondered for a long time.

“Well, it’s when people call out at you just as you’re going off to do it, What are you going to do Christopher Robin, and you say, Oh, nothing, and then you go and do it.“

“Oh I see,” said Pooh.

“This is a nothing sort of thing that we’re doing now.”

“Oh I see,” said Pooh again.

“It just means going along, listening to all the things you can’t hear, and not bothering.“

This insightfully brilliant excerpt is one of my favourites from the charming little book, The Tao of Pooh, which you can buy cheap as chips used from Amazon if you enjoyed it.

It sums up my approach to trading pretty well.

The Simple Do Nothing Spread Betting System in Practice

After all the reading and all the learning, the place I ended up at was far different to that which I expected when I started.

And far simpler.

It’s so simple, in fact, that my ‘system’ only requires you to:

• Ignore all news
• Pay no attention to market analysts
• Don’t use Fibonacci ratios, Gann charts, Elliot waves or any other of the huge list of technical analysis setups you could apply
• Use a single trading screen
• Use a decent laptop
• Follow price-action only
• Buy on strength and sell on weakness.

Sounds great, right? Let me explain in 3 simple steps how you can apply the Do Nothing Spread Betting System to your own trades and shake your losing habit.

Step One: Trade Within Your Risk Profile

The do nothing spread betting ‘system’ is easy enough, but you still need to apply some basic (but essential) risk management to your trades. You still want to make sure you profit more than you lose.

The only way I’ve found to do that is to keep a close eye on your risk. Specifically, that means knowing exactly how much of your total capital you want to risk in each trade.

For example, if you want to start trading with a little money, say £1000, then you might not want to risk more than 10% in each trade. That means your total exposure to losses should be no more than £100 per trade.

What does that mean exactly?

Well, it means that if you want to trade Just Eat PLC, currently priced at 626, and you think the price is going to go up, then you want to set a Stop Loss at a position that:

1. Gives you enough room in the trade to not get stopped out too soon.
2. Does not exceed a total value of £100 if it was triggered.

The second part of managing your risk is making sure that your profitable positions make enough profit to exceed the total value of your losses. You might have heard this referred to as your risk/reward ratio.

A Simple Good Risk Management Trading Example

For example, if you trade 10 times and make a loss on 6 of them but make a profit on 4 of them, you need to make sure the total profit you make on the 4 winners is greater than the total loss on the 6 losers.

• 6 losing trades @ £100 loss per trade = £600 loss
• 4 winning trades @ £200 profit per trade = £800 profit
• Total profit (£800) – Total loss (£600) = £200 final profit over the 10 trades

Of course, in order to be able to fully appreciate what risk/reward ratio you need for your own trades, you need to know how often you win or, specifically, how many trades do you win out of 10?

Once you know how often you win, you can calculate the risk/reward ratio you need to become a profitable trader.

Step Two: Buy Strength. Sell Weakness.

Have you ever heard the expression “buy low, sell high?” I’m sure you have. It’s exactly the kind of quaint nonsense they teach you at school to obfuscate the truth. Like how humans have only been alive on this planet for 6000 years…

Anyway, buying low and selling high is complete nonsense.

In my experience, buying low and selling high (when applied to financial markets) only works for those who have inside knowledge that an asset is, indeed, ‘low’, and that there’s something going to happen in the future that is going to make it ‘high’.

You can apply critical thinking to any asset class and environment to try and forecast an outcome for eg. climate change = crop losses = food price increases, but you can’t guarantee timeframes. You just don’t know when something is going to happen – unless you do – but that’s probably not you and it certainly isn’t me.

Don’t Buy Low, Sell High. Buy Strength, Sell Weakness.

The only solution that has ever worked for me with any great consistency is not to try and predict things by buying low and hoping they’ll go higher; but by buying when you can see actual evidence that a price is going up or selling when the price is going down.

That means buying on strength and selling on weakness or, in other words, when a price is moving up, buy more of it. When it’s going down, sell it.

Step Three: Ride Your Winners As Long As You Can

The final part of the Do Nothing Spread Betting System is the hardest. It’s still relatively easy, but it requires a strong commitment to do nothing.

Take the case of Jesse Livermore, for example. Jesse was a trader who famously made $100 million dollars on the stock market in the 1920s.  He is often described as being one of the greatest traders ever, despite both making and losing fortunes in his career.

In one of my favourite Jesse Livermore quotes ever, he reveals this hugely insightful bit of trading wisdom,  “After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting.“

And in my experience, he was absolutely right. The largest profits I’ve made have always come from the positions I’ve held the longest.

Practical Tips for Riding Your Winning Trades as Long as You Can

1. Every time you think of closing a winner, remember my rhyme: no one knows where the market goes, and remind yourself winners can run for much longer than you think.
2. Trade what you see, not what you think. Until you see a clear indication that a trend is reversing, hold.
3. Forget the notion of being right or wrong. Think only in terms of profits and losses and accept that some positions result in losses and some result in huge profits. The only way to know which is which, is to hold until it happens.
4. Disassociate yourself from your trades and let be what will be. In the great words of the Taoist sage Lao Tzu, “do not contend.”

Final Caveat: If You Can’t Settle While Winners Are Running

As I said, the concept is easy. But surprisingly, sitting still and doing nothing is much harder than you think.

So, my final piece of advice is this:

If you’re unable to settle when your profitable trades are running high and you find yourself fidgeting, restless, anxious or downright afraid and unable to function without checking into your account every 5 minutes then close your position and take your profits.

You’ll probably regret it in a week’s time, but if it helps your state of mind and quality of life right now, knowing when enough is enough is always enough.

Want to Learn to Trade?

If you’d like to learn more about financial spread betting and the do nothing trading system, the system that helped me bank over £25,000 tax-free profit in 2018, then watch my YouTube series, where you can access loads of extra information, tips and, if you subscribe and click the bell, get early access to any videos I share where I talk about positions I’m considering opening – before I open them.

You can also subscribe to my mailing list below (or over to the right and top if you’re on a desktop) where I’ll send out things I’m thinking about doing before I do them.

None of which is advice, of course.

In the meantime, be happy. Trade well!