Nothing beats the anticipation and ultimate satisfaction of seeing your prediction play out in real time and win. However, after you cash out on your wins, what is your next step?
Profits from your wins can be lucrative. But, without a proper financial plan, they can quickly vanish on quick purchases and unplanned and excessive betting. But what if you could turn these profits into an even bigger opportunity for investment?
You can invest with Moneyfarm, an investment option that can see you using these gains to build solid and long-term wealth. The best part? Your wealth continues to grow without having to take any additional action. So, how exactly do you invest your profits in these passive investment options? Let’s find out.
What Is Spread Betting (and Why It’s Not the End Goal)?
Spread betting is a unique type of wagering where you speculate on the direction or outcome of an event in a financial market without owning the underlying security. With spread betting, your payoff is typically based on the accuracy of your wager rather than a “win or loss” outcome.
Spread betting lets you bet on any security, whether a stock, index, or commodity. With spread betting, if your speculation is right, you get your profit. If not, you may lose more than your stake. While spread betting is highly risky, its rewards are equally generous.
This explains why it is a good idea to invest the profits you get rather than chasing more wins with more spread betting. This allows you to turn your profits into longer-lasting and sustainable investments. Similarly, if you lose, don’t chase your losses; rather, accept your fate and try another day.
Step One: Secure the Win
Before you plan and execute your investment plan, the first step is to secure your wins. Here’s how you do it:
- Withdraw your wins after every profitable trade.
- Set aside a percentage for long-term investments and congratulate yourself with the rest (or do whatever pleases you).
- Opt for a dedicated account for long-term funds to prevent mix-ups with your trading capital.
Step Two: Shift Gears to Long-Term Investing
Remember, trading and investing aren’t the same thing. Trading is a short-term and speculative activity that, if it bears positive results, the profits are what you use to invest. Investing is long-term and strategic.
You can use your spread betting wins to invest in diversified portfolios to reduce risks and to be able to build your wealth over time. This is where services like Moneyfarm come to save the day. These services curate personalized portfolios based on your financial goals and risk profile.
This ensures your profit works for you and not the other way around. As you start this journey, you can start with small investments, testing the waters, then automate deposits, and ultimately, grow. The best services will also give you expert guidance, ensuring you are on the right track.
Turn the Win into Wealth
Winning a spread bet is exciting. However, you can feel even better and enjoy the fruits by turning your win into long-term financial investment and stability. Fortunately, resources like Moneyfarm can offer you the guidance you need in turning your spread betting wins into stable, growing investments, setting you on the path to financial independence. So, the next time you win, cash in, strategize, and invest – don’t just celebrate!
