It’s been a little quiet trading this week. Took 1 positive pip this week and stayed out of the market. No trading today, sometimes you can’t spend all day looking and the markets and just need to live!
Have a fair bit of work to do so will check in soon.
Managed to get myself ready for the day, keeping one eye on the market (how sad) and watching for some action around 5320, where it’s been stalling around for a while now. Turn my back for two secs to get some food and it’s shot straight through. Patience is a virtue. Shame I have to hop on the tube for a meeting.
8.50am Opened up my trading account this morning, and saw the criteria had been met for one of my rules. Entered the market long and coulg have taken a +7 pips profit, but “let my profits run, as advised in the “zen in the markets book”. The market was moving very slowly at the 5300 mark and I wish I had taken my profit, but you live and learn. Moved my stop to +1 and got stopped out on the market reversal. Small win, but overly happy that I am clearly learning and improving.
12pm– I’m sitting here, watching the market (FTSE 100, today) and missed two great opportunities to trade early in the day. Since then, the market has pretty much stalled out and nothing there are no clear entry indicators, based on the rules I’m following.
I’m really appreciating the amount the patience required to develop my spread betting abilities and the amount of discipline I’m exercising to stop myself jumping in the market because I’m getting bored.
Hopefully the market will pick up when the US opens around 2pm.
Had a quick check in on the FTSE and was looking to place a sell order (short) at 5300 but as soon as the US market opened, the price shot straight through 5300 and ended up at the 5320 mark. I had to step away for an hour, and didn’t miss much action.
I returned to find the market heading back down to the 5300 mark for the second time and was very tempted to go long (buy order). At the time I thought it was a gut feeling, but in hindsight it did match one of my trading strategies. I could have taken a pretty clean 10 pips and been done for the day.
Lessons for the day
1. Patience is clearly a virtue, even though it may be very tempting to get into the market, you have to be careful and make sure you’re not making up reasons to get in the market.
2.The early bird catches the worm. I missed two good setups in the morning, and had I not arranged to have furniture delivered first thing I may have got in on the action today.
On the plus side, I’ve spent the day (on and off) watching the market, learning how it moves and identifying clear entry indicators, without losing any money!
I was introduced to Spread Betting over the summer this year by a colleague of mine. They claimed to make more than their salary by placing Spread Bets, so I was naturally curious.
Before I continue, I just want to point out that if you start spread betting there are risks involved and you can lose more money than you put in.
I opened an account with IG index and began placing bets. The concept is pretty simple. You pick a financial product and bet whether the price will go up or down. Every point (pip) it moves in your favour, you win and vice versa.
For example, you £2 bet on the FTSE 100 going down in price. The price now is 5100 and reaches 5070 over the next hour. You close your trade and are 30 pips better off (30 x 2 = £60).
Seems easy, right? I wish. After a couple bets, I fast realised I had no idea what I was doing and began losing money. I didn’t lose a lot of money but decided to take a break and learn.
Fast forward a few months to today. I’ve had a little bit of training and done a bit of reading. I also follow the blogs of a couple other “newbies”, who are far more dedicated in their learning and have read countless books. I didn’t want to get overly consumed by spread betting (I’d still like to have a life!) so haven’t touched any books yet.
They say it’s 80% psychology, 20% knowing when and what to trade.
There’s so much I want to share about what I learnt during my first round of spread betting over the summer, compared to what I’m now doing, but I’m in a bit of a hurry this morning.
I’ll leave it at this: if you’re new to spread betting or any kind of trading, it’s probably a good idea to stay away from Foreign Exchange (FX) and anything else you may not understand entirely. I’ve found FX to be overly volatile and difficult to predict. Try your hand at something like the FTSE 100 or other indices.
I’ll do my best to post my daily stats and keep track of any new strategies I learn.