A good start for a newbie?

[direkt]

Hi Everyone,

I'm very new at spreadbetting, and have no more than 3-4 weeks experience at physically doing it, but I do have patience, common sense, and my aims are long term, due to the fact that I realise that the knowledge gained from experience counts a heck of a lot. So I'm not in it to make huge sums of money in a short space of time. I want to learn over time.

Currently this is what I'm doing:

Placed £500 in my account to begin with. Had a good look at the percentage movements for certain shares/indices, and picked 6 which moved around a fair bit, which I could learn more about and keep in my 'watchlist'.

From those, I have basically watched for fairly large movements over short periods (but not massive movements), and then placed between 20p to 40p a point on one of those shares/indices. I have done this because, by watching charts and understanding that shares/indices will go up and down over a period of time, I can be fairly confident that it will move to a limit which i set at probably 15 points away from my buy/sell price over time. Without setting a stop loss, I have faith in my £500 deposit, that if things start to go wrong, I have enough within that amount for it to recover (as it would need to go up/down a fair amount for me to lose it all).

OK, so I don't make big sums of money each day, but I'm in profit, and I think, I'm learning just by paying attention to the prices/movements/trends. The next step is to start researching my 'watchlist' companies properly i.e. on forums (although I'm not aware of which the best one's to get trustworthy/early news/whispers from?)

I've always tried to have Bloomberg on in the background, but to be honest, it's not much of a help as the information is always received after things have happened. But that's probably me just being new to this, and being a bit stupid!

I think I'm just looking for someone to read this post and either reassure me that I've started in the right way, or, to offer me better ways at going about it or indeed some welcome advice. Your experiences would be gratefully received too.

Thanks for reading,
JJ

 

[shadowninja]

The next step is to start researching my 'watchlist' companies properly i.e. on forums (although I'm not aware of which the best one's to get trustworthy/early news/whispers from?)

I am reading this as you wanting to know which forum give tips. Not the best approach as you don't know who is trying to encourage others to buy a failing stock that they have already bought and have as a losing position.

 

[direkt]

Shadowninja, thanks for the advice, much appreciated. I totally see and understand your comments... feel a bit stupid really, as that should have been obvious to me!

 

[MelSummer]

Hi all,

I'm completely new to spread betting also. I opened an account with SpreadCo a little while ago with £100 and currently I'm up to £250, I don't think this is a bad start but I've also been reading that starting too well can be bad as you get overconfident and then lose it all. I hope this will not be the case with me. I'm using a trading strategy that I found here http://spreadbettingbeginner.com/sp...super-trend-strategy-spread-betting-strategy/ Has anyone else come across this site before or is trading using this strategy? The site seems genuine enough and I read the blog entries fairly regularly. I guess I just want to know if I'm doing the right thing for the long term. So far I have started well and I would like that to continue. If anyone has any advice or help they can give me that would be very much appreciated.

Mel

 

[Black Swan]

the supertrend repaints worse than Stevie Wonder trying to do paint by numbers...it's 5hite..As for the link to that site I really get fed up with these 100 quid websites that do more descredit to the industry than the industry does itself..Why bother?

 

[Black Swan]

Hi Everyone,

I'm very new at spreadbetting, and have no more than 3-4 weeks experience at physically doing it, but I do have patience, common sense, and my aims are long term, due to the fact that I realise that the knowledge gained from experience counts a heck of a lot. So I'm not in it to make huge sums of money in a short space of time. I want to learn over time.

Currently this is what I'm doing:

Placed £500 in my account to begin with. Had a good look at the percentage movements for certain shares/indices, and picked 6 which moved around a fair bit, which I could learn more about and keep in my 'watchlist'.

From those, I have basically watched for fairly large movements over short periods (but not massive movements), and then placed between 20p to 40p a point on one of those shares/indices. I have done this because, by watching charts and understanding that shares/indices will go up and down over a period of time, I can be fairly confident that it will move to a limit which i set at probably 15 points away from my buy/sell price over time. Without setting a stop loss, I have faith in my £500 deposit, that if things start to go wrong, I have enough within that amount for it to recover (as it would need to go up/down a fair amount for me to lose it all).

OK, so I don't make big sums of money each day, but I'm in profit, and I think, I'm learning just by paying attention to the prices/movements/trends. The next step is to start researching my 'watchlist' companies properly i.e. on forums (although I'm not aware of which the best one's to get trustworthy/early news/whispers from?)

I've always tried to have Bloomberg on in the background, but to be honest, it's not much of a help as the information is always received after things have happened. But that's probably me just being new to this, and being a bit stupid!

I think I'm just looking for someone to read this post and either reassure me that I've started in the right way, or, to offer me better ways at going about it or indeed some welcome advice. Your experiences would be gratefully received too.

Thanks for reading,
JJ

Ok, good news you're trying to get your head around money management, bad news is most of you momos get raped when the market turns bearish, as it has recently and will again.

More bad news; it takes 2 years of full time activity in this game to even begin to move from proficiency to profitability..other than that it's all good..

 

[MelSummer]

Black Swan thanks for the reply. Do you have any recommendations for newbie regarding trading strategies? Also do you have any good information sources you would recommend?

 

[Hoggums]

no stoploss = account blowup.

Because the loss will be so big you won't want to take the loss, so you'll get tempted to hold on and/or average down the position. May work a few times but it only takes one time to lose all of your previous profit and startup capital.

 

[MelSummer]

Thanks for the tip Hoggums. I always use a stop loss from what I can gather it's one of the most important things to use when spread betting. That's what I liked so much about the super trend strategy on the spread betting beginner site. It takes the headache out of the stop placement and when to move it.

 

[direkt]

Ok, good news you're trying to get your head around money management, bad news is most of you momos get raped when the market turns bearish, as it has recently and will again.

More bad news; it takes 2 years of full time activity in this game to even begin to move from proficiency to profitability..other than that it's all good..

Why is it that 'we' get 'raped' when the market turns bearish?

I've been in this for a few months part time, and just when i think I'm starting to get it, something happens that makes me question if i know anything at all....grrrr. I guess this is the rocky road i must travel on in order to build up my knowledge!

 

[roadrunner2020]

Hi guys
Is there a formula or way of workin out how many £ you place per point in any stock?
Also the same point to work out how far place your stop loss or trailing profit.

 

[MelSummer]

Hi guys
Is there a formula or way of workin out how many £ you place per point in any stock?
Also the same point to work out how far place your stop loss or trailing profit.

There is a position size calculator on the Spread Betting Beginner site. The only problem is you need to know where your stop loss is to be placed before you use it. As far as I'm aware placing your stop loss should be dictated by your strategy which is why I like the super trend strategy i mentioned in my earlier post. If you do find a calculator that calculates your stop position let me know as I would be keen to see it.

Mel.

 

[market_bull]

Why is it that 'we' get 'raped' when the market turns bearish?

I've been in this for a few months part time, and just when i think I'm starting to get it, something happens that makes me question if i know anything at all....grrrr. I guess this is the rocky road i must travel on in order to build up my knowledge!

I think that is what was trying to be said - because the market is a very unpredictable, hateful, spiteful and absolutely evil entity that you are trying to tame. Sometimes it works, sometimes it doesnt.

 

[roadrunner2020]

As you know im new
Love to know more about this super trend strategy

There is a position size calculator on the Spread Betting Beginner site. The only problem is you need to know where your stop loss is to be placed before you use it. As far as I'm aware placing your stop loss should be dictated by your strategy which is why I like the super trend strategy i mentioned in my earlier post. If you do find a calculator that calculates your stop position let me know as I would be keen to see it.

Mel.

 

[MelSummer]

As you know im new
Love to know more about this super trend strategy

The Super Trend Strategy is in the strategy section of the SBB website. I can't really help you out much more than that as I'm still pretty new to all this myself.

 

[neil]

As you know im new
Love to know more about this super trend strategy

You will see it is none to good at profit making.
Just think -if it worked we would all be using it by now.
Many aspiring traders hate this but: You will need to read many posts on this and other sites; sort the good from the bad or snake oil posters; practice again and again; and realise that the biggest obstacle to success is facing you in the mirror (The Turtles system was taught to several traders yet individual results varied).
All you need is on this site (T2W)...all you have to do is put in the hours, days, weeks,months etc.
Just get it into your head that there is no easy (purchaseable especially) route to success. Like any researcher; you have to gather and sift information, possibly experiment....on your own. By all means come back here when you have some questions borne of experience at attempting trades/market interpretation but don't just walk in the door and expect a map to riches.
Good luck.

 

[roadrunner2020]

Thankyou neil for the advice.
Im isinh omnitrader with indicators and strategies ive adapted.
Recent bought profit bands which has volume weighted average price.
As a combinatiin it works well.
Does anyone use and tech analasis program they recommend or any indicators yhey recommend?

.

You will see it is none to good at profit making.
Just think -if it worked we would all be using it by now.
Many aspiring traders hate this but: You will need to read many posts on this and other sites; sort the good from the bad or snake oil posters; practice again and again; and realise that the biggest obstacle to success is facing you in the mirror (The Turtles system was taught to several traders yet individual results varied).
All you need is on this site (T2W)...all you have to do is put in the hours, days, weeks,months etc.
Just get it into your head that there is no easy (purchaseable especially) route to success. Like any researcher; you have to gather and sift information, possibly experiment....on your own. By all means come back here when you have some questions borne of experience at attempting trades/market interpretation but don't just walk in the door and expect a map to riches.
Good luck.

 

[Pazienza]

OK, so I don't make big sums of money each day, but I'm in profit, and I think, I'm learning just by paying attention to the prices/movements/trends.

This is very, very good. Keep records of your observations though.

 

[Black Swan]

Super trend is your friend until it be...oh...that's not it

Super trend is your friend until it repaints, then repaints, then repaints some more...

 

[MelSummer]

I think this is all good advice and the super trend strategy on the SBB site does not promise instant riches. I totally agree that there is no easy solution to becoming a profitable trader and I think working on yourself is most of the battle on the path to success. I think the super trend strategy is a good place to start off. The thing is it's not just a case of buying or selling every time the super trend cross occurs, I agree this is probably an easy way to the poor house. Some judgement is required and other price patterns should also be in place before the trade is considered. To quote the SBB site:

There should also be some other price pattern in place for the trade to be considered. This can be a double, triple bottom formation, a reverse head and shoulders pattern, bouncing off support. This is not always essential for the trade but it’s preferable. (I think this area of the strategy could use further work)


How I said I think this offers a good place to start. So what strategies to others trade? At the moment I'm in my learning phase and I would love to hear more about how others have made a success of trading. Any advice/tips or strategies that others trade would be much appreciated.

You will see it is none to good at profit making.
Just think -if it worked we would all be using it by now.
Many aspiring traders hate this but: You will need to read many posts on this and other sites; sort the good from the bad or snake oil posters; practice again and again; and realise that the biggest obstacle to success is facing you in the mirror (The Turtles system was taught to several traders yet individual results varied).
All you need is on this site (T2W)...all you have to do is put in the hours, days, weeks,months etc.
Just get it into your head that there is no easy (purchaseable especially) route to success. Like any researcher; you have to gather and sift information, possibly experiment....on your own. By all means come back here when you have some questions borne of experience at attempting trades/market interpretation but don't just walk in the door and expect a map to riches.
Good luck.