chindl said:
You're right, Chris. It went up to 11213 and closed at a point below.
What bugs me is I can't trade all the swings in a day and as thus may have missed out the first class trade set ups.
Thanks a lot for the chart. And I think we can bet that England will win. Don't want to bet on the score though
Best,
Hung
chindl
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Unlike the goalkeeper, bless him, no WC for him.
ADX hey, well, it's a full subject in itself. And, it's England, I'll try and do something tomorrow morning. What I will say, in short, it comes in two parts usually on a default setting on 14. Directional Movement and ADX. The DMI's oscillate whilst the ADX is smoother. You'll find an explanation in PRT. As the ADX rises above the 20 through to 30 and on it shows the trend is forming and volatility is increasing. The DMI shows the way the trend is forming, ie. positive DMI above negative DMI = bullish and vice versa...
Boy Belarus are dirty sods, we'll have no subs fit for the WC at this rate!!!
ADX hey, well, it's a full subject in itself. And, it's England, I'll try and do something tomorrow morning. What I will say, in short, it comes in two parts usually on a default setting on 14. Directional Movement and ADX. The DMI's oscillate whilst the ADX is smoother. You'll find an explanation in PRT. As the ADX rises above the 20 through to 30 and on it shows the trend is forming and volatility is increasing. The DMI shows the way the trend is forming, ie. positive DMI above negative DMI = bullish and vice versa...
Boy Belarus are dirty sods, we'll have no subs fit for the WC at this rate!!!
As I am still waiting for a taxi to go home from work, I am going to reflect a bit on my venture into spread betting so far. The 90 days or so of it.
First of all, trading on anything less than £5000 is painfully tough. The one per cent rule restricts my choice of what to trade and as thus may not be able to trade the best possible products.
Another thing which is as important (if not more than starting capital) is being a disciplined and non-emotional trader. Again, a larger capital would help in this respect too. If a trader has just £1000-2000 available for trading, chances are you'll end up risking more than one per cent and be more worried about the trade. The result is profit may not be let to run making the risk/reward ratio pathetic.
Having a pause after a string of winning or losing trades is advisable. Overconfidence and 'depression' are not good for trading.
And I've told myself many times to only trade when I am in a good position to do so, i.e when I am free from any other worries or engagements.
My plan is asking Finspreads to let me trade smaller stakes so that the one per cent rule can be applied. At the moment, I tend to risk between 2-5 per cent and it's not healthy.
I like one of the phrases that I've come across in one of the trading books by Alan Farley - 'Let the experience awakens knowledge.' I know I havent' got enough both and should slow down a bit with trading.
... Well, the car is here. So more on my journey later.
First of all, trading on anything less than £5000 is painfully tough. The one per cent rule restricts my choice of what to trade and as thus may not be able to trade the best possible products.
Another thing which is as important (if not more than starting capital) is being a disciplined and non-emotional trader. Again, a larger capital would help in this respect too. If a trader has just £1000-2000 available for trading, chances are you'll end up risking more than one per cent and be more worried about the trade. The result is profit may not be let to run making the risk/reward ratio pathetic.
Having a pause after a string of winning or losing trades is advisable. Overconfidence and 'depression' are not good for trading.
And I've told myself many times to only trade when I am in a good position to do so, i.e when I am free from any other worries or engagements.
My plan is asking Finspreads to let me trade smaller stakes so that the one per cent rule can be applied. At the moment, I tend to risk between 2-5 per cent and it's not healthy.
I like one of the phrases that I've come across in one of the trading books by Alan Farley - 'Let the experience awakens knowledge.' I know I havent' got enough both and should slow down a bit with trading.
... Well, the car is here. So more on my journey later.
Vaco
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hung,
If fins wont let you reduce your stakes then it may be an idea to move over to cfds, I'm with cmc but i trade cfds rather then spreadbet this allows me to trade as little as 1 contract if i so choose as an example that means i can trade the dow at 1$ a point if i so choose.
As for the tax benfits of spread betting, lets worry about the tax were gona pay once were making enough to put us over the capital gains tax allowence which on a very small account in your first year of trading is unlikely.
Good luck
If fins wont let you reduce your stakes then it may be an idea to move over to cfds, I'm with cmc but i trade cfds rather then spreadbet this allows me to trade as little as 1 contract if i so choose as an example that means i can trade the dow at 1$ a point if i so choose.
As for the tax benfits of spread betting, lets worry about the tax were gona pay once were making enough to put us over the capital gains tax allowence which on a very small account in your first year of trading is unlikely.
Good luck
You were up so early mate. Thanks for the suggestion.
I still have a CFD account with CMC so it'll be handy if I decide to switch to CFD. But I have never used the account since I openned it three or four years ago and as thus has no experience with CFD.
The thing is I actually want to trade pennies not pounds and don't want to risk anything more than 10-20 pounds per trade. I doubt that this is possible when trading CFD with CMC?
Good trading,
Hung
I still have a CFD account with CMC so it'll be handy if I decide to switch to CFD. But I have never used the account since I openned it three or four years ago and as thus has no experience with CFD.
The thing is I actually want to trade pennies not pounds and don't want to risk anything more than 10-20 pounds per trade. I doubt that this is possible when trading CFD with CMC?
Good trading,
Hung
hungvir said:
Did you accuse me of having deep pockets? :cheesy: I last put money into my account in 2002, so am not doing too badly, although the last couple of months have been choppy. I don't think that it is a good idea to move £5000 all at once, but to have it earmarked, yes, so that you can move some of it over when necessary. When you can trade at the press of a button you have to complete self control with that amount of money on tap. I'm not sure that all spreadbetters have that and it is better to have a brake to slow one down at some stage.
Split
Did you take my money from the DOW trade yesterday then
You've done very well, Split. I last transfered money into my Fins account two weeks ago So far losses still stand at hundreds rather than thousands though.
And I agree that starting out with £5000 is not a good idea as you may end up losing it in matters of days or weeks at best. But after about three months, it's good if stakes can be increased to a level that you're comfortable with. I would advise any beginner to trade pennies for the first few months then gradually increase stake sizes.
If I remember correctly, the spreadbetter who kept a diary at Fins started out with about £5000 and lost most of it. And she quitted the game now - http://www.finspreads.com/IFXWeb/Finspreads/Code/en/Main/index.aspx?MainMenu_Selected=Chapter19.
Cheers,
Hung
You've done very well, Split. I last transfered money into my Fins account two weeks ago
So far losses still stand at hundreds rather than thousands though.And I agree that starting out with £5000 is not a good idea as you may end up losing it in matters of days or weeks at best. But after about three months, it's good if stakes can be increased to a level that you're comfortable with. I would advise any beginner to trade pennies for the first few months then gradually increase stake sizes.
If I remember correctly, the spreadbetter who kept a diary at Fins started out with about £5000 and lost most of it. And she quitted the game now - http://www.finspreads.com/IFXWeb/Finspreads/Code/en/Main/index.aspx?MainMenu_Selected=Chapter19.
Cheers,
Hung
barjon
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hungvir said:
hung
not so much your choice of what to trade, but your choice of position size
eg: if your notional account is £5000 (as split says, you don't actually have to put it in even though you ought to have it earmarked and available) then you'd be prepared to risk £50. looking at a stoploss of 50 points that'd give you a position size of £1pp, a stoploss of 5 and it's £10pp and so-on.
may seem obvious but it's oft forgot.
good trading
jon
That's right, Jon. The only thing is what I have earmarked for spreadbetting is far less than £5000 and I am not willing to 'lose' any more than that.
I've been trying to be clever with money so that I can put aside a bit more for trading at a later date - things like taking advantage of 0% credit card balance transfer and put the money into an online saving account, switching utility providers using uswitch.com, switching mortgages every so often... But it is and will be 'a long and winding road'.
Later,
Hung
I've been trying to be clever with money so that I can put aside a bit more for trading at a later date - things like taking advantage of 0% credit card balance transfer and put the money into an online saving account, switching utility providers using uswitch.com, switching mortgages every so often... But it is and will be 'a long and winding road'.
Later,
Hung
Chorlton
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hungvir said:Did you take my money from the DOW trade yesterday then
You've done very well, Split. I last transfered money into my Fins account two weeks ago
And I agree that starting out with £5000 is not a good idea as you may end up losing it in matters of days or weeks at best. But after about three months, it's good if stakes can be increased to a level that you're comfortable with. I would advise any beginner to trade pennies for the first few months then gradually increase stake sizes.
If I remember correctly, the spreadbetter who kept a diary at Fins started out with about £5000 and lost most of it. And she quitted the game now - http://www.finspreads.com/IFXWeb/Finspreads/Code/en/Main/index.aspx?MainMenu_Selected=Chapter19.
Cheers,
Hung
Hung,
We seem to have similar experiences. I transferred £2.5k into my Fins account at the end of last year and by the start of May I had increased it to just under £3.5k, which gave me approx £1k profit for 5 months trading. Not a great increase in money terms but as a percentage its 40%.
This was achieved by trading stocks (each with a share price of up to 500-600p), and taking out multiple positions each at the minimum amount for Finspreads (£3 per pip)
However, as I grew more confidently I began to pay less attention to individual share price and instead concentrated of chart set-ups. As a result, just prior to the recent slump in the FTSE, I had over 15 multiple positions open at (£3 / pip) but on stocks worth anything up to 2400p. On one in particular I had 3 open positions (total £9 / pip) on a stock worth 2700p.
I then made the costly mistake of "forgetting" to include my stops (as I placed the trades in a hurry) and in the example above lost over 100 pips before I could close my positions!!!!!
As a write today, I am now seriously down and have even managed to eat into my original capital as well. I'm confident that I can recoup the money BUT it will definately take a lot more time to accumulate it than lose it!!!
The moral of this story is never forget about position sizing or stop losses. I would say that most people can produce a system that makes money. However, its only those who also have good money management that get to keep it!!!!
Here endeth the lesson..........
Chorlton
chindl
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hungvir said:
Hung - back to the ADX - try this. http://www.stockcharts.com/education/IndicatorAnalysis/indic_ADX.html
I use ADX to measure volatility on a break of the 40 1.2 in either direction. If the ADX is coming off an high on the hourly then it will usually retrace back into the bands. If, however it is rising through 20 and onto 30 with the Directional Movement supporting then it will generally continue with it's trend for a good few bars. I use 30 and the 15 min charts to pin point more accurately when to get in so as not to go in too oversold areas. Usually a slow bespoke stoch or a bespoke MACD will give me a clue. I will then target based on S&R and if we have no S&R then I'll look for a top on the ADX or use divergences on RSI and the slow line on the MACD..
Hope this gives some insight into one of the practices I employ in identifying a set up to play.
Have a profitable day.
Chris
Thanks much for the explaination, Chris! I appreciate your willingness to share your strategy. And don't worry about impulsiveness. If you call your posting impulsive then what word would describe mine
I still plan to trade the DOW for the last two hours so I'll talk to you later if you trade it today as well.
Cheers,
Hung
I still plan to trade the DOW for the last two hours so I'll talk to you later if you trade it today as well.
Cheers,
Hung
Chorlton said:hungvir said:Did you take my money from the DOW trade yesterday then
You've done very well, Split. I last transfered money into my Fins account two weeks ago
And I agree that starting out with £5000 is not a good idea as you may end up losing it in matters of days or weeks at best. But after about three months, it's good if stakes can be increased to a level that you're comfortable with. I would advise any beginner to trade pennies for the first few months then gradually increase stake sizes.
If I remember correctly, the spreadbetter who kept a diary at Fins started out with about £5000 and lost most of it. And she quitted the game now - http://www.finspreads.com/IFXWeb/Finspreads/Code/en/Main/index.aspx?MainMenu_Selected=Chapter19.
Cheers,
Hung
Hung,
We seem to have similar experiences. I transferred £2.5k into my Fins account at the end of last year and by the start of May I had increased it to just under £3.5k, which gave me approx £1k profit for 5 months trading. Not a great increase in money terms but as a percentage its 40%.
This was achieved by trading stocks (each with a share price of up to 500-600p), and taking out multiple positions each at the minimum amount for Finspreads (£3 per pip)
However, as I grew more confidently I began to pay less attention to individual share price and instead concentrated of chart set-ups. As a result, just prior to the recent slump in the FTSE, I had over 15 multiple positions open at (£3 / pip) but on stocks worth anything up to 2400p. On one in particular I had 3 open positions (total £9 / pip) on a stock worth 2700p.
I then made the costly mistake of "forgetting" to include my stops (as I placed the trades in a hurry) and in the example above lost over 100 pips before I could close my positions!!!!!
As a write today, I am now seriously down and have even managed to eat into my original capital as well. I'm confident that I can recoup the money BUT it will definately take a lot more time to accumulate it than lose it!!!
The moral of this story is never forget about position sizing or stop losses. I would say that most people can produce a system that makes money. However, its only those who also have good money management that get to keep it!!!!
Here endeth the lesson..........
Chorlton
You're very brave to share it with us, mate! I haven't heard of many stories about spreadbetters losing money here though statistics show that up to 80-90 per cent of us would lose out to the bookies. That's why we keep seeing new bookies coming in and use all sorts of promotions to lure new customers.
I believe as long as we can strictly follow the one per cent of capital at risk on any one position plus good diversification then we'll be fine. Provided we let the profit run and punish bad trades by cutting losses quick.
Talk to you later,
Hung
Chorlton
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hungvir said:
I have no problem with sharing the "ups" or "downs" of my trading. As I said in my post I was making consistent gains up to recently. These gains were only small amounts but that was because I was a newbie to SBetting and didn't want to risk too much too quickly.
However, within only 5 mths I had done just that and hence why I am now in this situation.
I totally agree with your comments and for the record I'm actually glad in a way that I had learnt this lesson so early on in my Sbetting career.
btw: You'll be glad to know that I have begun to reduce this loss thanks to some recent new profitable trades ..... oh... and these ones have a tight stop included !!!
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