Few questions and comments

[ClassicPete]

Hi all,

I'm looking to start spread betting only one instrument (DAX 30 DFB) on intraday basis. My learning curve started about 7 months ago and since then I've been trying to absorb as many books/webinars/different trading strategies as I can. Decided to start trading based on price action and S & R levels. 15 min chart for trend recognition, 5 min for patterns, down to 1-2 min chart for entering a trade. I've demo-ed the crap out of this system and it does bring, what I deem, decent profits. Still in the process of fine tuning, but feel that I can go live using this system. Anyone out there trading in a similar way?

I'm going to start with a small £300 pot trading at £3 p/p. Is this too small/big/about right to start with? I believe smaller the initial deposit the better as if I'd up my deposit and bets then my psychology changes for worse.

Prime trading hours would be 8.30am till 3pm, possibly less/more. Once I'd hit my profit target then I'd be done for the day. On the flip side, if the first 2-3 trades would go against me then I'd decrease my stake size considerably. Not keen to trade around major announcements (ECB, NFP etc.)

Will use stop losses ! I don't believe the SB companies would try and hunt my stops. Reckon I'm too small a fish for them to bother. Will use IG, any bad experience with them?

Do any of you guys that rake in regular profits get blacklisted by SB companies for being too good? At what point would they start playing games? I'd be pleased to get £50-100 a day (fingers crossed!). Is this attainable with IG? Think if I'd be pulling around £1k+ a day may I start seeing some funny stuff happening, but reckon that won't happen to me

Looking around the forum there aren't many people that make it in the SB world so would like to hear from anyone who's started with a smaller account and taken it up to what they would deem a sizeable account. Any success stories out there?

Thanks for reading, hope I don't come across as bit naive, but guess I have to find out myself by going live.

Looking forward to comments, but would appreciate constructive criticism more.

Thanks a lot !

 

[gle101]

Hi all,

I'm looking to start spread betting only one instrument (DAX 30 DFB) on intraday basis. My learning curve started about 7 months ago and since then I've been trying to absorb as many books/webinars/different trading strategies as I can. Decided to start trading based on price action and S & R levels. 15 min chart for trend recognition, 5 min for patterns, down to 1-2 min chart for entering a trade. I've demo-ed the crap out of this system and it does bring, what I deem, decent profits. Still in the process of fine tuning, but feel that I can go live using this system. Anyone out there trading in a similar way?

I'm going to start with a small £300 pot trading at £3 p/p. Is this too small/big/about right to start with? I believe smaller the initial deposit the better as if I'd up my deposit and bets then my psychology changes for worse.

Prime trading hours would be 8.30am till 3pm, possibly less/more. Once I'd hit my profit target then I'd be done for the day. On the flip side, if the first 2-3 trades would go against me then I'd decrease my stake size considerably. Not keen to trade around major announcements (ECB, NFP etc.)

Will use stop losses ! I don't believe the SB companies would try and hunt my stops. Reckon I'm too small a fish for them to bother. Will use IG, any bad experience with them?

Do any of you guys that rake in regular profits get blacklisted by SB companies for being too good? At what point would they start playing games? I'd be pleased to get £50-100 a day (fingers crossed!). Is this attainable with IG? Think if I'd be pulling around £1k+ a day may I start seeing some funny stuff happening, but reckon that won't happen to me

Looking around the forum there aren't many people that make it in the SB world so would like to hear from anyone who's started with a smaller account and taken it up to what they would deem a sizeable account. Any success stories out there?

Thanks for reading, hope I don't come across as bit naive, but guess I have to find out myself by going live.

Looking forward to comments, but would appreciate constructive criticism more.

Thanks a lot !

I liked your post, a good and sound attitude promise good for the future.

I think the most important aspect of trading is risk and money management. I would say that with your stake level it is too much in live trading (stop loss included). Let say that you have a 10 point stop loss. It means you are risking a huge 10% in only one trade in reference to your capital. I would in your case being new to live trading, not willing to risk more than 1% (stop loss included) of you total account capital. Otherwise you will burn out your account in no time. DAX is also quite volatile, so be careful not to risk more even if you think you have a good setup.

I don't see a problem with stop loss hunting but too much short term trading could be a problem in the long run trading with some SB companies. Both trading in the real market and SB we are as traders for the most part losing money. So be prepared to investing some money due to losses in order to learn live trading, which is totally different to paper trading emotionally.

 

[ffsear]

I'd also add that maybe avoid having a daily profit target. Simply trade what you see. If the entries arise then take them. If they don't, then stay out the market. Having profit targets can often put pressure on people to trade weak or invalid entries.

Best of luck!

 

[ClassicPete]

Thank you both, much appreciated.

Gle101, I normally set a 15 point SL. I don't overtrade, in fact, I cherry pick which trades I take and after execution the trade goes in my favour straight away or few seconds after. Sometimes, of course, it doesn't and goes in the opposite direction then I start to get little uncomfortable after 5 negative points. If it goes 10 points in the wrong direction then I'm cutting the trade and put it down as loss. SL @ 15 point level for me is purely a safety net for the 'unexpected & erratic sneezes' that market occasionally has and could catch me out with a bigger loss. The trade never gets that far and I normally cut it off after 10 points.
If you suggest 1% of the overall exposure (margin + 10 p/SL) is the maximum I should be prepared to risk then I'd effectively need £3,000 or there about. Am I correct? If it is then, well, I might need to look at more inexpensive options as I don't have that sort of money lying about that I'd be happy to lose. Might need to look at cheaper alternatives like CAC40.
Thanks for the eye opener on that front.

Cheers ffsear. I've scrapped the daily profit target and will simply take whatever the market will be happy to give me.

 

[gle101]

Thank you both, much appreciated.

Gle101, I normally set a 15 point SL. I don't overtrade, in fact, I cherry pick which trades I take and after execution the trade goes in my favour straight away or few seconds after. Sometimes, of course, it doesn't and goes in the opposite direction then I start to get little uncomfortable after 5 negative points. If it goes 10 points in the wrong direction then I'm cutting the trade and put it down as loss. SL @ 15 point level for me is purely a safety net for the 'unexpected & erratic sneezes' that market occasionally has and could catch me out with a bigger loss. The trade never gets that far and I normally cut it off after 10 points.
If you suggest 1% of the overall exposure (margin + 10 p/SL) is the maximum I should be prepared to risk then I'd effectively need £3,000 or there about. Am I correct? If it is then, well, I might need to look at more inexpensive options as I don't have that sort of money lying about that I'd be happy to lose. Might need to look at cheaper alternatives like CAC40.
Thanks for the eye opener on that front.

Cheers ffsear. I've scrapped the daily profit target and will simply take whatever the market will be happy to give me.

Yes correctly, you need £3000 and even more if you set the stop at 15 points. In real trading you might not be able to execute as well. I suggest you try to find a lower entry level, because this kind of risk taking will probably not end well.

 

[A Dashing Blade]

Would suggest you look at the Stoxx index rather than the Dax, far more liquid.

 

[Spread-Bettor]

Would suggest you look at the Stoxx index rather than the Dax, far more liquid.

You're right about choosing Stoxx Index for liquidity reasons but the thing I like about the DAX apart fro the liquidity is that it is only traded electronically (no pit trading!). Therefore, all traders have the same information and all have the same equal opportunities in trading

 

[A Dashing Blade]

Er . . . . nor is the Stoxx!

(don't remember it ever been pit-traded tbh, pretty sure same for the Dax)