Hi all 
I had only learned about spread betting recently, and thought it will be a good entry point into the world of financial investment, as SB only requires a small margins. So I join CMC Market and start to reading few books on trading. I recommend "The financial spread betting handbook" by Malcolm Pryor to anyone, which is quite good for starters as it is very informative and teach you step by step. I start by using TA with UK shares, especially those with small margin requirement with CMC market, as I can only spend limited money on SB. (I am only a student studying master degree atm)
In the first week, I was doing OK with a return of 7%, and thought everything went quite well. I got a bit of luck few days ago with Aussie index , and manage to boost the return to 30%, but now think of it, it was pure gambling, not investing.
Correct me if I am wrong, I thought gambling as betting on share price based on purely luck and only small probability involved, and Investing shares as activity to predict stock price by using primarily technical analysis, and not much depend on luck.
Anyway, I was too optimistic with me current status, and consciously ignore the high risk and complexity of indexs, start to bet randomly on volatile indices such as US30, Aussie200. I did managed to squeeze some money out of it, and it increase my ignorance and appetite, so I gamble on Hang Seng.
I lost 60% of all my capital in my account just in 3 minutes, I managed to pull out in time to stop the loss further, I didn't put any stop loss/limit, what a mistakes to make.
Well, I had learned a few lessons...mostly basic stuff.
1. Never bet with Index till you had learned all the complex factors behind moving of indices. Even it really looks like easy money to make (As the recent huge movement in FTSE100 due to Bear Stern or announcement of UK Budget and so on.)
2. Always have an Entry/Exit and Stop Loss before any movement to limit exposure. Even if you are confident about your choices.
3. Never risk more than 10% of your capital.
4. Don't get Emotional at anyt moment in time, when you feel the particular instrument is hot, or awfully depressed after the market turn against you, don't let emotion hit you as it hit me hard after losing 60% in 3 minutes.
I live in Edinburgh, and would like to learn more about trading, anyone interested in meeting up, please let me know. :cheesy:
Cheers
Lucas
I had only learned about spread betting recently, and thought it will be a good entry point into the world of financial investment, as SB only requires a small margins. So I join CMC Market and start to reading few books on trading. I recommend "The financial spread betting handbook" by Malcolm Pryor to anyone, which is quite good for starters as it is very informative and teach you step by step. I start by using TA with UK shares, especially those with small margin requirement with CMC market, as I can only spend limited money on SB. (I am only a student studying master degree atm)
In the first week, I was doing OK with a return of 7%, and thought everything went quite well. I got a bit of luck few days ago with Aussie index , and manage to boost the return to 30%, but now think of it, it was pure gambling, not investing.
Correct me if I am wrong, I thought gambling as betting on share price based on purely luck and only small probability involved, and Investing shares as activity to predict stock price by using primarily technical analysis, and not much depend on luck.
Anyway, I was too optimistic with me current status, and consciously ignore the high risk and complexity of indexs, start to bet randomly on volatile indices such as US30, Aussie200. I did managed to squeeze some money out of it, and it increase my ignorance and appetite, so I gamble on Hang Seng.
I lost 60% of all my capital in my account just in 3 minutes, I managed to pull out in time to stop the loss further, I didn't put any stop loss/limit, what a mistakes to make.
Well, I had learned a few lessons...mostly basic stuff.
1. Never bet with Index till you had learned all the complex factors behind moving of indices. Even it really looks like easy money to make (As the recent huge movement in FTSE100 due to Bear Stern or announcement of UK Budget and so on.)
2. Always have an Entry/Exit and Stop Loss before any movement to limit exposure. Even if you are confident about your choices.
3. Never risk more than 10% of your capital.
4. Don't get Emotional at anyt moment in time, when you feel the particular instrument is hot, or awfully depressed after the market turn against you, don't let emotion hit you as it hit me hard after losing 60% in 3 minutes.
I live in Edinburgh, and would like to learn more about trading, anyone interested in meeting up, please let me know. :cheesy:
Cheers
Lucas
