Making £8k a month on the FTSE

[seguna]

PoisonIvyO

You need to start at the 'beginning' - like we all do. Your question there suggests you need to do quite a bit of reading - all of which is available to you free. You can start here at Trade2Win, reading articles and 'How to's' and explanations of what trading is all about.

Only then will you start to appreciate where 'methods', trading systems, software systems, seminars, mentors etc fit into that profile. There's a lot you need to know but equally a lot you really don't need to know. The best way to sort through it all is to start...learning...

But then you'll never stop doing that anyway. Hope that helps.

 

[poisonivy0]

emailed learnmoney.co.uk on what a trading system is.

They replied:
Thanks for your email.

Yes, you're sort of there with your thinking below. A spread betting system, a stockmarket system, a currency system etc is really nothing more than a set of rules designed to take the emotion out of buying/selling plus return a profit of course.

An example of a simple system for the stockmarket would be to buy if the price goes higher than the past 20 days highest point. This would be referred to as a momentum system because it buys strength on the assumption that what is strong has a habit of getting stronger. So if the last 20 days high on the FTSE was 4705 the system trader would buy if the market went above that point and do nothing if it didn't.

But then systems can get very very complex using all sorts of hardcore maths, squaring this, cubing that, buying German bonds and then selling Japanese bonds short (will make money if the bonds decline in value). It can all go too far if you ask me.

Why is removing the emotion so important? Because fear and greed can make us do stupid things but then the system trader still has to take the generated signals. For example, the stockmarkets are crashing, everyone says that if you buy stocks you're mad and then your computer says 'buy stocks'. Some people will often be scared to take that signal but then this defeats the object of trading systematically. The important thing therefore is to take every signal and if you don't stop trading the system.

So the million £ question is do they work? Yes and no, they blow hot and cold like most things but a good system is normally quiet simple but has to be modified along with the markets. For example, the stockmarket is a very different beast to what it was 2-3 years ago so a system that worked then would have probably have to have been tweaked as stock prices have got incredibly more volatile.

Hope this helps and please fell free to email me if you've got any more questions.

 

[vmahavir]

Dow Trading System

Please visit my blog Dow Jones Trading System
- Mahaveer Vibhute

 

[yacarob1]

What is a Spread betting trading system im totally confused on what it actually is.

It is a procedure whereby a spread betting company systematically relieves you of your money.

Sounds to me like you had best stick to gardening or some other less risky pursuit.

 

[kegi]

leaving aside my view on the rights or wrongs of this thread i for one found a lot of it informing to me as a newcomer. What is beyond the pale is to end it with the comment you have just made to a newcomer like me who asked in my view for a straight forward answer to his ?not the sarcastic one you threw out at him or her... shame on you oh legendary member who for all I know could be a fake....And why are there so many on this site s/betting if thats the case
can post 284 be made a sticky so all newcomers are rest assured of a good welcome


kegi and what do I know living in yorkshire......

 

[yacarob1]

leaving aside my view on the rights or wrongs of this thread i for one found a lot of it informing to me as a newcomer. What is beyond the pale is to end it with the comment you have just made to a newcomer like me who asked in my view for a straight forward answer to his ?not the sarcastic one you threw out at him or her... shame on you oh legendary member who for all I know could be a fake....And why are there so many on this site s/betting if thats the case
can post 284 be made a sticky so all newcomers are rest assured of a good welcome


kegi and what do I know living in yorkshire......

Get a life and a sense of humour Mr Titchmarsh.

Your question was sensationally unintelligent and deserved the response it got.

Anyway, it wasn't even your question unless you are operating with multiple nicks.

Click on the link below for a pursuit probably more suited to thee.

BBC - Gardening

 

[yacarob1]

can post 284 be made a sticky so all newcomers are rest assured of a good welcome

I would consider that an honour if it could be done.

Such recognition would make me a proud man indeed.

 

[kegi]

post 286
Get a life and a sense of humour Mr Titchmarsh. ]Humour is not required to dig up worms

Your question was sensationally unintelligent and deserved the response it got.[I take it that was meant for poisonivy then .shows your true colours]

Anyway, it wasn't even your question unless you are operating with multiple nicks.[true is was my reply to your answer to the ? from poisonivy]totally unwarranted

Click on the link below for a pursuit probably more suited to thee.[seems like we should all take up gardening except of course the great one himself]

BBC - Gardening

post 287

says it all ...not worthy of a reply ..

off to dig up more worms

kegi

 

[yacarob1]

off to dig up more worms

kegi

It's good that you have taken my advice.

Since you are now digging up worms, I would suggest that fishing might be a good pastime to supplement the gardening.