Trading Ftse £1 Per Pip, With 3000 Pip Stoploss!! :)

[gooseman]

spanish-do you understand how this position will be margined by the spreadbetting company? simple question. you will undoubtedly tie up capital at some point by servicing their margin calls at some point in this strategy. for example you buy FTSE right ehre right now at 6089 with your stop set at 0001. the FTSE from here falls to 5800 and reamins there for a period of 8 months....the SB company will ask you to deposit cash (which won't earn any interest) to cover their potential loss on you. they are not credit lenders meaning they won't lend you money. you have two options: service the margin or they will close the position and take your cash/through the courts to get your cash.

if by this strategy you want to invest (and not 'trade' per se) in the stock market, a more viable option would be to go into the bank and ask to invest in a basket of global indices.

there are plenty of people on this board who do know what they are talking about nad have been trading either DMA or via SB'ers. i have always found listening to people is one of the best ways to gain an insight into the market.....i suggest you do the same.

personally i think your strategy is massively flawed and you are setting yourself up for a fall. as someone suggested on here perhaps looking at vanilla options may be more sensible. given that despite plenty of people on here have given reasonable responses to your strategy and that you continue not to acknowledge them leads me to believe that you don't fully understand the pro's and con's of your strategy.

a famous quote you might like to read over and understand: 'the market can remain volatile longer than you can remain solvent'.

 

[pedro01]

Another thing to consider - let's say you take a contract that expires 3 months away. At the expiry the market is down 500 points.

When you roll the contract, the SB company will deduct 500 pounds from your trading account.

Now you are looking for a 1000 point gain to make your profit target.

To be honest, if I could predict a 1000 point gain, I'd want to make a lot more than 500 quid out of it.

 

[Splitlink]

spanish-do you understand how this position will be margined by the spreadbetting company? simple question. you will undoubtedly tie up capital at some point by servicing their margin calls at some point in this strategy. for example you buy FTSE right ehre right now at 6089 with your stop set at 0001. the FTSE from here falls to 5800 and reamins there for a period of 8 months....the SB company will ask you to deposit cash (which won't earn any interest) to cover their potential loss on you. they are not credit lenders meaning they won't lend you money. you have two options: service the margin or they will close the position and take your cash/through the courts to get your cash.

if by this strategy you want to invest (and not 'trade' per se) in the stock market, a more viable option would be to go into the bank and ask to invest in a basket of global indices.

there are plenty of people on this board who do know what they are talking about nad have been trading either DMA or via SB'ers. i have always found listening to people is one of the best ways to gain an insight into the market.....i suggest you do the same.

personally i think your strategy is massively flawed and you are setting yourself up for a fall. as someone suggested on here perhaps looking at vanilla options may be more sensible. given that despite plenty of people on here have given reasonable responses to your strategy and that you continue not to acknowledge them leads me to believe that you don't fully understand the pro's and con's of your strategy.

a famous quote you might like to read over and understand: 'the market can remain volatile longer than you can remain solvent'.

Of course, you are right. Why bother to trade under those circumstances?

Another point to look at.

When was the last time the Footsie dropped 3000 points? So, you put a 3000 point stop loss on your trade thinkng that, sooner or later, it will go up. The market goes down 1500 points . Then it goes to -500 points Etc, etc, etc.

While this is going on, more active traders are trading happily away, but what are you doing? You are still stuck there wasting your time and money.

This is not a new idea. It's been looked at and binned a long time ago. You are in the market to trade. If you don't want that, study the fundamentals, get a portfolio together and "long term" that way. There's nothing dishonourable about it, I've done it all my investing life but I come here to trade shares, etc, which is a short time process.

 

[advfntrader]

DO NOT - under ANY circumstance trade without a stop, or a very wide one. STOP...LOSS. thats what its there for to STOP the loss.

read my post, £10k wipeout. it started on the FTSE for me then moved onto OIL which was far to volatile and needed far too much margin. I got margin called and added more margin to try to ride it out rather than closing. then I got margin called again. I have ended up £10k down in 3 months.

please listen to me. DO NOT trade on margin, ALWAYS use tight stop loss. otherwise you are asking for trouble. I ignored advice of people and though I knew better, I didn't. the markets have cleaned me out and almost runing my marriage. this IS NOT a game, you can get into a lot of trouble if you over leverage yourself. a LOT of trouble

 

[Hoggums]

So If the the September futures are 40 points above cash, why not short Sept futures and go long Ftse cash ?

Ian

Because you will pay even more interest on your FTSE cash position than you will gain from shorting the future.

CS charges 7.5% on a daily position, a future is charged at approx 5.25% (whatever the interest rate is at the moment). IG are a bit vague but I believe they re-open the trade and make you pay approx 60% of the spread again on the rollover.

 

[Lee Shepherd]

Please read and absorb

Hi Spanish,

Firstly I dont condone the abuse that you have received and I feel that personally people should not say anything at all rather than just plain insult you.

BUT:

You must understand that no one would reply whatsoever, by the very nature of your words of knowledge and fantastic ideas ect you are kicking everyone on here in the balls.

There are many traders on this very great chat forum that have offered some sound advice and still continue to do so FOR free, but you seem not to listen. This is extremely frustrating to say the least.

The interest you keep mentioning you dont have to pay has been mentioned to you in the way of the futures being more money than the underlying.(listen to Hoggums)

Now, lets assume you got in where you said you did (around 6080), now take a look back at the year 2000 and follow the next 18 months (one example out of many), it's a bear market that would have taken you many positions (open/close/re-open) and a lot of margin cover + interest and you would have still lost money.

The market traded over 6800 before trading to below 3300 (over 50%) over the space of 2 and a half years. Now calculate that loss and tell me we couldn't be in the same position. (as people we are fickle and forget so easily - many a traders downfall)

From August 2000 to this very day you still WOULD NOT have recovered your money let alone made anything at all, this does not include anything such as inflation, interest, cost of carry, cost of closing/opening and re-opening of positions and does not include loss of interest, cost of running platform(electric/computer/internet) and ultimately your time.

Now forward test in time - this of course we can only predict but suffice to say that if we are in this position now and the market remains down by several percent then it stands to reason that you will lose money - this is a simple but very true concept.

I wont work out for you the possibilities as this is your job.

I feel I, like many have been extremely generous with our time for you. As for answering your questions in an open forum, this advice is as much as I'm willing to provide to you due to the lack of contempt for other traders and there well experienced knowledge.

Take a look at the strategy (and I use the term lightly) then YOU post YOUR conclusions to risk and loss and not just looking at posting the potential gain in the blind hope of it coming true.

In detail your credit cards or any other debts will be in excess of +15%, inflation is 2-3% and the cost of carry will be several percent also, if the market does not rise past you entry level plus more so then (hopefully) you can easily see that this simply does not work over any period of time. You may be lucky this time round(cyclical) but that is all it will be.

YOU do the tests, YOU do the maths, YOU do the working out and finally YOU and only YOU take the risk in its entirety.

Good luck.

 

[normbeef]

here it is again... please please look..

Again... visually A chart .... just take a long hard look...

 

[shadowninja]

YouTube - Another one bites the dust Queen

A little bird tells me he's gone live with this.

 

[gooseman]

if he does this ona daily rolling basis-he'll soon have his bank/credit card company stop him out...

 

[normbeef]

**snip**.... it took me ages to faf about to get that chart on here for him... lol ... well Freddy I reckon you might be right... Queen Rock man... ;-]

 

[Hoggums]

A little bird tells me he's gone live with this.

Yep - just as the indices are about to tank again....

 

[normbeef]

knock knock.... who's there... its the **snip** baliffs now open the door ... lol...

 

[shadowninja]

Spanish, update your blog and we can read how things are going.

 

[CHRISTO9HER]

After seeing how Spanish was posting a while back, I really thought that he was starting to learn a little bit. There was something about the way that he posted that made me want him to succeed, I think it was the (apparant) raw enthusiasm he had for the markets. It is sad to see that he was not,in fact, learning anything at all.

 

[spanish89]

I tell you what ladies, you can all laugh and say whatever you wnat about me or my stratergy on this site... :cheesy:

You can ridcule it, abuse it, completely tear it to shreaads verbally if you really feel the urge to!!


Cos at the end of the day i now realise that most of you are complete and utter brainless idiots!!


We all seem to think we are so smug just because we have got to a high membership status on here, and so because you have written alot on this site you must be a complete expert you all seem to think!!


But if you really are so great and sucessful why arent you a millionaire living on a tropical island somewhere,
instead of spending all you time on some website trying to criticise everyone else just so you feel big??



You all laughed at my plan lastnight, well i just sat back and made £60 easy cash today by click a few buttons for a few seconds in the morning!!


You can say tht £60 isnt enough, or taht 1day i will lose it all, i relaly dont care what you think though cos the majority of you are just complete losers and are just all mouth.

 

[prop]

we done spanish, i take my hat off to you, you have found a system that you designed yourself and that makes money, this is a step forward indeed, now i would consider increasing your position sizing to make the maximum you can

well done again

 

[pedro01]

Spanish

How about letting us know the following :

date trade entered
price you got in at
amount staked (we presume 1 quid/point)
actual stop loss
expiry date of contract (or is it rolling daily)

 

[gooseman]

spanish-yet again you amaze me. on the previous page you are asked direct questions about margining and how you are trading this contract (sep dates/rolling etc) by people who are genuinely interested in how you will be running this strategy. your response is just plain ignorant and arrogant. honestly i don't care whether you make a million or end up penniless. if i had to put money on the result i know where my money would be and it's a fairly high delta in my opinion.

you've been trading for about half an hour mate and if you think you're good enough not to take advice then best of luck with the debt collectors.

 

[gamma]

Whenever Spanish starts a thread it brings a whole elleptical array of responses ranging from Anger,compassion,ridicule,advice to frustration and resignation.
They tend to start off arguments and debates between members and himself and members
all very amusing(I smile as I post this)
If nothing else then spanish keeps us all bemused while whiling away the long hours of solitude and boredom that is part and parcel of trading.

Long may Spanish live and keep us amused!

 

[keano]

Amen, Gamma. I think he's funny!