Hello to anyone that reads this blog.
I have been silly and stupid with my trading over the last few months and I have nearly eliminated all my funds. Why has this happened? Well, it’s because I have been an idiot and not followed any of my trading rules or my strategies and I have been over trading. I have decided to stop my random trading and return to the only way I almost made money spread betting and that was using trend spotting, support and resistance and momentum divergence strategies.
I currently have 14 open positions accross 4 different spread betting accounts. Some of these positions have strategies behind them and some do not. There are two strategies that I have used one is using momentum divergence and the other is buying on support lines. All the positions are Long positions which in the current market climate could prove to be a mistake.
My aim over the coming weeks is to trade alot less than I have been and post all my new orders on this blog. I will do a weekly analysis of the overall market (FTSE all share) and will also look for new potential trades at the weekend. My goal is to never open my trading accounts during (UK) trading hours as I will be inclined to place random trades based on emotions not sound trading strategies.
My current valuation stands at around £300 over the 4 accounts with some worse than others. This is way down from the £1395 I started with back in Feb 2009 but at least I still have some left to speculate with. The goal is to make as much as possible and keep making it. I usually like to manage risk at 1% of total funds but I think only risking £3 per trade will be difficult to achieve. I will alow myself up to 3% so £9 per trade however this risk per trade will not increase untill I have A valuation of over £900 then I will only risk 1% per trade.
One thing that I have never been good at is coming up with a profit target for each trade. I like to try and aim for 3:1 reward to risk but I never know how to try and calculate this goal based on looking at the charts. Anyway I will be posting more often from now on. I would like to try and make this blog more interactive and would love to hear anyones thoughts, comments or any strategies that they use and have found work for them.
Hopefully I will get to a winning way and reach my 5 year target of trading for a living.
Until next time.
May the markets be with you.