If you read my blog entry last week ‘Spread Betting: Buying Dips‘ then you will already know that I attempted a pyramid into my Amlin position. Suffice to say that the position closed out on Friday as my stop level at 333 was hit. On reflection I definitely attempted to pyramided too soon, hence the title for today ‘Spread Betting: Buying Dips too soon’. I could have waited longer before attempting the pyramid but ultimately my stop would have been hit and I would have only saved myself a few pounds. Still a few pounds is better in my pocket than someone elses. I guess I was too eager to add to this position so that’s certainly something that I need to work on.
And then there were three.
I still have three positions open at the moment and I will be looking for new positions again very shortly. It’s been a funny journey over the past few months for me. I’ve been reading more trading books again and I don’t know if it’s been a good or a bad thing. It’s good in that I have learnt some new things and brushed up on others but I don’t know if it has ended up confusing me again or not. For instance in come into my trading room there is analysis of moving averages, force index, elder ray and Moving Average Convergence Divergence (MACD) which is all great but now I’m thinking I should trade using these. The problem as always is knowing what to do for the best. If I knew that then I’d be a rich man. However I cannot know that, no one can, so I have to do what I think is right. At the moment I think an assessment of my current trading strategy is in order before deciding to add new ones. It’s actually a good thing to do an annual review once a year. I mean we have them at work, we service our car once a year(or at least we should) so why not do review of my trading strategy and it’s performance. It may be the case that I don’t need to reassess, or it could be that I need to make a few tweaks and it will be fine or it could be that the strategy is useless and it’s time to move on. The only way I’ll find out is to review my trades. Now I know why I log them all down.
Until next time,
“May the markets be with you!”
The Spread Betting Beginner