No new Spread bets for me today. Again there were a few opportunities but none that match my trading and risk criteria. My Amlin position is ticking over nicely, although it’s reflected the FTSE 100 movement today, up a bit, down a bit and then up a bit again. Maybe I’ll be looking to tighten my stop loss again soon.
If you read yesterday you will know that I am making a start on getting my trading plan in place. I thought that some people might like to have their say or share ideas about what should be included in a trading plan so I have started the topic How to develop a trading plan over on the spread betting forum. Feel free to all get involved.
I aim to spend a bit of time each day on it so there should be plenty of time to comment on it as we go along. Hopefully we will all find it a useful exercise. I am hoping that we can develop a template that others can download and use to write their own trading plan. I want to get as many peoples input as possible as others will think of things that I don’t and Visa Versa. So what are you waiting for? Get involved and share your thoughts.
Part one is a broad over view of what is required to develop a trading plan. The list I have complied is by no means complete and feel free to add whatever you feel is necessary.
On a completely separate note I was watching “Million Dollar Traders” again the other day. It was first shown on BBC2 back in early 2009 (I think) right about the time when I started to get into spread betting myself. It got me thinking about my own trading and the fact that they were essentially running a hedge fund. I was thinking that for every long position I take out I should look for a short position in the same sector. This way I should essentially be “hedging my bets” so to speak i.e. if one position goes down, in theory the other should rise, therefore one should make money while the other loses. The ideal would be for both to make money so I would need to find stocks that are in the same sector, one that looks like it’s going to rise and another that looks like it may fall. It’s certainly something to think about. I think my current strategy will come good when we see a trending market but when we have a sideways market such as now it does not perform as well. I think a “Hedging” strategy could be a good solution to this problem. It’s certainly something to think about. As always if you have any thoughts feel free to share them.
Until next time,
“May the markets be with you!”
Harry,
The Spread Betting Beginner
