With the FTSE 100 continuing to slide further today I would suspect the next target will be around the 5000 mark. With is shedding another 150 points or so it gas fell about 470points in three days. Would’ve made a nice little profit if you had been on the right side of that fall. I personally don’t touch the FTSE 100 these days due to having my fingers burnt in the past. As the last few days illustrates all too well the FTSE 100 can move very far very quickly. It’s far too volatile and unpredictable so I prefer to leave it alone these days. It does however offer a goof barometer for the markets I do trade, UK equities, and I can make my trades based on what the FTSE 100 is doing. For instance the recent sideways market meant I could look for longs or shorts according to my strategy. If, and I must stress IF, the markets now enter bear mode and a new down trend forms, I shall only be looking for new short positions.
My own spread betting saw one new trade today. Surprise surprise it was a short. I went short Henderson Group at 139.92 with an initial stop set at 165. I moved my stop to 161 inline with my strategy and so I have just over a £20 risk. So I now have two short positions and we’ll see how they pan out. If the FTSE 100 does enter a bear phase I could be laughing with these shorts but then again it could enter a bear phase and I still lose money on them. It’s the nature of the beast with trading. No one can predict what is going to happen, just look at the last few days. The best thing, in my view, is take a look at what is happening and place your trades accordingly.
That’s all from me for this week. I did want to send out the August news letter but I’m having some e-mail issues which I am working to resolve so I’m afraid it will have to wait.
Have a great weekend everyone and I’ll see you back here Monday. Lets hope the markets behave better next week.
Until next time,
“May the markets be with you!”
The Spread Betting Beginner