My order that I placed yesterday was not executed today. I suspec it will not execute tomorrow either although I am leaving it open for a few more days in case the price does continue to drop further. If you have looked at the chart you will clearly see that the low of yesterday 110.7 is below the 1/3 retracement of 111.1 so this is probably the start of a new upward movement. I suppose I could just click buy at some time tomorrow if I am expecting the price to continue to rise but I wont.

I have lost money by making rash descisions when it comes to trading. When I first started I looked at a chart and thought its going up so it will continue to go up so I’ll buy. Big mistake. More often than not I was buying at the top and the price started to drop as soon as I clicked the buy button. It’s for this reason that I now never click the buy or sell buttons. I prefer to plan my trades and set them up as orders in my spread betting account. I’m even trying not to click the buy or sell button to take any profit. I want to move up my stop loss orders to keep loocking in profit untill the move is over so I caputre as much of it as possible. This way I cut my losses short and let my profits run and run and run.

So my rule number two for the spread betting beginner is never click the buy or sell button.

When my profits start to accumulate I am going to try pyramiding my position to make even more profits. An explination on pyramiding will have to wait untill I am actually at a place to practice it which at the moment seems like quite a way off. But we’ll wait and see.

So anyway my Beazley order has yet to be triggered but I suspect Beazley will now be starting a new upward movement and my order will not be filled. But I don’t mind. There is always another day, another stock, another trade. Mastering your emotions is a big part of becoming a successful trader something that I am just starting to realise. There are many good books about this and a couple I would reccomend are: Trade Your Way to Financial Freedom and Super Trader: Make Consistent Profits in Good and Bad Markets

For anyone that is interested I may post earlier from now on. I aim to do my analysis of charts and set up any orders in the evenings so I will probably report them the following morning if I get time.

Other news my redrow position stopped ot yesterday for a loss of £17.10. This is way above my risk level of 1% but I made this trade before I started to use my 1% money mangement strategy.
Inchcape stopped out today for a loss of £4.90.

Today has seen the FTSE rise to around 5480 any both of my two commonly used spread betting accounts are now showing a profit of around £20 each compaired to both showing losses yesterday. The aim is to keep my existing postions open an capture as much profit from them as possible while all the time looking for new potential trades.

I have also had e-mails back from my spread betting companies and I can get you some free money if you are interested when you open an account with them.

I can get you £100 with capital spreads
£100 with tradefair
£70 with E*trade

Since this is a refer a friend scheme the numbers are limited to 5 friends for each account so e-mail me quick if you are interested

March 2, 2010 by Harry
Category: blog