Well it’s been a while since my last post for a few reasons. Firstly work is hectic and second it was my birthday last week and I had family visiting to help me celebrate. It’s always nice to see all the family although the time seems to whizz past when they are here. Anyway onto the business of spread betting.
Well the markets seem to be finding some confidence from somewhere. I’m not sure where and I’m not convinced that the recent upturn in price is nothing more than a rally because of the depth of the previous down move. Now I have no idea what the markets are going to do next but will all the doom and gloom there is about I don’t see much for people to be optimistic about. At least one good thing since I last updated it seems the recent riots have now stopped. I have to say I think it was bad few out of what is generally a good population. I totally agree that they need to be dealt with using the full force of the law. I understand that times are tough for people but looting from other people is not the answer. Anyway that’s enough of that, back to the financial markets.
You may recall in my last post “Did anyone say Bear Market Rally” that I pointed out Vince Stanziones system would’ve got you short of the FTSE 100 on 18th July. The thing I forgot to mention is on the same day a super trend cross occurred. This would’ve been a potential trade for myself according to my strategy. It was too much risk for me but never the less was a potential trade. If you assume a short at the low of the day it would’ve been 5752. The super trend value is 5443 meaning a 300 point locked in profit. Ok so the initial risk would’ve been around 275 points so as it stands the trade is only just above a 1:1 risk reward ratio but there could potentially be further for the FTSE to go. I have no idea what it’s going to do but I how I said there’s that much doom and gloom about I can’t see a bull market returning for a while yet.
My own spread betting has stagnated. With such high volatility there haven’t been many trading opportunities that fit with my strategy. In fact last week there was one day when there were no super trend cross overs at all. That is something that I have not seen for quite a while. Anyway there is no rush for trades to come along. When the right opportunities arise I will hop on board then and hopefully make my profit.
In other news I will be having an article published in the UK edition of Your Trading Edge magazine. If you would like to read the article you can get a years free digital subscription on the Your Trading Edge website. In the where did you hear about us select the Spread Betting Beginner option. Hopefully you will find the article useful, it’s all about developing a spread betting strategy. As far as I’m aware it will be in the next issue of the magazine which I believe is available at the end of this month. So sign up now and you’ll be e-mailed when the next edition is available.
Until next time,
“May the markets be with you!”
The Spread Betting Beginner