Category: Spread Betting Strategies

Well with the FTSE rebounding a bit today because of the bail out of the Irish republic it’s not been a bad day for my stocks. My pyramids in Debenhams and F & C Asset management are both showing a small profit. Obviously it’s not the end of the day yet so that could still change.

I had a little time today to look for new trades and I have made one new trade. I’ve gone long on Vodafone £1 per point at 168.175 with a stop set at 163.13. I was originally going to set my stop at 164 but when I entered the trade in my order ticket this was the stop position it gave me and I couldn’t be bothered to change it. This is not a super trend cross buy but it is a close to super trend stop buy. It’s basically the same as the strategy I’ve used for 3i infrastructure, Northern Foods etc. Essentially it’s the same conditions in which I would pyramid into an existing position except I don’t have any profit locked in. Also my stop value is below the super trend stop price initially with a view to move this as the position moves into profit. If you take a look at the chart for Vodafone I’m sure you will agree that visually the chart shows a strong uptrend recently. My aim is to get a piece of this continued upward move.

If you’ve read Malcolm Pryors The Financial Spread Betting Handbook: A Guide to Making Money Trading Spread Bets, you will be aware he details some trend following strategies and to enter on pull backs and rallies, depending if up or down trend. Identifying a pull back was always part of the strategy that I struggled with. I think using the super trend indicator is quite a neat solution to this.

I really like the super trend indicator and you can read my notes on it’s construction here. I’ve tried my best to explain each line of the code and give a general overview of how it works. I don’t know if I’ve done a great job but if there is anything you don’t understand or isn’t clear please let me know and I’ll to my best to explain it clearer.

I’ll probably try and add more on ATR at some point soon, as well as adding more on technical analysis and other indicators etc. There is so much I want to add but I just don’t get the time. I wish I could do this full time but unfortunately I have bills to pay, as we all do, and it’s the day job that covers those for the time being.

Since I’ve had no response about my Northern Foods question on the forum I posted the same question on the spread betting central forum. It would seem that no one really knows quite what happens here so I’ll have to e-mail my spread betting firm (CMC markets) to find out. I’ll let you know more when I know more.

I don’t know if any of you have heard of Martin Lewis, the “Money Saving Expert”, but he’s uncovered hidden links to heavily discounted products on Amazon. The discounts vary but apparently they are anything from 15% to 99%. I’ve selected some of the best categories that you might be interested in. I thought with Christmas not that far away some of these could come in handy. Anyway take a look by clicking on the links below.

• DVD & Blu-ray
• Jewellery
• Books
• Wii Games
• PC Software
• PS3 Games
• Digital Cameras
• Toys & Games

There are more categories, if you want me to list them all I can. Just let me know.

Until next time,
“May the markets be with you!”
Spread betting beginner

I can’t believe another day has come and gone. The time today has just flew past. Yet again not too much to report from me trading wise. Debenhams pyramided today. I set a buy order for 70, which was filled at 69.901, slippage yet again. My stop on this trade is quite tight at 68. So far my F&C asset management trade is holding up. The spread bet has just moved into a slight profit, hopefully the current pullback has ended and is now ready for a leap upwards.

3i Infrastructure is up a bit again. I should be looking to move my stop on this position. This trade was a bit of a test, as they all are, of a strategy using the super trend indicator but not my super trend cross strategy. The price was close to the super trend stop price (within 3%) and it has been consolidating for a while. Hopefully the price will continue to rise. Maybe it’s the rumour that I started yesterday about a 3i take over bid? Who knows. Just so you know, I have no idea if there is a take over bid on the table etc. aor am I affiliated with 3i in anyway. The rumour is supposed to be taken in humour. Well would you look at that I’m a poet and I don’t know it.

Taking a look at the FTSE it’s not looking good for it getting past 6000 by the end of the year. I would assume all the EU bailout talk has rattled the markets which is why it’s taken a nose dive. Bad news for my pension, but hey! If I could predict where the FTSE was going to go and when then I’d be a rich man. The sad fact is I can’t and no one can.

I’ve just had a look for super trend cross stocks and there are 27 today. Quite a lot compared to the usual 5 or 6, yesterday there was only 1. Most of them are selling opportunities, hardly surprising considering the FTSE tanked today. I’ve yet to take on a short opportunity using my super trend strategy, maybe today will provide me with an opportunity. I’ll take a look later and let you know.

Personally I still think the FTSE will pass 6000, but before the new year? Well now I’m not so sure. The thing is this correction in the FTSE is long overdue. It hasn’t corrected itself much since the low of around 5100 back in august. I think things could be shaky for the next few days, after which I think things will start to settle down again. But hey what do I know! The FTSE could fall to 3000 tomorrow for all I know.

Until next time,
“May the markets be with you!”
Spread betting beginner

I thought I’d write a quick post to let you all know that I’ve added my super trend strategy to the site today. It’s a work in progress and I have yet to add more detail about the construction of the indicator. You can take a look at the strategy here and leave me any feedback you might have here.

I’ll try and get the super trend indicator construction page added to the site as soon as I can.

Thanks to all in advance.
Enjoy the rest of your weekend.

Until next time,
“May the markets be with you!”
Spread betting beginner