Still no reply from CMC markets! - November 24, 2010 by Harry

Well another trading day has been and gone. It’s been a bit of a better day with the FTSE rising 80 odd points. My position in Vodafone stopped out yesterday for a loss of £5. It actually closed out before the end of trading so my slippage concerns weren’t needed after all.


I’ve still had no reply from my spread betting firm (CMC markets) about the northern foods merger. I wonder will they respond tomorrow? It’s certainly not a great advert for their customer service. I’m still considering to move from them. I haven’t decided who too yet but when I do I’ll let you know.


I’ve also decided against purchasing one of Malcolm Pryors DVDs. It’s probably a bit too costly especially with it being Christmas. Maybe I’ll consider it again in the new year.


No new trades today. At the moment there is nothing that seems terribly appealing to me. I’m in no hurry to trade anyway, I know that an opportunity will come along soon.


I was thinking of trying to develop a new strategy, with help from you, if that’s ok. It will mainly be for a bit of fun, but who knows maybe we’ll create a profitable strategy together. I’ve started a new forum post and added the first, of many, criteria for a trade setup. I’ve stipulated that we will buy only when price is above the 200 day EMA (Exponential moving average) and sell only when the price is below the 200 day EMA. Now I’m throwing it open to the floor. Add what you want, It’s on a first come first served basis, so you cant add conflicting conditions. Hopefully it will be a bit of fun and useful for us all to learn a little more on what is required to develop a strategy. Thanks in advance for your participation.


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

Predicting the future of the FTSE - November 23, 2010 by Harry

Well with the FTSE down another 50 odd points (so far) it’s not looking too rosy. It would seem that the resistance level around 5875 has thus far held true. The question is will the FTSE gain enough momentum go get up past it or will it continue to fall. I suspect it may be the latter. Taking a look at the chart it looks like a potential head and shoulders pattern has emerged or is in the process of emerging. Not a good sign. I suspect we could see a the FTSE trading between the 5000 – 5900 range before it makes a move either way. All that said I really have no idea. I’m only guessing what I think might happen, I don’t know for sure. One person does know what the FTSE is going to do! You’re intrigued now aren’t you. Tony Loton correctly predicted “It will fluctuate. That’s all we know “. Spot on!


Not surprisingly since, the FTSE dropped, some of my positions have dropped as well. Most notably Vodafone. It’s currently very close to it’s stop level. Will it stop out today? Maybe tomorrow? Maybe not at all. I am slightly concerned with it getting so close to it’s stop level that I will suffer slippage yet again. I guess we’ll know tomorrow what happens.


No new trades today. There is nothing that is appealing to me at the moment. There are a few orders that I may look to place. I read Tony Lotons blog post earlier and saw he’s either established new positions or has orders on for the Irish banks. I already have an order for Bank or Ireland set to buy at 14 with a stop set at 4. There is also allied Irish and Irish life which I’m considering placing orders for. They are all close to their all time lows and could potentially bounce of these levels as support. I haven’t decided what to do yet when I have I’ll let you know.


I’ve still had no reply from CMC markets about the Northern foods merger. I have to say I’m suitably unimpressed with their customer service so far. So much so that I am considering to switch spread betting companies to SpreadEx or SpreadCo. Maybe I’ll give Gekko a go as they offer factional bets. I was going to write about CMCs new charting tools that they have just added. It’s a step in the right direction but I personally think they have a long way to go.


Well that’s enough of that rant. Is it really that hard for the spread betting company to e-mail me back. I’ve sent three e-mails so far and I’ve had nothing. I’m just going to keep e-mailing them everyday until I get a response. They can’t ignore me forever, then again maybe they can.


Oh one last thing, I am thinking of possibly treating myself to one of Malcolm Pryors DVDs for X-mas. Does anyone have either of them? If so is it any good? If you have both which one would you recommend? I’m going to start a new forum topic so if you could post a reply there that would great thanks.


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

Another spread betting lesson learned the hard way! - November 8, 2010 by Harry

Not a great start to the day today. I wanted to exit my position in Bank of Ireland as soon as I could. The earliest opportunity I got to do this was just after 9:30 this morning. Knowing what I am like I decided not to exit the trade straight away, I decided that I would move my stop as close as I could. This way it takes any emotion out of it for me. If I had to click the sell button I probably would’ve ended up watching the price slide all the way to my original stop hopping that it would recover and I would make less of a loss.


The price I got for the order was 37.39. The stop was hit shortly after I made the change. I lost £6.61 on the trade. Still it’s another lesson. I shouldn’t just place orders and forget about them, and I should check, check and check again that I am sure there is a valid reason for the trade. Looking back now I don’t know what I was thinking when I placed the trade.


All that said I have placed a new order for the bank of Ireland. This time it’s a buy at 14 with a stop set at 6. I will be monitoring this and if it hasn’t executed within a month(4 weeks) the I will close the order.


I’ve made two new trades today. Buy Yell at 16.422 with a stop at 13, and Buy Taylor Wimpey at 26.13 with a stop at 21. These are both super trend cross over buys. We’ll see how they pan out.


I noticed today that Malcolm Pryor on Short Term Spread Betting: Winning Strategies for Active Traders DVD is available for under £200. Also you can pre order Malcolms new DVD Entry Level Spread Betting Strategies which is just over £200. I mention this because the sub £200 price tag is cheaper than if you buy it from spread betting central. I’ve also added these to my reading list page so if you fancy ordering them at a later date you can from there.


You may have noticed over the weekend that I added a new link to my useful sites list. spread betting trader is running a very interesting experiment over on his blog. On which I’m sure Tony Loton will be very interested in. He’s running two accounts. On of which he trades based on his professional tips he receives the other he is trading according to Tonys position trading strategy. It will be interesting to see how it pans out for him. I know I will be watching with an eager eye.


Spread betting DVDs



Oh I almost forgot to mention the new spread betting forum is up and running. BigAl asked a question on there about the IGindex trading platform. I did my best to help him out but not having a real account with them I think someone else might be better suited to help him.



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

Will the FTSE 100 pass 6000 by the end of the year? - November 5, 2010 by Harry

Sorry for no post yesterday. I was working late and by the time I’d finished I’d had enough. Not that much to report on the trading front. Persimmon was my star performer climbing around 25pts on the day. It closed at around 360 so currently around £21 in the black. I’ve moved my stop slightly to 335 just below the recent low around 336. This reduces my monetary risk on this trade to £4.25. I would love to move my stop in closer but I would risk stopping out too early, I want to stop in and make as much out of the trade as I can.


Moving stops has always been something the I have found to be tricky. Take this trade for example. Since it’s moved into a decent profit I’ve moved my stop to below the most recent low. This makes sense. If the trade continues to rise rapidly as it has yesterday, then where do I move my stop. Do I trail it below the low of the last few days? I know in Malcolm Pryors book winning spread betting strategies he suggests, “When the trade reaches the half way point(between support and resistance) trail the stop below the low of the last two weeks.” The thing is if the price continued to rocket the way it has the trade could peak and I could miss the boat.


Making these comments about stops has made me realise that this is something that I seriously need to work on. I’m clearly trading here without a fully defined strategy behind the trade. As we all know trading without a clearly defined strategy is a sure fire way to the poor house, “Failure to plan, is a plan to FAIL!” I think this weekend will I will be spending some time on getting the strategies that I trade clearly defined. If they are not clearly defined then I cannot trade them. Simple as that.


Moving on to other news in the world of financial spread betting. The FTSE 100 looks to me as if it’s all set to be touching or passing the 6000 mark before the year is out. I don’t know what other peoples thoughts are on this but looking at the chart I think the recent upward move is set to continue. I’d love to be able to trade the FTSE 100 but my spread betting funds just don’t justify the trade. I guess that I at least have one thing right in my trading. I think my money management is spot on. In fact I think if it wasn’t I would not be trading today.


Anyway back to the FTSE 100. I do have some money invested in the FTSE, although it’s the FTSE all share not the FTSE 100. I have a self invested pension. There are several funds which I can choose from one of which is a FTSE all share index tracker. I know it’s not exactly the same as the FTSE 100, but the charts tend to pan out roughly the same. It’s not an ideal trading solution. If I move the funds it takes a few days for the trade to execute, so I can’t go moving it in and out on a daily basis. What it does enable me to do is look for the longer term trends and move it in and out accordingly. I moved it out in April 2008 and back in in April 2009. I tried more recently to move it out in April and back in in Jun/July. I wasn’t as successful this time and I think I ended up losing more than if I had just left it alone but hey you can’t win them all. Hopefully if I can sit out most of the down swings and get most of the upward moves then this will grow my pension nicely. I think in 2009 I managed to grow it by around 25% if my memory serves correct. I would be nice if I could achieve this every year, but the reality will be somewhat different I’m sure.


I’ll possibly post again at the end of the day with a brief update on how my trades have progressed.



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

Which Spread Betting Firm should I choose? - October 29, 2010 by Harry

I’ve been trying to transfer money between spread betting firms today. Actually it’s between my old CMC markets account and my new CMC account. Why they can’t just give me a button on the platform that lets me do it myself? I don’t know? I was thinking to move away from CMC markets when they close my old account but I’ve decided to give them a little longer yet. When I spoke to the CMC markets man he told me that they should be updating their charts etc. Around the middle of next month. So I’ll probably give them till the end of the year to make their updates and then decide if it’s time to move on or not. I still have accounts with tradefair, capital spreads and tdwaterhouse (formerly E*Trade). I may look to open some new accounts soon but I’m not sure which spread betting firm to choose. I know SpreadEx have an introductory offer for new customers so maybe I’ll try them.


I’ve only done one thing relating to my spread betting today and that is to move my stop on my EAGA position. I’ve moved my stop to 59 locking in a whopping £1.71 profit. With the price currently hovering around 62 I’m willing to risk the extra £3 profit in hope of a further rise. Will it happen, I have no idea, but it could do.


My order for persimmon nearly executed today. With price dropping to 342.5 it has been 1.5 points away from buying me into the trade. This is support zone buy and if price can bounce off this support level back up to the recent high of 412 then I think it’s worth the £10 risk. The only thing I’m not 100% sure on here is when to trail my stop. In Malcolm Pryors book winning spread betting strategies he suggests when the price reaches the midway point to trail the stop below the low of the last two weeks. Maybe I’ll do this, at the moment It’s the only solution to trailing my stop that I have .


UPDATE: I just checked and persimmon closed the day with a buy price of 341.06. I suspect this trade may trigger on Monday morning at the open.


Thanks to Alan for his comment again. I know the feeling of the FTSE goes up and your portfolio value goes down. It sometimes seems to make no sense what so ever. The thing I try and do now is keep an eye on the overall market (FTSE) but keep a closer eye on my trades. Like Alan says “I’ve given up trying to work it out..!!”


That’s about all from me today. If I get chance to update the site over the weekend I will. I’m working on updating the spread betting strategies section and want to add details of my super trend strategy along with more detail on the super trend construction and function.


Until next time,
“May the markets be with you!”
Spread Betting Beginner