9
Jan
2010
Financial Spread Betting – End of Week 2 – With Graphs!
By Jon Busby. Posted in Stocks-And-Shares | No Comments »Ok – So I wrote this post a while ago.. since then I got a little busy with Christmas and various other things along the way.. Apologies for the delay getting this out!
So it’s the end of my second week trying out spread betting for real.. And I’m pleased to say, I’m still up on my original investment.. (graph attached below – if you’re viewing this on an iPhone.. I’m sorry, but its flash based!)
So what have I learnt this week?
Binaries are not as awesome as previously thought...why? Because part of a good strategy is to ensure your losses can be limited to be less than your gains. Unfortunately with my current strategy I don’t buy the binaries until they meet my pre-defined risk factor.. In this case the value is usually 75, meaning my profits can be a tasty 25 pips.. But my potential losses can be up to 3 times that (75pips)… And.. As you (currently) can’t place stop losses on binaries this usually means that I do make the full loss if the Market goes against me (this is what happened during the beginning of the week).
However with these risk factors and the current strategy I’m using, things seem to be working well.. but more on this next week in my next post
Stocks and Shares – Tend to move too slowly to make any real money at my current risk level – perhaps these would be good low risk choices when I start tradining in real amounts (ie £/point instead of 10p!), but often the spreads are just too large for me at the moment for small stocks to be worth my effort.
Trading Plans – Are *%@£ing important. Seriously. Every time I deviate from my plan I loose, everytime I stick to it I win, yet again and again I’m finding myself straying from my plan for one reason or another, which I justify, which 90% of the time fails.
Overall its been a pretty roller-coaster ride for the past two weeks, but I’ve got a good feeling about this!
UPDATED : IG markets have given me a call about opening a new account with them – more on that soon, but as their platform is far superior to Finnspreads (with iPhone / Mobile Trading), with no minimum deposit, I’m going to give it a go soon!
Jon Busby is a serial entrepreneur, digital architect, and developer (oh, and a Blogger if you're reading this) who likes stalking people on Social Media sites.
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