Posts from — September 2008
Do not forget, each weekday we provide a Daily Trading Update each morning and around the close of the markets there is a Late Market Update.
Both come from leading spread betting companies and provide an insight into the current markets including commentary on support levels, resistance levels, big winners / losers and personal opinions on how the markets could play out.
Today’s Late Trading Update:
“Of course there still is only one game in town as far as financial markets are concerned and it is the progress, or lack of it, for the $700 billion bail out. The major stock indices have steadily given… ” read latest update >> The Late Trading Update.
The Spread Trading article has now been updated:
“Congress continues to wrangle over the Paulson plan but you have to believe that some form of accord will come out of Capitol Hill by the end of today. We can expect wildly gyrating markets over today’s session as rumour and counter rumour permeates through the closed doors where negotiations are taking place.
“Several Republican Senators (let alone the odd Democrat) are unhappy about being bounced into such a serious action with so little information. It is often the small print on which actions such as this flounder and the plan has hardly been thought of just yet let alone enshrined in law. It might be some while yet, even if there is broad agreement, before the first loan is acquired by the ‘Bad Bank’. To concentrate their minds the Fed wiped out the… ” read full article >> Spread Trading.
As the markets seem to have calmed down for two minutes? lets get back to a few more tips.
Tip 86. I’m winning, what should I do?
This will happen to many spread bettors. If you break spread betting down to betting high / low or tossing a coin then if you trade enough you should hit a winning sequence through luck. Although you may hit a few bad patches along the way.
Clearly we advise lots of research and never actually tossing a coin. However if you do trade for long enough you can end up on-a-roll. This has certainly happened to me a number of times.
Whilst my research has been sound I have had sequences where I have simply benefited from other factors affecting the market. Other times some decisions have just been too obvious and easy eg buying Financials and the FTSE 100 immediately after the short selling ban for a quick profit.
However you hit your winning sequence try to ignore your ego and remember how you got there. After a bit of luck, you will often be tempted to:
- Increase your stake size
- Trade more frequently
- Trade markets you are less familiar with
I do love “I increased my stake size because overall I knew I would still be up”.
In short, watch out when trading after good profits and stick to your strategy.
If you are altering your trading strategy eg increasing stakes sizes due to grounded and well founded opinion, fine. However, do not forget that trading larger stakes can also alter your trading, eg with larger stakes you might not be able to keep that cool head that got you your profits in the first place.
Do not forget you will also need some of the profits to cover your losses on those days when the whole market is clearly conspiring against you.
Keep your money…do not try to give it back as fast as you can.
Another new feature today, a quick look at the US:
“It is nice to see that the ‘Sage of Omaha’ even has the power to halt an entire market move. If I was sitting at my desk and was asked which bank in the world would I buy into, with any spare $8bn I happened to have lying around, I think that…” read full article >> US Markets and the Poulson Bad Bank Strategy.
So how are the various short selling bans affecting spread betting? What can you do / what can’t you do?
“Looking for some clarification, Financial Spreads sent us the following details on how they are treating the various bans…” read full article >> Short Selling Ban and Spread Betting.
For a full list of affected markets >> A full list of the affected markets.