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:

  1. Increase your stake size
  2. Trade more frequently
  3. 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.

Good Luck!

DB

Clean Financial - Spread Betting