Spread Trading Tips Research and Preparation
So here’s the next set of Spread Betting Tips. More research, more prep and more bad jokes.
Spread Trading Research and Preparation
12. Make sure you use realistic scenarios when you paper trade. There’s no point in trading 20-30 markets at a time. It’s unlikely that you’ll have time to research and trade 20-30 positions in real life. Aim for 0-10 open positions.
13. If you’re experiencing recurring losses then look at where you’re going wrong. Maintain paper trading until your research and strategy is sound. It’s boring but better to lose some time on research and paper trading than losing time on research and losing money on recurring losses / large random losses you don’t understand
14. So when you were younger did you want to be the Karate Kid or Luke Skywalker? Or both? Or neither? It doesn’t matter which option you preferred but these themes share the lesson of learning and that expertise takes time.
Let’s assume that a hazy blue Sir Alec Guinness isn’t standing behind you. Let’s also assume that Mr. Miyagi doesn’t live across the road. A lot of the training is down to you.
It’s healthy to have mentors, trading colleagues, chat room ‘buddies?’ but ultimately your trading is down to you. When it goes wrong it’s unlikely the ladies and gents in Financial Forum are going to have a whip round for you.
If you’re new to spread trading ensure you complete lots of research, testing, research, testing and more research and testing, I think you get the idea.
This will help you stop trading on hunches. It will reduce your losses and hopefully increase your profits. Likewise, even though you can’t be bothered, keep noting everything in your Trading Spreadsheet. Your spreadsheet will help you analyse what you’re doing well and what you’re doing badly.
15. Noting Winning and Losing Trades. If a trade goes against you, note it down and why. If a trade goes your way, note it down and why. You should do this even if the market went up / down because of the reason you originally thought it would.