Spread Betting Diary
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A full-time spread betting trader talks through the highs and lows of the markets, supplied and sponsored by paddypowertrader.
Spread Betting Diary - 24 Feb 2009
The eerie calm of yesterday was replaced by steady selling in the US session; The Dow Jones fell below 7300 and the DAX 30 hit a 5-year low.
Whatever I write today is likely to be out of date by the time you read this, such is the pace of things at the moment.
I managed to stay calm during Friday’s late panic, but on the whole I was too calm as there were a myriad of opportunities. I voted against buying FTSE down at 3850; rationally, I reckoned the market was due a bounce, but equally, I knew it wouldn’t be the shrewdest manoeuvre if the US banks were nationalised over the weekend. I used a similar logic to avoid the Dow and writing options on FTSE.
On Friday I’d opened a fairly reckless short in gold, thinking that there was just a bit too much hype and froth around. Well, the froth continued, but I stayed with my short, adding to it at $1002. I closed out this second bet at $982 early this morning, but I’m still running the original short, which is currently just offside.
I had a nightmare trading FX today; all was quiet at the UK open so I retired to bed with a passing touch of 'man flu'. Once my back was turned the forex markets woke up with a bang sending GBP/USD up through $1.46 for a speedy 80-pip gain. There was no point in chasing it so I saved my capital for the US session.
Sterling looked OK; the 20 MAV on the 30-minute chart was playing a decent supporting role so I favoured a long bet if I got a decent trigger. On this occasion my ‘decent trigger’ was a trap. I bought £2 at $1.4618, preferring a small bet with a wide stop loss to keep me in the game, but after a brief spell in the money the trade lost momentum. I honoured my stop at $1.4560 as this was allowing for a test of the supporting moving average, but ultimately lost the trade for a loss of £116. Today, GBPUSD failed to hold its 50-day moving average, but I sort of feel there’s another rally there soon. Of course, if equities tank then all bets are off so for today I’ll watch and learn.
And talking of watching and learning; the London Irish back line were the best I’ve seen all season, and that was without Tagicakibau and Delon Armitage. It took them until the second half to wake up, but then they looked capable of scoring every time they got the ball. Fair play.
Happy Trading
The above content does not constitute investment advice.
Neither CleanFinancial.com nor paddypowertrader accepts any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.
Our Hero, FT, is a full-time trader, with nothing but two kids to distract him. He likes to think that his technique is evolving but still hasn’t the temperament or money to back the big calls. He prefers to trade between 1 and 3 times a day, aiming to take regular small gains, but feels part of the evolution is in not dealing if the conditions don’t feel right.
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Risk Warning: Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
'Spread Betting Diary' by FT, updated 27-Feb-09
For related pages also see:
Spread Betting Diary, updated 27-Feb-09
Spread Betting Diary: A full-time spread betting trader talks through the highs and lows of the markets...read article: Spread Betting Diary.
Spread Betting Trader, updated 17-Feb-09
Spread Betting Trader: A Day Trader runs us through his view of the financial markets...read article: Spread Betting Trader.
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