About Me
I have a fund I use for trading. It is in my view a large amount and every year I either add to it if i have lost or take out if I’m in profit. You must invest in what you feel comfortable investing in and certainly no more than you can afford to lose. I do a lot of research before I put my money down. Sometimes I lose, sometimes I win. I have been investing for many years and try my utmost to cover as much ground as I can. I suspect many of us would like to trade full time but in reality have assessed that there’s not enough capital to ride the bad times, and still generate a decent income.
When I discovered spread trading I was instantly interested, but wanted to understand it fully before risking any money. And not wanting to learn things the hard way by losing my hard-earned cash, I decided simply to learn it. I read many trading and analysis books, used every online resource I could find to increase my knowledge and learned IG’s trading platform inside out. Each time I learned something new I tried to apply it, using live prices to write down my trade entries and exits over a long period to actually put everything to use prior to risking any capital.
Having said that when I started out I still ended losing almost 80% of my initial stake. Since then have taken much more care, timing and planning (and having read a few more books) I have rebuilt it with small trades and without the need to inject much further cash. When I started to turn things round I was risking ridiculously small amounts it was hardly worth the bother, but it help me develop a strategy that works for me. It isn’t anything special I just try and stick to my own rules.
Today, I like to think of myself as one of the ‘consistent small winners’ with stakes of £1 and £2 p/p. My aim is to make £50-£100 per day and once that target is met I switch off and go and do something else till tomorrow. In the past, like everyone else, I have got carried away and increased my exposure but found out the hard way therein lies ruin. Well, not exactly ruin but you will end up handing back all your winnings- and some. Best to keep the positions small and manageable.
I believe spread betting is a useful adjunct to ‘proper investing’ if used as part of a coherent strategy. You just have to be careful and take a disciplined approach. The main rule I have is try and protect your initial stake at all costs. Remember that all your winnings can disappear as fast, or faster, than they came, especially if you chase your losses – same as in any gambling. Those of us who do it, and I am one of them, expect one of two things – boom or bust! Let it be the former!