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.

I came to spread betting with no previous experience a few years back. 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.

From there I set up a demonstration account and bought a few books. My philosophy was that if I could double the money in the demo account I would invest for real. In a demonstration account you get 10,000 to trade with. In my naivety I thought it would be easy to double the account. A demonstration account allows you 10,000 fun money and generally doesn’t have the full functionality (delayed prices) but gives you a good start and thought me some crucial lessons with none of the risk.

In those few months I learned a lot about myself and the emotions that run through you as you trade. I found the demonstration accounts invaluable as I made all the basic mistakes of someone starting out but didn’t have to risk 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!

  1. No comments yet.
  1. No trackbacks yet.