First EOD Trade…

Kaffee

Established member
554 1
Well let's be clear about one thing, I'm a complete novice at spread betting. I was put off for ages by the "90% of day traders lose" stories that circulate.

I guess that could be true, and yes I am down a lot since I first dabbled in August, but I'm only staking small sums so I'm still in the game which is why I'm sure most daytraders lose, because they are forced to give it up.

The pick list above is predominantly defensive (Utilities) and that is my bias for the future. Mind, you, having just typed that, should add I shorted GKN at 1.68 today as a 10% rise for a FTSE 100 stock is unlikely to hold currently.

As for EUR/USD it's just range trading, but notice how the immediate resistance (circa 1.0810) was taken out big time today. It's come back form 1.090 several times this p.m. so I'm now short, with a target of 50 points. Stops in a 1.095 (yes I know it's risk to reward of 1:1)

As for Naz's course, I'm a bit like the Japanese, don't have many original ideas, but am fairly good at tailoring other peoples. I just need to be shown the right route to take.

Be lucky.
 

SoldierOfOne

Junior member
39 0
Hi Chartman, Skimbleshanks and Kaffee et al
Thanks for the replies to my EOD query. I’m stuck at the following junction and wondered if anyone could help me – putting into practice what I’ve been reading up on:-

• Mainly trend patterns, reversal and continuations, ascending triangles etc (along with money management, stops, entries, exits) but what about for the ‘supporting cast’ – any pointers as the what you have found useful and why? (not looking for a ‘system’ but perhaps some places to look)

• (Kaffee) which chart do you use for the EUR-USD (looked on FT.com but no joy)

• Simulators – have come across TradIndex and City Index but there is only a limited choice of shares and indices to ‘virtual’ trade with. Or have I missed something? So, I’m thinking of either recording my virtual trades via spreadsheet (ignores sb bias) or opening a FINs account (more ‘real’), where I believe one can bet with 1p/point

Any comments on the above warmly welcomed.

TIA

SoldierofOne
 

Dr Mike

Member
92 1
I would recommend Fins - you can bet 1p a point for the first 8 weeks (after that 50p) and get the real life experience of setting stops, missing fills, being distracted before you set the stop etc. etc.

Also Fins S&P 500 future is very cheap to play - the point is the whole number not the decimal although the spreads are big.

HTH
 

Skimbleshanks

1
2,325 16
Soldier:

No matter who you use (I too would opt for Fins because of the 1p starter), you will soon add another element to your trading - emotion.

This, quite frankly, is the killer. There's nothing on paper which can prepare you for the emotion of trading - even at 1p a point. I'd be staggered if the emotional side doesn't surprise you by its forcefulness.

Very few can trade without emotion (fear, greed, panic, rabbit in the headlights, etc), and it really is the key to whether you will make it as a trader. The best way that I know to keep emotion at bay is to pay particular attention to your risk exposure. A tiny risk exposure equates to less emotion when it goes t*ts up (which it will, often) because you know that tomorrow is another day and you can come back and play the game again.

If you keep your losses tiny, you will stay in the game. That, at this stage is all you should be asking for. Don't even think about profit.

Newbies want to trade because they want big profits. The older, experienced traders just want to stay in the game; profits are secondary.
 

Kaffee

Established member
554 1
Here you go... got this charting kit from Trade2Win...

http://www.currencypro.com/graph.php

Goalposts have moved on EUR/USD again, got stopped out of my last position.... Talk of 1.12 before the Iraq crisis is over.

GKN came good though. Have a look at BOC, near support currently... might bounce.

Be lucky.
 

SoldierOfOne

Junior member
39 0
Hi Kaffee
Apologies for the delay in responding. I will look at the currency chart tomorrow.

I have indeed looked at BOC (713.50p), and, to be honest, not sure what to make of it.

The 2 year chart shows resistance at 820-830p; a descending triangle has been breached earlier this year



OBV drifting downwards
MACD and Signal Line – no bullish sign here
RSI – neither over-bought or under sold

YTD Chart
Another descending triangle…looks like it has broken through its support at 730p

In order to learn, I’m going to paper trade this as follows

Short
Target 650p (reward = 63.5 points) and this is based on measuring the widest part of the descending triangle (80 points) and dropping this down from 730p
Stop Loss 740p (risk = 26.5 points)
This gives a risk/reward of 2.40, which I'm comfortable with.

I realise this is probably the opposite of what you were suggesting, Kaffee, but I’m looking to learn and would appreciate any one’s views.

Skimbleshanks – thanks for the wise words. Have indeed applied for a FINs account but will keep my powder dry for a while (as you can probably tell from the above analysis!)

Cheerio

SoldierofOne
 

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