Making money in these uncertain times


Experienced member
As Market participants we are all governed by the fear and greed of the markets.Each day we trade we use signals to indicate which way we think the market may go.

However isn't the best way to make money is to react to what the market does and forget our opinion.If we react to market moves as they unfold with a trading strategy then we take away our opinions and our profits are governed by our discipline in following our rules.

First we need a trading platform that gives us access to the markets with the ability to trade both long and short.If we cant do this we are subconsciously at a disadvantage as our opinion on making profits will only be focused in one direction.Remember we react to moves both up and down and not just one direction.

Then we must make sure that our PC and communication links are up to scratch.There is nothing more frustrating than getting all the trading correct only to be let down at the most important time by your equipment.

A simple plan may be to buy or sell short at an important level with a stop 1 unit of price away with a reward of three price units.This gives each trade a risk reward of 3 to 1.We can see from this type of trading that if we took ten trades five could give us a possible profit of UP TO 15 units whilst our losses would definitely be 5 units.So we could be wrong 50% of the time and still make money.

However to make sure this worked we would have to ensure that our discipline took us out at our stop and we use a trailing stop on our profits as they progressed.It would therefore be advantageous if the software platform used allowed us to enter automatic stops and trailing stops triggered by the software to help us with the discipline in trading our plan.

Finally we need to keep our costs down and maybe consider using a system where we don't pay stamp duty and either the spreads are extremely close or we have the ability to not pay them as on my trading exchange the Nasdaq.

This is a personal view and not intended as any financial advice.
Thank you for some very useful advice. I would like to know which methods you use to short the UK market - I know this is a distasteful topic at the moment, but I would like to know how to go about it in the most effective way - as you mentioned it is a vital tool in normal circumstances.

Predicting equipment failure is almost impossible. I had a hard drive failure 11 days ago, which took me out of the market for almost a week. I had taken a weekly tape back up of my drive every Saturday assuming that I could restore this on to a replacement drive in the event of a failure- not so! My tape drive backed up the registry and system files too and still I had to put most of my data back manually. Not a good time to have been messing around inside my PC!
Let this be a lesson to everyone, or rather an opportunity to do it right.
I never use tape backup- it's a pointless,fruitless and time consuming excercise to "rebuild" a machine from tape.
Use either Norton Ghost or a second disk drive to create a MIRROR DRIVE. Hard drives are so cheap nowadays. A 5 gig mirrored backup would take 20 minutes or so ( while you have your tea) and can be used as an instant replacement for a "dead" drive.
I hope the knowledge of my experience of hard drive failure does benefit others and thank you for the advice.

Does this Mirror Drive programme give you a "bootable" disk? Do you simply have to then plug it in as the replacement "C" drive in the event of a failure?
Yes, you end up with a 100% clone of your "C" drive.This clone can then be connected as a primary master and off you go( since your last backup).
Only works for WIN95 and 98 though...It's not an option under win2K :(
If you want instructions, I'll post under "techies corner"
Hi Martin

Unfortunately I do use Windows 2000 Professional. What are my options now?


I apologise that this thread has moved away from the original topic.
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