I would love to know your spread betting or trading experience.
I will share some of my mine:
1) Never use spread betting for scalping with tighter stops.
2) When putting stop-loss going into earning reports, do not just put stop loss but put guaranteed stop loss level. Any gap down can wipe your account or reduce your trading account massively.
3) It is better to take consecutive small losses than regret later for a large loss. A 50% wipedown would mean you will need 100% gain on the next position.
4) Always let the trade come to you so do not rush to a trade. Maybe create price alerts so when a particular price hits you can decide to take the position. Check support or resistance level but the ultimate guide is the actual price action.
5) Price come before news, and not the other way around. Do not trust what you read about the market. Observe the price action, and then decide.
6) They say trend is friend, but in my experience the best risk to reward ratio comes on trend reversal. But finding a trend reversal sometime means a lot of small losses. But eventually with proper risk management one big winner pay for all the losers and then some.
7) When spreadbetting, do not just use stop loss but use guaranteed stop loss - it would mean paying a little extra when you are stop-loss level is hit but it is also peaceful to know that the maximum loss on a particular position.
8) Never become cocky, be fearful, be paranoid. It will keep you grounded.
9) Accept losses are part of the game. do not try to do revenge trading. (I am still to master this...)
10) Do not just trade for the love of profit, but enjoy the process of trading.
my two cents...
regards,
bhupe
I will share some of my mine:
1) Never use spread betting for scalping with tighter stops.
2) When putting stop-loss going into earning reports, do not just put stop loss but put guaranteed stop loss level. Any gap down can wipe your account or reduce your trading account massively.
3) It is better to take consecutive small losses than regret later for a large loss. A 50% wipedown would mean you will need 100% gain on the next position.
4) Always let the trade come to you so do not rush to a trade. Maybe create price alerts so when a particular price hits you can decide to take the position. Check support or resistance level but the ultimate guide is the actual price action.
5) Price come before news, and not the other way around. Do not trust what you read about the market. Observe the price action, and then decide.
6) They say trend is friend, but in my experience the best risk to reward ratio comes on trend reversal. But finding a trend reversal sometime means a lot of small losses. But eventually with proper risk management one big winner pay for all the losers and then some.
7) When spreadbetting, do not just use stop loss but use guaranteed stop loss - it would mean paying a little extra when you are stop-loss level is hit but it is also peaceful to know that the maximum loss on a particular position.
8) Never become cocky, be fearful, be paranoid. It will keep you grounded.
9) Accept losses are part of the game. do not try to do revenge trading. (I am still to master this...)
10) Do not just trade for the love of profit, but enjoy the process of trading.
my two cents...
regards,
bhupe
