Sucessful Profitable Spreadbetting - The way I do it

hotbaz

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Hello

I am new to this forum and have read many posts with great interest, but thought it was time to put my personally comments about Spread betting.
It seems that you all require some success stories of profitable SP. I am not one of these.
I have been doing this on and off for over 10 years. Sometimes made big, but always lost out.

But recently my business collapsed so I had time on my hands - It was hard to get a job with my expertise (IT Systems developer) in the area I lived in so I needed to do something.

I scraped together £400 and went back into Spread betting using the CMC System. First let me say - I find this system excellent and is one of the best around. I now make a full time living from it making an average of £200 a day from it (still using the same £400 capital).

I keep promising to teach myself technical analysis, but never get round to it - I have sort of adopted my own method of reading charts.

If I was giving tips I would:-

a) Stay reasonably knowledgeable about the daily news.

b) Limit the number of instruments you trade with - I only trade UK100, US30 and German Indices and occasional Bent Crude Oil if I feel good about them - and that’s it.

c) Know the economic daily calendar - This way you will which events/news will move the market and approx at what times. So will see short term trend lines appears before and after each economical calendar event - like Non-farm payrolls and trade deficit balances etc

d) I only trade at £1 or £2 a point. Any bigger then the psychology of it all changes and you will panic more. I have proven this many times.

e) Always have stop loss positions on each - I always set around a 30pt stop loss and stop out early.

f) I try not to have positions open when I am busy doing other things - to many opportunities can me missed. The other day I took my family to the cinema - I missed the important 1:30 USD Initial Jobless Claims report - as a result i missed out on some big intraday profits as there were large swings.

g) Not everyone recommends this - but I watch the screen and if I feel the trend changing I back out and take any profits and then back in again in the other direction.

h) Do not be greedy, otherwise you will lose. Set the daily minimum amount you want to make and try and stick to it. On Friday I had may £243 by 9am in the morning - that was enough for the day - spent the rest of the day gardening and deep waxing the car.

i) If the first in/out trades are bad - i quit early that day, as I feel the rest of the day might be like that.

j) When you profit from a trade - take the money straight out (this is easy using the CMC system) so that you are back to your initial capital.

I am sure there are more, but these are just some simple rules I set myself. I basically trade trend lines - if its going UP then ride it up, if its going down,then ride it down - After a time you will feel when its running out of steam with direction. This is the time to exit. I can be in and out of trades several times an hour.

MAINLY STAY FOCUSED!
 
Most refreshing.
You must have some insider knowledge / prop trader experience.

You can make a few bob selling top tips rather than giving them away! And for that I salute you
 
I agree - refreshing, encouraging, contradicts some accepted wisdom, acknowledges the psychological risks and most importantly you're doing it profitably.
 
So you regularly clear £200 a day from £1- £2 bets- seems very hard to beleive.

You've indiacted that your stop is around 30 points away - could i ask what your TP is and what your % of winning/losing trades are?
 
b) Limit the number of instruments you trade with - I only trade UK100, US30 and German Indices and occasional Bent Crude Oil if I feel good about them - and that’s it.

d) I only trade at £1 or £2 a point. Any bigger then the psychology of it all changes and you will panic more. I have proven this many times.


MAINLY STAY FOCUSED!

Wow, you made 120 - 240 points by 09:00 on Friday - that's very good, in fact it's positively exceptional - especially as none of them had moved more than about 20 points by 09:00. Perhaps Gay Crude Oil was the one getting all the action.
 
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Anyone consistently making £200 per day using £400 capital and £1 or £2 per point bets could easily scale up and become stupendously rich very quickly. So why hang around with all us T2W loosers?

PS. By the 'CMC System' do you mean the spreadbet provider, or is it your strategy?
 
Yup - in fact, this is THE perfect formula.

Own proprietary chart reading method/trading technique - THE SECRET!
Only working half the day - allure of little effort
Being able to make a living from a starting capital of 400 quid - cast the net wide.

The only flaw I see here is that the OP fails to understand there's plenty of people out there that couldn't actually live on 200 quid a day.

I say re-word it, start with 1000 quid capital and say you make 500 quid a day.
 
So far not a single 'wonderful' trader managed to back their claims with live calls (so far as I'm aware).

Hotbaz, why don't you try to be the first one to do it?:)

Posting live calls is one thing.

Posting live calls after announcing how hot you are - well, that's another thing entirely.
 
£200 a day is around £50k a year.. this is more than enough to live on surely?
 
Here we go again. No sooner have we seen through Taffie the prop trader than we have 100 points a day part time spreadbetter.

Hotbaz, I'd advise you give it up now, the outcome is going to rather embarrassing for you.
 
pboyles - give the guy a break. jeez.

Every single one of these guys that are telling us how successful they are have turned out to be scam vendors. How do you think this is going to end up?

50% before breakfast time? What a load of crap.
 
Ok, first I'm in the car waiting for my wife shopping so I'll answer a couple of points via my iPhone. Yes I had made 200+ points by 9am - this Is because I had opened a us30 position which by early morning had dropped some 45 plus points by 6am - I then opened a position a position of 1pt with the hong long index just into its 2nd of the day trading which earnt me another 60 points for 10 mins of watching the trend line . I also early opened a uk100 and German position just after each of them went live 7 and 8 am for 10 mins uk 2 points and German 1 pt - made a good 70 on this. All because I had read the Bloomberg news early in the morning about the Chinese not hitting there trade estimates

Hope that makes sense
 
Every single one of these guys that are telling us how successful they are have turned out to be scam vendors. How do you think this is going to end up?

50% before breakfast time? What a load of crap.

Firstly, i am sceptical of certain posters also - i think its quite transparent - easy to tell genuine people from not.

How do you know they have turned out to be scam vendors? could you point me in the right direction to see this?

I dont have the nerve to trade pre market, but i have noticed on several occasions lots of movement on the FTSE pre market, and in hindsight i could have made a nice little number if i did trade it.

Im no expert, but i have also made lots of money on spreadbetting the FTSE - however i let myself down in terms of discipline, so my profit isnt as good as it should have been, but im still up.

Have you never made a profit on spreadbetting?
 
There are numerous examples. A guy called Jacko at forexfactory was providing free advice and then took money off people for a managed account and disappeared with it. There was some guy called Llewelyn trying it on here yesterday, offering free advice as an ex prop trader with 8 years experience. Turned out he was a purveyor of get rich quick schemes and had only been at a prop firm (in Wales) for 6 months.

Believe me these guys only come here to set up a few gullible people for a fleecing.
 
Regarding the upscale and make stupid profits - this is why the bigger the capital and points you bet the more chance of losing out. The psychology kicks in - you will take smaller profits yet get protective about any losses (hoping they will reverse ) . I'm not a phychologist though my wife is - I just had many years of painful losses - one thing I have learnt is doing it full time works for me even if I only 2-3 hours in a day - markets have been quite volatile so there has been plenty of up and down trend lines to make off.

Some times I place limit orders, with stop loss and take profit limits set - this is great when major announcements are made - I place the trade literally 30 secs before anniv enemy on the direction i think it will move - you can normally have a good indication of this an hour leading up to it.

The on the announcement there can be swift movement resulting in a buy and sell with seconds automatically

I admit though I sometimes take profit too early - but that's better than nothing.

My last 15 trading day; 14 up 1 down - biggest gain for a day £310 lowest -£29 average around £190

Not trying to boost just trying to put faith in that it's perfectly possible to make a descent living from doing this.
 
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