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Is spread betting for fools?

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Pahahahahhahahahah, Look at this!!!!!!!!!!

I wasn't studying the chart, just had a quick look on FTSE.  Been Dropping steadily since 10.20am.........

Figured a quick ride for £20...........4 pts.... Reversed lololololololol.


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You couldn't write this **** :D

 

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13 minutes ago, nit2wynit said:

Pahahahahhahahahah, Look at this!!!!!!!!!!

I wasn't studying the chart, just had a quick look on FTSE.  Been Dropping steadily since 10.20am.........

Figured a quick ride for £20...........4 pts.... Reversed lololololololol.


582667147_nowaylol.thumb.jpg.713efd3342819eedc0b1b32546465ebc.jpg
You couldn't write this **** :D

 

precision entry, it's gonna happen 😉  

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@nit2wynit,

I agree with your point about a strong stomach for losses. I would also add in your list a strong capital balance to start with in your trading account. With this you may allocate between 1% - 5% on any one trade depending on your risk management strategy. I know some traders who do not allocate any more than around 1% of their total trading capital on any one trade. As your trading capital grows then this 1% grows too. 

You state you left two trades open accidently. I know its only a demo but you should try and eliminate such events.

I do not use the demo account but I appreciate you wanting to know others win/loss ratio using the demo account. If anyone shares a superior win/loss ratio that what you have then you may be able to learn and fine tune your day trading strategy to improve performance. Every little bit helps. 

It is very nice of you to share your live trading with us. I am sure it is very appreciated by some of the IG Community. 👍

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38 minutes ago, nit2wynit said:


582667147_nowaylol.thumb.jpg.713efd3342819eedc0b1b32546465ebc.jpg

@nit2wynit, notice that big green volume bar under where u circled?  that was its warning sign to stay away and wait and see what happens. Should have brought when the Macd crossed and rode it all the way down.
When i day traded, i only had 1 chart open, the AUS200 index, and i just concentrated on riding the waves, in and out, with out switching between heaps of charts, just to keep my focus.
 

 

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1 minute ago, davidbrister said:

 

David, the Long Red Candle before the long green was my Buy In.  There was No green.  In fact the MACD spread further apart, so I anticipated a further drop.

Then the Green Candle and full reversal.

I let it fail for the full 10pt stop.  -£50.

I'll get it back later today. Europe market very slow this morning.  US should bring some rewards. :D


 

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The Absolute Greatest Obstacle with IG (not specifically) and Spread Betting, especially on the Basic Retail Platform, is the sheer frustration and general Working Against You fundamental limitation of the ability to Search and Filter the Instruments by Price, %, Spread Size, or Even Open Markets.  Phone only.  Only available to close etc. etc.  Thousands of stocks in order of Alphabetical Order only.  

The Retail Platform is set up for Gamblers, not Fools.  Gamblers who just need to place a Bet, to get a Fix.

For the last hour, I've searched the entire European Market for anything that has moved in either 5% or more or 50pts or more.  I must click Every Single share only to find it's a 50pts spread, Only available by Phone, or Not available to Short.............................Tedious. 

It's designed to get you to Sub to Pro Real Time!!!

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9 minutes ago, nit2wynit said:

The Absolute Greatest Obstacle with IG (not specifically) and Spread Betting, especially on the Basic Retail Platform, is the sheer frustration and general Working Against You fundamental limitation of the ability to Search and Filter the Instruments by Price, %, Spread Size, or Even Open Markets.  Phone only.  Only available to close etc. etc.  Thousands of stocks in order of Alphabetical Order only.  

The Retail Platform is set up for Gamblers, not Fools.  Gamblers who just need to place a Bet, to get a Fix.

For the last hour, I've searched the entire European Market for anything that has moved in either 5% or more or 50pts or more.  I must click Every Single share only to find it's a 50pts spread, Only available by Phone, or Not available to Short.............................Tedious. 

It's designed to get you to Sub to Pro Real Time!!!

Agreed - I find "available by Phone, or Not available to Trade" its SO frustrating!

IG sometimes locks you out of trades when it knows the stocks are likely to be very liquid/volatile (and popular) and therefore forcing to to miss a scalping trade.

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Posted (edited)

Right peeps, I'm done for today.  All Trades below with a simulated 2k account using Maximum Margin.  1 trade at a time.

@dmedin we know it's the Demo, we know the risk, we know the Psychology is not the same.  The hardest part is finding decent setups to focus on.  Made 2 mistakes today.  The FTSE failed immediately so should have got out for -£15.  The Nutanix -£50 was a stupid mistake of not adjusting Stop Loss quick enough.

Have a great weekend folks.  Back on it next week.

1940565192_perfectday.thumb.jpg.44f4583b8441b11dbd5e82d4fcf3c754.jpg

Edited by nit2wynit
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@nit2wynit,

Why not try trading as if it were a real account and apply the same stop loss strategy as you would in a live account?

Otherwise the information you are obtaining about your trading via the demo account will not reflect your trading via the live account information. 

Ideally, what you want to do is apply your trading strategy as you would in the live account on the demo account and really test its robustness. If there are any issues then you have the opportunity to fine tune it before you go live.

Just out of interest, what are the strongest trending shares at the moment? Of these which are the most liquid shares at the moment? Of these which have the highest volatility? Once you get the answer to these questions then may identify some very interesting shares to day trade for you. 👍

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35 minutes ago, TrendFollower said:

@nit2wynit,

Why not try trading as if it were a real account and apply the same stop loss strategy as you would in a live account?

Otherwise the information you are obtaining about your trading via the demo account will not reflect your trading via the live account information. 

Ideally, what you want to do is apply your trading strategy as you would in the live account on the demo account and really test its robustness. If there are any issues then you have the opportunity to fine tune it before you go live.

Just out of interest, what are the strongest trending shares at the moment? Of these which are the most liquid shares at the moment? Of these which have the highest volatility? Once you get the answer to these questions then may identify some very interesting shares to day trade for you. 👍

Yes this is what I will be doing next week.  What's more important to me is the Profit Loss ratio and not the amounts.  It would be foolish no .after how much I have to put 340 down to cover a Spread Bet.  It would clearly make more sense to buy and sell the shares instead of risking an immediate 340 on a trade.

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@TrendFollower I do use the same stop Loss strategy.  1:1.  I risk what I hope to take.  What will be different is the Stake itself.  My exercises to date are to show what is possible and to prove how many times i may be reading the charts correctly.  My learning and testing is happening in stages.

We'll see where I am by the end of the summer.

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i practiced on the demo for almost 12 months before my wife would let me play with real money, lol. i wish i had started using the live account sooner, as i built up a very strong demo account and thought i had this nutted out only to be raped in my first few days of live trading, it was bind blowing to say the least, and the biggest thing i learned is that the fear factor is almost zero using the demo, but the moment it becomes real wow total different set of emotions come into play. 

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This is a good article, 20 questions you need to be able to answer;

20 Questions For Help Building a Trading Plan

System

  1. What type of trader will I be? Swing, trend trader, trend follower, day trader, Elliot Wave, Fibonacci, CAN SLIM, option trader, another, or a combination?
  2. What time frame will I be trading on?
  3. What are my trading rules?
  4. What signals my entry?
  5. What will signal my exit?
  6. Do I use a trailing stop or a price target to lock in profits?
  7. What will I be trading?
  8. Will I trade long or short or both?
  9. What is the probability of my trade working out based on historical data?
  10. What has to happen to invalidate my trading system and make me look for flaws in my thinking?

Psychology

  1. How big of a position size can I mentally and emotionally handle trading?
  2. Does my chosen trading method fit my personality for activity and risk tolerance?
  3. Do I truly believe that my method will work and be profitable?
  4. Do I enjoy trading?
  5. Do I have the mental strength to persevere until successful in trading?

Risk

  1. How much of my trading capital will I risk per trade?
  2. How many losses in a row with this level of risk will lead to blowing up my trading account?
  3. How much will I lose at one time if all my open positions go against me at the same time?
  4. How correlated with each other are all your open positions and your potential trading vehicles that are on your watch list?
  5. Do you fully understand the potential risk in what you are trading?

http://www.newtraderu.com/2014/01/07/6072/

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In my experience, day trading is the quickest and easiest way to lose a LOT of money.  :)

 

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It certainly IS the quickest way to lose money, and also the quickest way to make it.  Lost this one though.

Lesson learned.  Stop Loss MUST cover Spread :D  5pt on this one.  Missed that.  Hit this 5pts early and reversed.

 

 

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I'm still losing money hand over fist with 'day trading'.

What a load of utter nonsense ... I guess it really IS for fools! :D

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2 hours ago, nit2wynit said:

It certainly IS the quickest way to lose money, and also the quickest way to make it.  Lost this one though.
 

 

You reckon you could make a living out of something this risky?  It all sounds a lot like BS to me.

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@dmedin providing I can keep my head on straight and handle the Fear, then sure.  I've no doubt.

I can consistently make profit on the demo.  I'm not really sure why people have such a hangup about it, other than what i have previously noted.  People think I'm using the Full amount and making profit is easy, but I use only 2k per time.

Why do you think you're struggling so much with it?
It's only risky if you're guessing.  1:1 Profit loss ratio.  Look for moves that are about 10-20 stops or more and take a few as it goes up or down.  Don't try and beat the breakouts.

I've obviously been following your posts.  This one especially, but you seem to have overdone you TA reading.  I look at the charts.  That's it.  I don't care for much else, unless there is News to accompany the trade.

I think you need a fresh education on it.

Don't get me wrong, I Lost today.  Technically I'm up, but then lost most of it.  It happens.  I'll be back on it tomorrow.

 I've turned on 'One Click' and accidentally closed the 1st trade but went straight back in for +£82.  Not the first time I've done this!

Total Profit today WOULD have been had I not closed the trade and only let the -£76 run to -£40  =+£90

If all anyone can say is, But it's the Demo, it's not real........then there's little else to talk about.

If I can master the Fear, then the strategy is working.

This will be the ultimate test moving forward.
 

Monday blues.jpg

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13 hours ago, Caseynotes said:

This is a good article, 20 questions you need to be able to answer;

20 Questions For Help Building a Trading Plan

System

  1. What type of trader will I be? Swing, trend trader, trend follower, day trader, Elliot Wave, Fibonacci, CAN SLIM, option trader, another, or a combination?
  2. What time frame will I be trading on?
  3. What are my trading rules?
  4. What signals my entry?
  5. What will signal my exit?
  6. Do I use a trailing stop or a price target to lock in profits?
  7. What will I be trading?
  8. Will I trade long or short or both?
  9. What is the probability of my trade working out based on historical data?
  10. What has to happen to invalidate my trading system and make me look for flaws in my thinking?

Psychology

  1. How big of a position size can I mentally and emotionally handle trading?
  2. Does my chosen trading method fit my personality for activity and risk tolerance?
  3. Do I truly believe that my method will work and be profitable?
  4. Do I enjoy trading?
  5. Do I have the mental strength to persevere until successful in trading?

Risk

  1. How much of my trading capital will I risk per trade?
  2. How many losses in a row with this level of risk will lead to blowing up my trading account?
  3. How much will I lose at one time if all my open positions go against me at the same time?
  4. How correlated with each other are all your open positions and your potential trading vehicles that are on your watch list?
  5. Do you fully understand the potential risk in what you are trading?

http://www.newtraderu.com/2014/01/07/6072/

Though the need for a trading plan and a trading strategy coupled with good basic money management has been repeated in near every trading book ever written since the dawn of time few actually seem to follow this advice.

The probable reason is likely because few seem to really understand what they are and so just repeat the mantra without actually doing it.

The strategy is the simple set of rules that govern every trade. The set up, the entry, managing the trade and then the exit. The same set of rules applied to every trade. You know what's going to happen before you even pull the trigger (you are going to follow the strategy's rules). You might have one, two or perhaps three different strategies but that should be your limit as a new trader. You know the strategy works because you have tested it, that's why you stick to the rules. 

The plan seeks to highlight before hand when and where one of your strategies might start setting up so it will consider chart structure, trends, levels, news events, when you need to be ready or resting, etc.

Without the construction and appliance of a tested scientific model you will just be shooting from the hip at shadows.  

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@Caseynotes by far a great example of what is needed.

Ironically, this is my Page 1.  However, the Psych is still in development.

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5 hours ago, nit2wynit said:

@Caseynotes by far a great example of what is needed.

Ironically, this is my Page 1.  However, the Psych is still in development.

But this @nit2wynit is how you bring it full circle. You can't know the outcome of any single trade when you enter, you know that every trade won't be profitable but because you have tested your strategy and know that over 50 trades the strategy is profitable, the fear factor disappears. The only problem left then is making sure you always stick to the rules.

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Yes, Indeed, and I'm sure i will lose more to come.

However, this is this morning. :D  The sun is shining so I'll go play in the garden.

@dmedin  Check this setup.  News yesterday about Airlines being affected by Brexit.  Check Also RyanAir and EasyJet!  I got 3 drops on this yesterday and this big one this morning.  2k account.  Maximum Margin.  It can be done, 
1397110362_itspossible3.thumb.jpg.51087a134e76cee7243010d26918771d.jpg
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994733917_itspossible2.jpg.b3b4a255b5a30cb1fea696c3ada30298.jpg
 

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Sorry got my Instruments wrong.  Lost £41 on this yesterday. :D
 

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Check this out.  Perfect setup.  Waited for the drop to go past support.  Stop loss at resistance.  This baby dropped for a quick £40.  I've not had breakfast yet and usually only start after US open, but if it's there, it's there.

1367625374_greatsetup.thumb.jpg.3d78da019433c6e9c5fdd36a45bdc658.jpg

797678459_inout.thumb.jpg.0835a93cf0086a42a396b3bdbccb6d3d.jpg

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This is the same chart setup @dmedin but look where it is now, between support and resistance.  In the past I'd anticipate the drop or rise only for it to reverse.  FOMO would get me.

I'll not touch this now till it's either at the top or bottom of my lines, then wait for a new line to be created.  It could still take my profit back though.
1689813238_SuppResist.thumb.jpg.342c18c8afdcb9ffa6f71fd614ee2c2e.jpg

 

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Dammit.  Another immediate stop out because of the large spread on this.  I placed an Order at 8730, but it activated 15pts away so immediately stopped me out for -£40.  

81333629_EarlyOrder.thumb.jpg.5924485b08407fad9af1b56bfb8cbfb5.jpg

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Well...................Somehow on this stock the Spread changed from 15pt to 25!!!!!!!!!!!!!!!!!!!!!!!!

Anyone shed any light on this???  Down £120 on my profits today.

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Right folks, probably close to my Posting Limit for today.

Her'es an update I wasn't aware of.

The Spread can change by the Tick at anytime without notice.

Trading the Instrument above.  I'm pretty certain I started with a 5pt spread.  then it went to £15, then to £25.  I didn't even notice till it went to £25 and got stopped out twice..........

What a **** joke and a con this platform is.  How can you justify going from £5 to £25 without notice??


Jeeeeez.  Still learning.

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4 minutes ago, nit2wynit said:

Right folks, probably close to my Posting Limit for today.

Her'es an update I wasn't aware of.

The Spread can change by the Tick at anytime without notice.

Trading the Instrument above.  I'm pretty certain I started with a 5pt spread.  then it went to £15, then to £25.  I didn't even notice till it went to £25 and got stopped out twice..........

What a **** joke and a con this platform is.  How can you justify going from £5 to £25 without notice??


Jeeeeez.  Still learning.

The spreads have always been variable and depend on current market volatility and liquidity which are reflected in the prices available to IG. That's the price of  having a continuous market to trade as opposed to getting 'stuck' with an asset.  

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Yeah fair enough.  It's in the Small Print, maybe it's not even that small, but to go on the fly from 5 to 25.......Dangerous.  I'll need to go back to March to see if I had changing Spread then too.  Been using this platform since then and had No Idea the Spread could change so dramatically.

Each day I see more and more reason to stay Clear of SB and simply go to Share dealing directly.

However, all that said, I've learned a very important lesson today.

 

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