Decided to try this Spreads and CFD's as an experiment, experience and alternative to the sweet 1.5% on offer with ISA's.
I had a strategy, still adjusting. I have a plan. But having no experience is a bit of a handicap. I detached myself from the money so it was no longer personal.
I have had enormous fun and learned more about the global economy in 4 months and 10 days than the 25 years I have been reading the economist, running a small property business or talking with my very cautious banking friends (all of whom advised me not to spread or trade CFD's ). Opened a demo account and a real one.
Despite being clobbered in the lumber markets ( attracted to the volatility) oil, gasoline and tracking the Dow have more than bailed me out.
Have I won every week? Not on your Nelly! Did I take it personally when trades did not work out due to impatience, greed or poor timing? To begin with yes. Patience and belief have become my friends, even if the belief has come down to **** minded instinct on occasion.
Result? A profit of 38% in real money and 25% including margin or 37.5% without in demo after 4 months. Too much information is worse than not enough so have taken what makes sense.
Have traded out of all my positions when Wall street hit 26671, with the exception of Calls on Wall street June 19 (26500), call on Footsie @6725 May and a call on June USD/GBP @1.3100. Still long on oil, though have regularly taken profits. Am still learning about calls and puts so will ride them out or cancel at close.
If one is to enter this with intention of it being one's sole income, then you will need at least £50k as your base and not be upset if you lose it all. Do not be obsessive about it either, remember to enjoy life. Don't take losses personally, see them as part of the process.
That's about all I can think to say on the subject for now. Save I am enjoying this far more than I imagined I would, but maybe that's because I am in profit.
