Binary

Hi all,

I am afraid that my plan to take a month off job and focus only on dealing will not go ahead. I am so busy with clients, projects and running a business that i just can’t take one month off. Nice plan though.

I don’t even have much time to check the market on a daily basis. So I have to change my strategy.  So this is what I am going to do for the next trades: Support & Resistance with tight stop loss. The idea is to go with the market. Buy when the FTSE 100 hit a support with 25 points stop loss and sell when the FTSE 100 hit resistance with the same stop loss.

I know that I have said that I don’t like stop loss. And I don’t. But if you don’t have time to follow each tick of the index then you better use them. My plan is quite simple: I will have some losses no doubt, but one winning strike should cover them and create a nice profit.

So here is my order booking:

I will let you know what happen next…

I am going to take in mid June a month of work. First of all I need a break and to do something else. Second I want to feel how is it to be a ‘Real’ trader that eat and breath the market all day long.

My target in this month is quite ambitious to take £2000 and make them £20000. In other words I want to make 1000% in just one month. For doing that I will use 4 strategies:

1) Going with the trend – By using tight stop loss, try to ride on a daily trend. The idea is simple you may lose more trade than you win but those you win will generate big profit.

2) Over sold / over bought – try to guess where the market is going to change direction and then buying on the opposite direction. For example if on a day the market is going down strongly, I will try to understand where is the turning point and open a long position. With this strategy there is no stop loss and I limit the profit for 100 points on the Dow.

3) Entry point. Open a position, long or short it doesn’t mater without a stop loss and with profit limit of 100 points.

4) Buying an option. Buying an option that are close to the money and wait for it to double. For example if the Dax is 5000 then my plan is to buy the 4900 put

It will be interesting to see which method will generate more profit. I will keep you updated

I took advantage of the latest rally and sold all of my shares:
Tesco, Royal Dutch Shell, Dana petroleum and BAE.

I do feel that this current rally is more like wishful thinking than a real turning point. Yes the media has lost interest in the current recces ion and they are already looking for green shoots, but I honestly believe that the problems are still here. Central banks all over the world give free money (0% interest rate) and these was the reason why we had the global crises in the beginning. Money was very cheap in the last 6 years and it is very cheap now.

This will take inflation to rocket high and although it is very good to my mortgage is not very good for the economy. And I also feel that something has been changed with people. They don’t happy to spend as they used to. You see less people taking flights or buying new cars.

So I may be wrong and the rally will continue over the next month, but I feel that it is better for me to protect my profits and sit on the fence for a while.

Hi all,

I am not a big fan of stop loss. I think they make you lose money. So I don’t use them. But today I had sometime and I decided to use Worldspread offer of £250 cash back.

I saw the Dax up strongly today and I know that the 4950-4975 is the upper resistance at the moment. So I opened a position to sell the Dax on 4946 with 25 points stop loss – £10 a point.

At one point I was £150 up, but my target was £1000 or 100 points. But an hour later the Dax was strong again and peaked 4978. I was out. 2 hours later it was 4900… and the again it was up to 4975 and down again.

25 points stop loss is a joke. If you really serious about trading and you still want to use stop loss then use 200 points on Index like the Dax. Otherwise you will be out before you know it.

Hi all,

For long time I have a share account with Halifax Bank. Since I use spread betting I didn’t for long time. But I am keep coming back to the platform because they have very good research platform.

Today I wanted to check some things about Royal Dutch Shell and it is all there. Very easy to use and pleasant for the eyes. On top of that if you want to deal with shares they offer competitive rate of £11 per transaction. It is one of the cheapest in the market. Although you can find £6 as well depends on how much you deal per month.