Reply to: Anyone thinking of getting into spread betting

[Jog On]

Its is 99% likely you will lose money trading over the long term, if a group of PHD's from MIT blew up then what makes you think you can be successful? Trying to predict the markets movement which is the result lots of participants placing orders with varying motivations for trading is virtually impossible.

What were the facts behind this one? I read something about a group of PHDs doing a simulated trading experiment and nearly all of them lost because they bet so much that their accounts couldn't sustain losses. And who said having a PHD makes you a good trader?

Anyway - you all know everything already... I'm still learning!

[russell]

Its is 99% likely you will lose money trading over the long term, if a group of PHD's from MIT blew up then what makes you think you can be successful? Trying to predict the markets movement which is the result lots of participants placing orders with varying motivations for trading is virtually impossible.

[Jog On]

I presume you're doing so well following these rules that you're trading full time?
If only I was intelligent enough to see these patterns, I too could be a millionaire day trader like you.

It will be some time before I have an account size that will sustain comfortable living expenses after reinvesting 75% of gains back in.

Particularly only risking 2%/trade! I don't day trade I swing/position trade. Much less stressful.

[sasguru]

. Successful trading is down to having rules like these and following them.

I presume you're doing so well following these rules that you're trading full time?
If only I was intelligent enough to see these patterns, I too could be a millionaire day trader like you.

[Jog On]

I'm researching this tool

What is Autochartist | Autochartist

I'm also getting into Meta Trader 4 as a platform and you can use autochartist as a plugin.

I'll report back when I've made my next million.

Autochartist is provided by GFT who also provide spread betting via their Dealbook360 platform. They've just started using MT4 as well - about flipping time! If you use GFT you get autochartist included.

I got a demo from smart live markets as well but I prefer GFT as they have so many instruments available that most other brokers don't.

Spread betting strategies are no different to CFD strategies. It's the same data coming through the same charts. Just the mechanics and tax treatment are different as are the overnight charges.

If you don't want to lose all your money you could learn a bit about money management and position sizing. I don't risk more than 2% of my account on any single trade and will size my position based on where my stop loss is. If I get into a drawdown of 25% I have a cut off 'stop trading' rule. So the worst case scenario is that I lose 2% on any single trade and 25% of the account overall.

I trail my stops to reduce risk and lock in profits as well. Successful trading is down to having rules like these and following them.

[DimPrawn]

A fool and his (imaginary) money are easily parted.

I've made enough today to buy 1/2 a cheese sandwich, so fook orf!

[sasguru]

I'm researching this tool

What is Autochartist | Autochartist

I'm also getting into Meta Trader 4 as a platform and you can use autochartist as a plugin.

I'll report back when I've made my next million.

A fool and his (imaginary) money are easily parted.

[DimPrawn]

The trouble I have with this spread betting is that it seems to be a bit like betting on a roulette wheel.

Anyone have a "strategy" that actually makes money?

I'm researching this tool

What is Autochartist | Autochartist

I'm also getting into Meta Trader 4 as a platform and you can use autochartist as a plugin.

I'll report back when I've made my next million.

[ASB]

Quite possibly, but it doesn't mean that you are forced to close your position and lose money, and on the specific site that DP linked to there is no mention of expiry whatsoever they only mention overnight funding costs => they rollover automatically so you don't need to worry about it as long as you have enough money to meet the margin and overnight funding costs

That is also true, but it does mean the original position is closed and a new one with the same characteristics reopened. This does give the appearance of a continuous position.

Different providers do different things at expiry. IG index, for example, do not guarantee that they will honour roll over request (be they automatic or on demand).

[doodab]

Spreadbets HAVE to have an expiry, otherwise legally they are not bets.

Quite possibly, but it doesn't mean that you are forced to close your position and lose money, and on the specific site that DP linked to there is no mention of expiry whatsoever they only mention overnight funding costs => they rollover automatically so you don't need to worry about it as long as you have enough money to meet the margin and overnight funding costs

[suityou01]

Spreadbets HAVE to have an expiry, otherwise legally they are not bets.

[ASB]

Are those spreadbets or CFDs? They are different things. Of course if you are betting on futures they will expire because the underlying assets (i.e. futures contracts) expire as well.

Spreadbets HAVE to have an expiry, otherwise legally they are not bets.

[doodab]

Most spreadbets I've seen have a defined contract end, be it same day or many months into the future. I don't think they automatically roll over to a new contract.

Are those spreadbets or CFDs? They are different things. Of course if you are betting on futures they will expire because the underlying assets (i.e. futures contracts) expire as well.

[DimPrawn]

No, as long as you have enough money in your account to cover the loss + overnight financing charges you should be fine.

Most spreadbets I've seen have a defined contract end, be it same day or many months into the future. I don't think they automatically roll over to a new contract.

[doodab]

Does a spreadbet not have a time span? So at the end of trading you are 60K down.

No, as long as you have enough money in your account to cover the loss + overnight financing charges you should be fine.