Trend v Swing Trading

Swing Trading v Trend TradingWell I certainly caused a bit of a stir in my last post. For those of you that have not read it the post was about Staying out of the market in times of great volatility.

Now, it was not the topic that ruffled a few feathers (in fact it is common sense) but the challenge I set by the line ” I defy anyone to tell me their spread betting system is still working at this time”.

Of course some bright sparks have told me how they have used swing trading strategies to get large point gains.

When in Doubt Stay Out

Up or Down Spread BettingAs the old Wall Street adage goes, When in Doubt Stay Out, as true today as it was way back at the turn of the last century.

This week has been madness. 600 point swings on the DOW, one minute up, next minute down, I defy anyone to tell me their spread betting system is still working at this time.

This is a time to lose money, lots of it. You may be lucky and get on the right side of an upsurge/downsurge call but I bet its not through technical analysis and your stop losses are probably in the thousand point  area.

Stick to Your Spread Bet Rules

Spread Betting MistakesI have a great example of why, once you have a proven spread betting system and rules to follow you should stick to them no matter what.

If you read my post a few days ago about my Adobe short you would see I made 3 mistakes by not following my simple rules and subsequently missed out on another 200 point gain.

ADOBE – Spread bet closed

Adobe Spread BetI have decided to close out my short on Adobe (ADBE) for a week or two.

Although I think the overall trend will still go down I have noticed that that Adobe has twice rebounded for a week or 2 following a large drop.

Obviously it may not pan out that way and could still continue to drop but I set out to make 400-500 points spread bet  and am very happy to close and wait until the next market move. If it goes up I will have banked my profit, if it goes down I may enter back in but bearing in mind that their is some support around the 2600 mark.

Correct Call on FTSE 100

Spread Betting FTSE CorrectIts funny how charts have a habit of showing you potential corrections in the market.

Take a look back at the post I made last week about a rebound on the FTSE 100.

This is the link – Do We Short The FTSE yet?

Here is the chart I posted last week

Adobe Short Spread Bet

Adobe Spread BetI have been looking at ADOBE (NASDAQ: ADBE) for a few weeks now for a potential short. I have had 4 sell signals (I know that if I acted on the first one I would be 500 points up already but I don’t work like that, I like to see a trend first) and I will be looking to take a position today.

Look at this chart.

Do We Short the FTSE Yet?

Short the FTSE in Spread betThis is a question I have been asking myself for the last month.

I have had 3 sell signals (circles on chart below) on the FTSE100 BUT I am still not convinced that it is in a long term decline yet.

In fact, I was looking at the recent chart and found an argument for quite the opposite. The FTSE 100 could be going up!!!

Spread Trading Market Update

ftse spread bettingWhat is going on with the markets this week?

They are extremely volatile, especially the FTSE and the DOW.

First they are down with worries over the Greece situation, then they are up when the Greek government gets a vote of confidence.

Alcoa Short

Spread Betting AlcoaI am currently watching Alcoa (NYSE: AA) that has given me 4 sell signals in the last month.

Obviously I will not divulge how my system indicates a sell signal but I will say that there are 4 and they are strong.

I am still in a very bearish mood on the NYSE (in fact all markets) and feel it can turn any day so I think that the only positions i will take are shorts.

Stop Orders IMPORTANT

Seb Says Spread BettingStop Orders are the most important element that I use when Spread Betting.

If you read my Risks and Benefits post you will understand that I never enter a trade without first working out the what my maximum risk on that trade will be.

Stop Orders (or Stop Losses as they are also called) allow you to walk away from a losing trade knowing the maximum amount you could lose.

Risks and Benefits

Seb Says Spread BettingIt is very important to understand the risks that you are exposed to in spread betting.

Most people starting out get excited and only think of the benefits.

Listed below are what I see as the Risks and Benefits of Spread trading.

What are the risks?

Spread betting explained

Seb Says Spread BettingA question I have been asked many times by friends and family is what exactly is spread betting.

My simple answer is, well you know if you buy a stock and it goes up then you sell it you earn money. Well spread betting allows you to benefit by that move without actually buying the stock and as such avoid the implications of tax (both stamp duty and income tax), tying up large amounts of your capital and broker commissions.

Spread Betting – Welcome

Welcome to Seb’s Spread Betting. I created this site to document my trials and tribulations in the world of spreadbetting (or Spread Trading as I like to call it.)

In the coming months I will be listing what trades I am watching, what trades I have placed, what trades I have closed, how successful or not those trades were along with all kinds of other spread betting information that I think will help me.

IMPORTANT
The posts I make are in no way meant as investment suggestions or recommendations to any visitors to the site. They are simply my views on the markets and what trades I am placing myself. Anyone who wishes to Spread Bet should rely on their own due diligence and common sense before placing any spread trade.

As I already stated I prefer to call Spread Betting by the name Spread Trading. Spread Trading is as much betting as any other form of trading. Stocks, Forex, Indices, ETFs, CFDs, Commodities etc are all risky if you do not have a successful system that is proven to work over time, they are all betting.

Although in the UK (at the moment) it serves us well that it is classified as betting as that means ANY profit is TAX FREE!!!

I hope you like the site. Keep coming back to see how I get on, will I do well or crash and burn? Who knows, hopefully with the right Spread Betting system in place I will be posting here for years.

Seb.

Hosting support by iPage - Designed by Web Hosting Secret Revealed