Spread betting as a full time occupation...
Discussion
NorthernBoy said:
ringram said:
Still if it wasn't for the stop I would have hit what I was aiming at. The market had to trade higher today. (I said to myself)
Coulda shoulda woulda...Bad, bad things to start telling yourself. The trade lost, that's pretty much all there is to it. You've posted that had it not, you'd have made money.
Well yes, yes it would. Had it done what you wanted, it would make a profit.
They all do.
And edited to add, I'm not being facetious, this is a serious point; don't start telling yourself that you were nearly right, on trades when you lost. On the next one, you might have a wider stop, and then just watch it trend down to hit it. Will you tell yourself then that you'd have been better with a closer stop?
You can always say afterwards what you should have done differently. Unless the market is going to do the same next time, it's not much use.
Playing with fire needs much caution. I think Ill stick to physical trades. I dont have TBTF status
ringram said:
Dont worry mate, Im under no delusion. I fully accept that it could well have gone the other way and the stop limited my losses.
Playing with fire needs much caution. I think Ill stick to physical trades. I dont have TBTF status
Don't forget that the risk between physical and OTC is no different. It is the leverage that increases the risk and that is entirely in the hands of the client.Playing with fire needs much caution. I think Ill stick to physical trades. I dont have TBTF status
The most common mistake is for someone who allways does a £10k equity trade on physical to switch to OTC and instead of trading a £10k position, use the leverage available to trade a £50k position, thus instantly increasing risk 5 fold.
If trading UK equities you have to do so OTC otherwise the stamp on the physical will kill you. If you are investing then OTCs are wrong because of the funding element. The switch is usally around 30 days.
As well as over gearing another issue is that punters will tend to trade illiquid equities and fail to understand that even OTCs are laid off 1 for 1 in the underlying market so you are wholly reliant on physical liquidity. What people also don't appreciate is that the exchanges and MMs see the OTC bookmakers as a competitor for liquidity and so will tend to give crap fills. This is why DMA on OTC equities is the smart way forward and if dealing small cap then ensure access to the RSPs and don't deal in size, always trade within NMS or you'll get nailed on the close.
To be honest my view is that people are very wrong to use OTCs for small cap equities. It is abusing the facility and only ends in wipe outs for 99%.
If you are trading commods or indices then the OTCs hold the major advantage of vastly smaller margin requirements on contracts, but you are much more at the risk of the pricing stability of the bookmaker on these markets and far more liable for slippage. The more the bookmaker is running on their book then the greater the risk of slippage and pricing instability, especially amongst the brokers who lack critical mass to hedge internally on client vols.
You make a valid point about liquidity, it nevers ceases to amaze me how journalists of all types will comment on a share and how much its risen since their tip but neglect to mention that XYZ PLC or whatever has no volume so the 1st punter who buys it then effectively creates a rise in shareprice.
Better stick to bigger FTSE250 stocks at least you can get out
Better stick to bigger FTSE250 stocks at least you can get out
DonkeyApple said:
Don't forget that the risk between physical and OTC is no different. It is the leverage that increases the risk and that is entirely in the hands of the client.
The most common mistake is for someone who allways does a £10k equity trade on physical to switch to OTC and instead of trading a £10k position, use the leverage available to trade a £50k position, thus instantly increasing risk 5 fold.
If trading UK equities you have to do so OTC otherwise the stamp on the physical will kill you. If you are investing then OTCs are wrong because of the funding element. The switch is usally around 30 days.
As well as over gearing another issue is that punters will tend to trade illiquid equities and fail to understand that even OTCs are laid off 1 for 1 in the underlying market so you are wholly reliant on physical liquidity. What people also don't appreciate is that the exchanges and MMs see the OTC bookmakers as a competitor for liquidity and so will tend to give crap fills. This is why DMA on OTC equities is the smart way forward and if dealing small cap then ensure access to the RSPs and don't deal in size, always trade within NMS or you'll get nailed on the close.
To be honest my view is that people are very wrong to use OTCs for small cap equities. It is abusing the facility and only ends in wipe outs for 99%.
If you are trading commods or indices then the OTCs hold the major advantage of vastly smaller margin requirements on contracts, but you are much more at the risk of the pricing stability of the bookmaker on these markets and far more liable for slippage. The more the bookmaker is running on their book then the greater the risk of slippage and pricing instability, especially amongst the brokers who lack critical mass to hedge internally on client vols.
The most common mistake is for someone who allways does a £10k equity trade on physical to switch to OTC and instead of trading a £10k position, use the leverage available to trade a £50k position, thus instantly increasing risk 5 fold.
If trading UK equities you have to do so OTC otherwise the stamp on the physical will kill you. If you are investing then OTCs are wrong because of the funding element. The switch is usally around 30 days.
As well as over gearing another issue is that punters will tend to trade illiquid equities and fail to understand that even OTCs are laid off 1 for 1 in the underlying market so you are wholly reliant on physical liquidity. What people also don't appreciate is that the exchanges and MMs see the OTC bookmakers as a competitor for liquidity and so will tend to give crap fills. This is why DMA on OTC equities is the smart way forward and if dealing small cap then ensure access to the RSPs and don't deal in size, always trade within NMS or you'll get nailed on the close.
To be honest my view is that people are very wrong to use OTCs for small cap equities. It is abusing the facility and only ends in wipe outs for 99%.
If you are trading commods or indices then the OTCs hold the major advantage of vastly smaller margin requirements on contracts, but you are much more at the risk of the pricing stability of the bookmaker on these markets and far more liable for slippage. The more the bookmaker is running on their book then the greater the risk of slippage and pricing instability, especially amongst the brokers who lack critical mass to hedge internally on client vols.
Nice tips. I traded the ftse index for the volume/liquidity angle. I have an AIM physical and its very low volume. But my physicals are long term holds. (ie) Years.
Ill probably have another go as Im confident it can/does work, I just need to take smaller steps so the cost of learning is lower. Though in effect my loss bought a lot of knowledge.
Ill probably have another go as Im confident it can/does work, I just need to take smaller steps so the cost of learning is lower. Though in effect my loss bought a lot of knowledge.
ringram said:
Dont worry mate, Im under no delusion. I fully accept that it could well have gone the other way and the stop limited my losses.
Playing with fire needs much caution. I think Ill stick to physical trades. I dont have TBTF status
I'd also advise that you make sure that you accurately track what you put into your trading account ,and what you take out. I've known far too many people who genuinely believed that they were making a profit trading, but who strangely seemed to be forever topping up their margin account.Playing with fire needs much caution. I think Ill stick to physical trades. I dont have TBTF status
thought I'd resurrect a very old thread, any one still involved, any horror stories, anyone on a yacht yet? I trade in between work some days and do ok, some days better than others. Certainly an interesting subject anyway and enjoyed this thread a while back.
For example - is Dubais strategy still working/selling?
For example - is Dubais strategy still working/selling?
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