|
|
|
|
Since adopting a longer term strategy in February 2007, I thought I'd make a log of the trades.
Depending whether you trade SPI Futures contracts or use Spread Betting to trade, you will have to allow for dealing costs or betting spreads in the numbers below as the 'Total Points Profit' is the 'market open' to 'market close' number of points.
Don't fall into the trap of looking at a good month, multiplying the 'Total Points Profit' by a large number of SPI contracts, coming up with a huge number and thinking you're about to make a fortune. That's not the way it works.
My aim is to make 100 points per month. That's about 25 points per week, allowing 4 weeks off a year for holidays and a break from trading.
You should be taking your trading capital, dividing by 10 and that's 'the most' you should be risking on any one trade. If you do this and trading futures is too rich for you, then you'll probably have to look at spread betting. One advantage of spread betting is that you can place limited risk bets, which guarantee to get you out at a price, even if the market jumps through your stop. Remember, "If you get stopped out without a loss, you can always trade again".
If you decide spread betting is the way to go and start off with say $5 per point trades, you'll probably think a target of 100 points x $5 = $500 per month is pretty small. Don't focus on the $$$, focus on the points. It's all about the points - over the long term. If you consistently make 100 points per month, you'll build up your capital over time to make larger trades. If you focus on the $$$, you'll probably take larger risks, trade when you shouldn't and get wiped out.
Lastly, try not to learn the hard way.
The Results:
|
Entry Date |
Exit Date |
Long/ Short | Open | Close |
Total Points Profit |
Comments |
| February | ||||||
| 01/02/2007 | 05/02/2007 | Long | 5779 | 5779 | 0 | Break even inc spread. |
| 06/02/2007 | 21/02/2007 | Long | 5822 | 5950 | 128 | |
| 07/02/2007 | 21/02/2007 | Long | 5865 | 5950 | 85 | |
| 22/02/2007 | 28/02/2007 | Long | 5948 | 6000 | 52 | |
| 23/02/2007 | 28/02/2007 | Long | 6010 | 6000 | -10 | |
| Feb Total | 255 | |||||
| March | ||||||
| 13/03/2007 | 14/03/2007 | Short | 5997 | 5787 | 110 | |
| 16/03/2007 | 20/03/2007 | Short | 5881 | 5936 | -55 | |
| 28/03/2007 | 29/03/2007 | Short | 5999 | 6001 | -2 | |
| Mar Total | 53 | Average of 154 per month for the two months. | ||||
| April | ||||||
| 02/04/2007 | 03/04/2007 | Short | 5991 | 6034 | -43 | |
| 19/04/2007 | 22/04/2007 | Short | 6230 | 6273 | -43 | |
| April Total | -86 | Average of 74 per month for three months. | ||||
| May | ||||||
| 04/05/2007 | 09/05/2007 | Long | 6270 | 6270 | 0 | |
| 09/05/2007 | Long | 6296 | 6308 | 12 | ||
| 10/05/2007 | Long | 6368 | 6318 | -50 | ||
Entries are noted during the day and then posted later. Live entries would probably constitute 'trading advice' which the author neither wishes or is licensed to do.
The author uses spread betting to trade and therefore prices discussed (particularly high's and low's) may differ from real market prices.
This is a personal account of someone's own trading experiences. These are personal views of the author. The reader should always seek professional advice to suit their personal circumstances.
The content of this site IS NOT investment or trading advice.
If you find this site useful, please email the link to others. If not, simply browse away.
