FT has been trading full time from home for two years, with nothing but four kids and a beach to distract him .
He fills his spare time with weight training and rugby, though more coaching than playing these days.
FT mostly trades the forex markets and although he plays FTSE on occasions his bread and butter market is £$.
He likes to think that his technique is evolving but still hasn’t the temperament or money to back the big calls. He prefers to trade between 1 and 3 times a day, aiming to take regular small gains, but feels part of the evolution is in not dealing if the conditions don’t feel right.
More Pies Than Fingers
I haven’t gone near the currency market today. At the moment there are more pies than fingers to stick in them. I’m still playing the FTSE spread bet and with massive volatility in equity markets I’m concentrating all my energies on the one profit centre.
Yesterday I opened £1 sell spread bets in FTSE at 6107 and 6056; today I added to the position, opening sell bets at 5950 and 5939. At the moment I’m sitting on a £220 profit, but I’m a bit concerned.
To me, the market ought to have a bounce soon, even within a downtrend, but it feels awful. The panicky, indiscriminate selling, with no respect for support and resistance lines, reminds me of the chaos last August. I don’t know whether markets are being driven by forced sellers or whether hedge funds are trying to recoup their profits (and dignity) by slapping an easy target.
What does concern me is whether the Dow is suffering from a broken neck. Check out the graph:
Same warnings as before, we all draw lines on different charts with different lead in our pencils. But even allowing for that it’s worth thinking about in terms of trading opportunities.
And for the disbelievers out there, check out this recent article I wrote The Fun Starts Below The Neckline then look at the fall in GBPJPY since then on the chart below.
The rotten news for me is that I’m still better at spotting these big trades than backing them with a wide enough stop loss. I previously sold GBPJPY at Y216.35, but was out by Y214.55. It’s now at Y208.55, 600 pips lower. That could have paid for my season ticket for Bath rugby club. Bugger!
Happy Trading
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