Just went over the training materials I picked up on my trading course and realised that I’ve not been paying enough attention to indicators when trying to pick out trades.
So I’m learning more about RSI, MACD, Stochastic Oscillator and volume.
The worst thing is that I’ve realised that I’ve been overlooking important information that would have affected my success rates since I started.
I’ve dismissed potential trades because I didn’t understand how to use the indicators to support my decision making and I’ve entered trades that the indicators would have suggested were too risky.
The outcome is that the number of trades I open might go down but my success rates are quite likely to go up.
Don’t want to boast since I’m far from financially independent (yet) as a result of my spread betting but today I increased my trading fund by 4.5% – my boggest single day gain.
Picked out a couple of descending triangle trades (Genel) and Ladbrokes was a short reversal play from about a week ago. They’ve all gone south today (especially Genel) and have all picked up some tidy gains between them.
I know that going short on trades is politically unpopular these days but until they make it illegal I’m going to keep on profiting from this downward trend.
So, to maximise my profits I’ve moved my stop-loss points very close because it’s always possible that the price action will bounce in the morning.
What’s very interesting is that I mentioned the fact that I’ve mentioned spread betting to my pension adviser today and even he’s interested in the idea as a wealth creation tool.