Good afternoon everyone!
I'm new to spread betting and trying to create a plan for day and short term trading.
Below are the rules I am endevouring to trade with but with mixed results.
I would be grateful for any help or comments.

1. Check whether NY stock market was rising or falling on previous day.
2. Check whether UK market/s are rising or falling - particularly market you are trading in.
3. Pick stocks trending upwards to go long - and downwards to go short.
4. Try to find stocks with prices moving firmly in one direction.
5. Check trade buys to see if the stock has liquidity - some stocks rarely trade big volumes.
6. Buy stocks trading with rising volume.
7. Look for stocks with low spreads.
8. Avoid selling on Fridays - people often unload shares before the weekend and price goes down.
9. Check if there is a best time of day to buy and sell.
10. Unless there is a good reason, buy after 10am when the spread is often lower.
11. Watch out for volatile shares - you can loose big time with a low share price and high volatility!
12. Decide a percentage profit sell price and stick to it.
13. Don't chase shares down to try and achieve a profit - sell and look for a new prospect.
14. Don't buy every day - if there's not a good prospect wait until one comes along.
15. Check news to see if anything may affect the price.
16. Trade in the direction of the market.

Sorry this is so long!

Always set a stop loss and only move it to lock in profit.

Work out your max stake for one position (say 25% of kitty).

If you want to trade set up a list of trading stocks that match your criteria and get to know those stocks very well (say 10 max).

Before you make a trade think about your exit point as well as your entry point, then consider the risk reward ratio.

I don't spreadbet yet, but have been looking at Goldline trading system. They say you can get 400 points profit a month using their system. Well that's what they aim for..not sure about it myself though.

Apparently this 'works' by hedge betting. As soon as the market moves you close out the losing trade and let the winning one ride, and it's all automatic once you have set up your trades or the day.



so hedge betting could be added to your list perhaps?

Re: "Systems" - ask yourself - if the system is that good, why are they selling it and not using it themselves at 1000/point.

And if the anwser comes out as anything other than "scam", then repeat the process until it doesn't.

Of course, their motives might be whiter than the purest driven snow - and I'm a flying pixie from planet Neptune

Thanks for your comments everyone.

I use Omnitrader to spot breakouts and trends but I find you need to study the news, brokers recs. and company reports etc. to back up its selections.

Anybody else out there using this program? If so are you making money from it?

# 8 is the exact opposite of what traders do - they don't want to hold stock over a weekend - anything could happen in that length of time.

Good point Exotoxin! I will amend rule 8.

zzaxx99

I e-mailed Goldline asking them some simple questions and their response was a little oblique.
Needless to say I wouldn't touch them with a leather barge pole. see below:

----- Original Message -----
To: @goldlinesystems.com>
>
> Just had a look at the info regarding Goldline.
>
> If I invest 15000
>
> 5000 for the system
> 10,000 to bet with
>
> I can then look forward to 40,000 p.a. (assuming I holiday for 2 months)?
> This sounds a bit too good to be true.
>
>
> Regards
>
> p.s.
> how much is the yearly licence & maintenance fee?


"Thank you for your email. To answer the questions that you have asked, this
in turn will raise even more questions,so to answer your questions fully it
is better that we speak. Also I can talk a lot faster than I can type. So
please give me a ring on ******* or drop me your contact number and I
will call you where I will be able to elaborate on your questions.

Regards"

re suggestion of betting/investing 25% of kitty - that gives you four chances to lose the lot. How about 2.5%.

Some good commentary on Goldline here (you'll need to join the site), surprisingly, not all negative.

They also appear to be the purveyors of Selecta7 a horse-tipping scheme. Now, some people would tend to regard all horse-tipping schemes as little better than ponzi scams - I wouldn't care to comment - I can barely tell one end of a horse from another.

But, I wouldn't touch either of these schemes with someone else's bargepole, never mind my own.

Tradman, Do you have FTSE end of day data? If so you could have a look at what Omni Trader does over say 12 mos. Personally I find it very hard to make money consistently intra day, You need to speak to Croc, go on courses and the like to expect to succeed on day trading, and then theres mental discipline so they say! Any way just in case your still interested in OT. put the FTSE chart up for 12 mos or so with the focus list on Medium aggressive. On the chart options go to plots and click on KBA-C .Then go to System testing ,click Trading system tags. Unchech all systems except KBAC daily. I also reduced the back test to 140 days. I expect to go short on sells listed in my 350 list soon, now short RBS from last nights signal. You can see for yourself that had you acted on the signals over the past 12 months or so you wd be well in profit. Whether you go day trading or use OT keep your stakes small till you win regularly, one thing on your list, if the US is up in the evening the spread bet cos will have adjusted prices before taking your money in the morning ,and finally Good Luck & DYOR P.

exo-t

good point about TRADMAN's pt.8

please can you comment on pt.9 - i believe there are peak times for some FTSE100 shares (i watch BA. ANL ISYS + a few others)and between 9:30-10:30 and 2:30-3:30 i tend to notice price swings.

do these times mean anything? is it when institutions get busy ?

all comments welcome.

t.

i c a few people are commenting on goldline do yourselves a favor ignore systems develop your own ! its the only way,ive friends,who sell an end of day charting package it costs 3k yep and people buy it,but if they hunted around they could prob get the same stuff for abt 11quid a month but they are all looking for the easy buck.
tradman u have taken the 1st step by listing 10 points but i bet you in 6 mths a lot of those points will have cjanged as ur expereince of the markets does.
rember trading is 80 % psychological 20 %methodolical in other words as long as you can understand the markets and can control your emotions (which is the hardest thing to do).then you will be on the right track
good luck

PERICLES - many thanks for your comments.
I have set up the FTSE chart and trading model in Omnitrader as you suggest.
Is your idea to use this to try and predict the direction of the FTSE so as to decide whether to go long or short? It seems to have worked with RSA.

DATAI - you've right! Point 8 has been deleted already.

tradman:
my basic formula for trading(not engraved in stone please re-evaluate as needed and required)

The formulae

A good money management system is simple and the biggest aid to security and successful profits. Once it gets going, it compounds and works for you, not against you.

My simple method to calculate bet size is as follows:(or the stop loss)

Bet Size = (Capital X 5%) divided by the stop

For example

1. Capital say 5,000

2. Maximum risk per trade 5%

3. Stop points per trade 20 points (e.g. FTSE100)

Bet Size = 12.50 = (5000 X 5% )Divided by 20

Using this formula we now know that a bet of 12.50 per point is within our stop loss parameters.

this ensures that we stay in the game even if we get losing position.

rgds to all
zarif

ps: feel free to look at our dow index thread and post your comments good/bad
u r welcome

ZARIF - nice simple formula.

Maybe this could be added to the calculations:-

If you want to make 5 trades at the same time, dividing the capital by 5 gives 1000 per trade allocation.
5000 divided by 5 x 5% divided by 20 pts = 2.50 bet size.
Stopping out of all 5 trades results in an overall loss of 5%.

Hope I'm making sense here.

Hi Tradman, I have had, but not used, Omni Trader to the best advantage,lazy I suppose.A few weeks ago I was giving myself a hard time due to another loosing streak and as a result had a look at OT applying KBAC sigs to FTSE with the results suggesting its much better at this game than I am!So I am doing bets based on OT recent signals. I intend(at the moment !) to keep the bets within my comfort zone, essentially so that I can spread bet several and not lose too much sleep over the weekend (plus stops of course). The idea is to run the bets according to the OT signals until I get an end of day reverse signal. Pru has been going up, but not in a straight line -wot does-over I think 10 trading days from buy to sell sig. As part of my end of day stuff I get sectors and these have thrown up Sells but no buys today they are banks, personal care, Life assce, engineering, chemicals, from this I see pru for instance is part of a whole group which is going the same direction.The FTSE also gave a sell signal as did some 16 of my top 350shares whilst I only got one new Buy signal from the 350. I am expecting to short for several days but anything can happen

Tradman, continuing the above, I will post on here wot I do, but there may be a week here and there of silence this end while I wait for next signal.Basically it will be the OT KBAC plusTXMP perhaps, the trickey bit comes when the shares/index get into a trend which persists. With regard to spread bet coys I use two, they sometimes have different prices, not spreads, which could be useful to notice, but mainly if you have a backup and one site goes down you can get in .It might be expensive for me to use rolling bets as opposed to near month if the trend is generally the way I want but the day by day moves jig about.Once again DYOR etcetc, and good luck with your OT. I received email for their latest system $4500 I think, take a nought off please!

morning, down bet Ftse 100 Dec 4352 , see how it goes!

PERICLES - As I think I mentioned, I use Omnitrader to help find signals for individual shares - I'm not into Indices yet. I find OT often predicts accurate signals (depending on the particular share) but the price sometimes peaks too early to get in on a trade. The best use for Onmitrader seems to be as a starting point and to help with checking the character of the share - trending or volatile, etc.
CROC says you really need Level2 to help confirm direction before trading and I'm sure this would help to get it right when short term trading.

Pericles:
Many thanks will give it a shot and let u know
rgds
zarif

ps: please do us the honors by visiting and commenting good/bad on the dow thread