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Finance Blog: Is There Any Science in Financial Trading?
Financial spread betting has potential for high gains, but why are people generally so unsuccessful at it?

Trading Diary November 2015

22/11/15:The last week or so has been very bad for my spread betting account and I became too dispondent to want to post every day. The rot started on the 11 November with a large loss and the losses just continued. Rather than trading on the basis of the charts themselves, I responded to my emotional state. On several occasions, I closed on a loss only to see the position go into reverse. On other occasions I squandered a reasonable profit only to see the market reverse course and turn that profit to a loss. I have not been thinking clearly enough or these losses would have been reduced.

My worst trade, though, was following the turmoil in Paris when I became convinced that the market would drop. In fact it rose significantly, and I remained convinced of my argument for far too long. I eventually closed for a loss of over £200. What this indicates is that often the political situation may say one thing, but the market may say the opposite. This just exposes the need to respond to the market rather than the political situation.

Once that loss occurred, I became a nervous trader, which only made things worse. Finally, on Thursday (19 November) I recovered my brains with three trades, which together broke even. With confidence at least partially resumed, I made two trades on Friday (20 November), one long, one short, picking up £15 and £14 in an overall flat market.

The loss for the month is now almost £300 and my profit since April is barely £100. I still have a lot to learn, or at least still need to put into practice what I have learnt!

23/11/15:My trading is still somewhat nervous and tentative, which led to further losses on the day of £48. I made four trades, all short. Unfortunately, the market generally went up and my final trade lost £41. I really should have closed long before it reached that level.

24/11/15:I made 6 trades, which were all short except fot the first rather tentative trade. I took out a long trade before the main market opened, but it wasn't going anywhere so I closed at almost break-even. Once the main market opened I went short and picked up a nice profit of £26. I closed too early and gave it a second shot. However, my greed was my undoing as the market reversed and I threw away virtually the whole of that profit. After that I became somewhat tentative, just picking up odds and ends for a total profit on the day of £15.

25/11/15:The day did not start well. The FTSE had been ticking up, so I went long soon after the main market opened. However, that turned out to be a spike and I closed for a loss of £26.60. The FTSE continued downwards and after a while it was starting to turn. I spent too long watching but eventually went long again at 6299.5. The rise continued for some time and I was determined to make up for my earlier loss. I closed in the end at 6316.5 for a nice profit of £34, enabling me to be £7 up on the two trades. After that I made three more trades going long twice for small profits of £11 and £7, just getting back some confidence after a terrible November so far. Finally, just after the US market opened, I went short at 6330.5 but again I didn't want to push my luck. Once I had a chunky profit, I closed £19 up and £45 up on the day. I thought I would have an early day of it today. Perhaps I have now reversed the poor trading performance of late.

26/11/15:The day started reasonably well, when I picked up £16 shortly after the market opened. After a period of consolidation, the market resumed upwards, so I went long for a second time at 6356. Soon afterwards, the FTSE seemed to stall, so rather than risk any loss, I closed at break even. With the US holiday later today, the UK markets were relatively quiet, so I found it difficult to interpret the usual MACD analysis. I went long for a third time in the morning, this time at 6361, but the FTSE dropped soon afterwards, and fearing larger losses I closed for a loss of £15. Once again, the rise resumed so I tried going long a 4th time, but I lost patience and closed at near break even. Gain for the morning so far has been £1.60! Enough to buy a newspaper!

By the afternoon FTSE movements were slow due to the US holiday, so making out market direction proved challenging. Therefore, I didn't make any further trades.

27/11/15:Again, with the market subdued in the USA, the UK market was again difficult to call. It seemed that as soon as a move started becoming significant it would reverse. In the end I made 5 trades --- 3 losing and 2 winning, which led to a loss on the day of £21.60, and a small loss on the week of £7.60. I hope next week will be better!

30/11/15:I went short 5 times during the morning. Unfortunately, two of them led to quite major losses of £20 and £26 for a total loss of about £30 on the day. The confidence in my trading has been steadily eroding, but at least I can draw a line under November's activities.

Previous Months' Accounts

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