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The contents of this blog do not constitute investment advice. Trading CFDs and Forex can be very risky and you can lose much more than your initial deposit. Seek professional advice before making any trades.

FTSE 100 CFD Trading: 2nd June 2009

The day started well with me spotting several trends and managing my risk well. By 2pm I was up 22 points.

Things went wrong after this when the market got more choppy. My biggest loss was in the afternoon around the time that the US housing data was released. The index started moving fast and I tried to profit from the surge upwards. I was too late and bought at the top, it went quickly down losing me 11 points.

The general ‘choppiness’ of the FTSE caught me out several more times in the afternoon. By 3:30pm I was down 10 points.

FTSE 100

Time Price Time Price Profit Running Profit
1 10:56 Buy 4467 11:04 Sell 4468 +1 +1
2 11:09 Buy 4472 12:11 Sell 4479 +7 +8
3 12:44 Sell 4472 12:56 Buy 4475 -3 +5
4 13:19 Sell 4459 13:43 Buy 4442 +17 +22
5 14:42 Buy 4462 14:46 Sell 4453 -9 +13
6 15:00 Buy 4486 15:02 Sell 4475 -11 +2
7 15:05 Buy 4479 15:15 Sell 4469 -10 -8
8 15:25 Buy 4468 15:52 Sell 4466 -2 -10

Lessons learnt.

  1. Trying to join sudden trends is very risky. Slow steady trends are definitely safer.
  2. Trading using a 1 minute chart gives a big risk of false signals. Perhaps I should stick to longer time frames.
  3. Overtrading is expensive as you are paying the spread for each trade – the FTSE spread with the company I use is 2 points. Looking at the overall picture of the day there were two big movements upwards and one large movement downwards. The optimum number of trades for the day would have probably been 3 rather than 8. These things are always easy to say with hindsight!

Due to not having much ‘free’ time the next trading diary entry will probably be in 2-3 weeks.

Reader Feedback

One Response to “FTSE 100 CFD Trading: 2nd June 2009”

  1. TradeOMan says:

    Better luck next time dude!

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