In a previous article titled Trade Exits: What’s Your Way Out? I suggested that many retail investors and spread bettors think only about their entries — i.e. which instruments to bet on, and when — and not their exits. The problem is actually wider than that…

I committed to updating on the performance of the “trading trail” longer-term spread bet portfolio once per week, and it’s now been just over a week. I’m pleased to report that the account valuation is now just over £900 (and it was higher mid-week).

Retail investors and spread bettors should have an exit strategy for each of their positions, but many don’t have one. They think only about their entries, and not their exits.

For some time I’ve not really been a big fan of guaranteed stop orders due to the costs involved and the fact that good diversification across a number of positions should provide adequate protection against individual price shocks.

Have you heard the phrase: A long-term investment is a short-term trade gone wrong!? It refers to many people’s natural tendency to hold on to an initially poorly performing trade in the hope that it eventually recovers; thus promoting it inadvisedly from a speculative “trade” to a serious investment.

When I wrote my article The Long Term Spread Bettors’ Wish List I glossed over the issue of overnight financing charges on rolling spread bets, even though this is perhaps the most important factor for the longer-term spread bettor.

I’ve not posted about my Trading Trail position trading reference account for over a week, and you might be wondering why. Well, I figured that readers might not be that interested while I’m on a losing streak

Many first-time spread bettors and even first-time investors are fond of trying to catch falling knives. It’s generally frowned upon in trading and investing circles, because when you try to catch falling knives the chances are good that you will be cut to shreds.

The eurozone debt crisis remains unresolved and after a relatively quiet start to the new year, ratings agency Standard & Poor’s dealt the first major blow to sentiment when it stripped France of its treasured AAA credit rating and downgraded eight others in the region.

You know about support and resistance; but do you know that one man’s support is another man’s resistance?