Special Feature
From the entry price of 9607, the market fell to 8107 in just 5 weeks which represents a gain of 1500 spread betting points. This is a very healthy return in just a few weeks, and at the time of writing the trend is not over yet although there are signs that a short-term base may be forming around the 8100 level. However, until we get evidence that the trend is over, and that aggressive buying has returned, we will remain short. Our system includes proprietary rules that indicate what the long-term trend is as well as where the trend is likely over; at which point we exit the trade. If the 8100 support level does get taken out, July Crude may fall to the next support level around 7700. So, above you have two very recent actual examples of trend following trades we are playing - one long and one short; as well as an outline of the thinking and strategies that were used to initiate, manage and, in the case of the Soybean Meal trade, finally exit the trade. It should be evident that a few trades like these two, both of which have generated large profits, will more than make up for the instances where the markets give false breakouts forcing the trader to exit for a loss.
This brings us back to the key concepts of successful trading, which are: • • • •
Trade with the trend Ride winners Cut losses Manage risk
There is a lot of extraneous fluff bandied about by many so-called experts, most of which is either incorrect or unnecessary. All that is really required to consistently extract profits from the markets is an understanding of the above four concepts and rules which incorporate them; coupled with the discipline to consistently apply them - the latter is what really curtails many people from making money in the markets. All of the above concepts are an integral part of the LS Trader system and subscribers to LS Trader get an analysis of the trends as well as the levels that the system will enter and exit trades in real time, as well as much more.
Readers of SpreadBet Magazine can take advantage of a 30-day free trial so that they can test the system out for themselves. This free trial is a true £147 value. In order to start your trial simply visit www.lstrader.co.uk/spreadbetmag
26 | www.financial-spread-betting.com | July 2012