Has the stock market peaked?

InvestInPoker

kittie wrote: »

I want to recommend a book to you mr poker

https://www.goodreads.com/work/quotes/245670-trading-in-the-zone-master-the-market-with-confidence-discipline-and-a

a wonderful, very highly regarded book.

Thanks, you hit a sweet spot with me there. I love to read to increase my knowledge and understanding. So I had a look at the book you suggest.

It is indeed as you say highly regarded with many good reviews on Amazon etc.

However reading the reviews it says "It focuses almost purely on the psychological" and the reviewer goes on to say "psychology is 95% of trading". I completely disagree with the latter quote and do not fancy a book on the former. The books own description says it is "designed to give readers the insight and understanding they need about themselves" and that is something I already possess fully, especially relating to financial matters. I don't think I will be picking it up at this very second but I put it on a list, I will probably buy it one day in the future when I am bored (so you have influenced me) and bump this thread once I have read it

Good for those tempted to gamble the house and/or more than they can afford to lose

If thats aimed at me then I am sorry you are extremely wide of the mark. I have been a professional gambler for 20 years and never once gambled the house or more than I could afford.

EdGasket

Kittie, I would like to know how much you invested to get £32K profit in 4 days? If it was a huge amount (like more than 1 million) then the result is not so remarkable however if it was a much smaller amount then maybe you have some insight which us poor chaps on the losing end do not and maybe you'd like to share that with us?

InvestInPoker

kittie wrote: »

Another good strategy for me since start of my trading days, was to sell half to wrap up a some profit

You see this is where you and I differ strongly kittie.

It cannot ever be right to sell half to "wrap up a profit". That is just plain bad. If you are selling for the right reasons IE you have a correct and logical reason for it then you should go ahead and sell the whole lot. If on the other hand your correct and logical reasoning shows that you should hold onto the purchase (despite it having already risen and the fact being there you could cash in for a profit) then you should stomach the variance and hold it all, until it is time to sell all.

Selling half soley for the reason "some profit" is what poor gamblers do. It is a mathematically poor trade at the cost of your own financial well being in the long run. It is irrelevant if correct thing to do is hold so you do and the stock tanks. Make the decision with the best expectation for your money and in the long run you will rise to the top. This is a principle I find many people cannot grasp but to me it is key.

Of course you should not be "betting the house" as you alluded to in your post. People doing this are driven to make poor decisions due to being unable to handle the variance on the money. You should of course only be using money you can afford, so you can always make the best decision without sweating it.

EdGasket

EdGasket wrote: »

Kittie, I would like to know how much you invested to get £32K profit in 4 days?

hmm no comment then.

caveman38

A good week like this. IG Index Spread Betting and Leverage. If you know what you're doing and she clearly is.

EdGasket

caveman38 wrote: »

A good week like this. IG Index Spread Betting and Leverage. If you know what you're doing and she clearly is.

"No one makes money spread betting without inside information"

Believe it or not that's a quote from an IG employee on radio 4 many years ago in the early days of IG Index. I think something like 94% of SB accounts make a loss and those that don't are either professional traders with inside knowledge or the tail end of the distribution where by chance, a few people win.

Kendall80

EdGasket wrote: »

"No one makes money spread betting without inside information"

Believe it or not that's a quote from an IG employee on radio 4 many years ago in the early days of IG Index. I think something like 94% of SB accounts make a loss and those that don't are either professional traders with inside knowledge or the tail end of the distribution where by chance, a few people win.

I gave it a go but I became 'almost' convinced that my stop losses were being taken out. That is the degree of regularity with which the market would go against my position to the precise point of my stop-loss before reversing. Fortunately I limited my exposure to a relatively small amount. Still - they cleaned me out.


I made a significant mistake investing in individual shares too. Best to get all the 'learning experiences' done early on I reckon

EdGasket

Getting stopped out is just one of their tricks to get your money and remember they make their own prices so although they can't diverge greatly from the market expectation for any great period of time, they can and do move the prices sharply to trigger stop losses.

It's like casinos. Those guys aren't in business to hand over money to you week in week out for nothing.

grey_gym_sock

now you're making me feel guilty for owning a few shares in IG Group ...

well, not really. i also have some shares in tesco, if that makes you feel any better.

Kendall80

Indeed. Although you'd honestly think they'd hide it a bit better. Maybe go slightly past the stop loss once in a while rather than to that precise point.


I read somewhere that the best way to make money from a spread betting company is to invest in them.