Been lurking a while so its about time I posted
The bulk of my investments lies in an international equities portfolio, American and Australian shares. I trade PUT options on it each month, against quality companies that I wouldn't mind owning should the price move down below my option excersize price. Apart from that it sits there being pretty boring.
So to keep my blood circulating I daytrade using Bet On Markets.
I use it as a trading tool to make money apart from my online businesses. Using risk and money management with my trading strategy I am able to make a decent income each month.
These guys serve a community of more than 300,000 clients worldwide and have been operating since 1999, so they have been around for a while. Here is some information from their website:
Bets may last from 30 seconds up to 360 days and can be placed on a market moving upwards, downwards or sideways with as little as $1 or as much as $50,000. With fixed-odds trading, your risk is always limited to your stake. This means that your risk level is clearly defined before you commit to a trade.”
It is important to realise that besides the potential to make a lot of money, there is also the risk to lose money. I have a disclaimer here which is that you should always do your own research before trading
Here are some of the details if you have not used Bet On Markets before:
Deposit Currencies : USD/EUR/AUD/GBP
Account Funding Information : Credit or Debit cards, Bank wire transfers, Ipoint, Ukash, Webmoney, Moneta, Moneybookers, Western Union and Neteller.
24hr Trading : Yes, Trading on Random Indices is available 24/7. Trading on any other market is available during market opening hours.
Free Demo Account : Yes
Markets : Forex, UK and US stocks, Worldwide Indices, and Commodities.
This is How I Trade, its simple:
I’ve had an account for a couple of years now, and I initially funded it with $500 just to have a go at what was a new style of trading. I could buy bets based on market direction, or if a market would get to a certain price, place them for an amount of time that suited me, and if i lost, all i lost was the amount i risked on that particular bet.
I trade like this:
•I usually only bet on major indices and forex pairs.
•My account size and money management now lets me bet $100 for each trade, per day.
•I place bets on the US500 Indicy, and the ASX200 Indicy.
•I place bets on the AUD/USD Pair, and the EUR/USD Pair.
•I use the Rise/Fall bet, which means you are betting on the market going up or down.
•Bets are placed to expire in 24 hours, so they last a day.
•Bets are placed in the last 30 minutes of the trading day, so 15:30 until 16:00 for ASX200 or US500.
•After two consecutive losses, or two days of the market going down i increase my third days bet 100%. This then doubles if the market goes down for a third, fourth and fifth consecutive day. ( very different to martingale system with indicy markets )
•On my account, my bet size is never larger than 2% of my deposit. So for example, with $500 i wouldnt go higher than $10 per trade.
•As long as there is no more than 6 consecutive days of the market going down i will profit.
I 'did' a graph of the ASX200 Indicy, for the last 8 months or so.
You can see that from the last 157 days of market action, 90 days the market was up, and 67 it was down. This means 57% of the time my trade was successful, and 43% of the time it was not. Because i double my bet after two loss days, each time the market improves and goes up on the 3rd day i get my money back.
This turns 2 losses and 1 win into zero, or even, which improves the win rate from 57% to 60%, and the loss rate from 43% to 40%. This is a huge jump in trading profitability.
Now, in the last 8 months there were 6 instances of the market having 3 down days in a row. This caused me to lose 3 bets in a row. Because i doubled my bet on the 3 day, and lost, i doubled that again on the 4th day, which rose and i won all of my money back from the previous 3 days, well almost, the payout isn't always 100%. This improves my win rate from 60% to 67%, and my loss rate from 40% to 33%.
This win rate % improves even more for the times the market has had 4 and 5 consecutive down days, because on the 5th and 6th day that it goes up and i profit, the trade had been doubled and the payout made me my money back from all the loss days.
I have been using this system for a few months now, and have not had that many losses in a row yet. Even studying longer graphs than this, it is extremely rare to have the market go down more than 5 days in a row. If it does go down 6, or even 7 days in a row then you will hit the limit on your deposit and you will lose most of your funds. The market would also be in bad shape, most likely heading into a bad bear market for that many days of downward momentum.
That’s the beauty of this trading system i use. I don’t care if the market has gone down 10%, as long as it goes up to break a downward trend. It works great when the market has a whole week of going up, because thats 5 days of wins!
I take out $500 of profit every time I make $1000. This slowly grows my account size and also pays out.
I generally see markets move down fast, and rise slow, especially in bear markets when you can see markets drop 1-2% daily.
This is good, because when I’m placing my bet each day for the market to rise, it doesnt matter by how much, it just needs to be higher the next day than what my entry was at. If the market has had two bad days and dropped a few percent, and rises slightly on the third day, then i get all of my money back from the previous days as well, because my bet was doubled on the third day.
And with markets dropping quicker than they rise, there are more days that it rises than drops, which makes me money, and I assume this is why the payout for rising markets isn't quiet 100% all the time, because this probability is built in ti an extent.
Here is an example:
• I log into my Account
• Click Start Trading, then Indices.
• I place a 1 day Rise/Fall trade on the US 500 Index 30 minutes before the US market closes for a $100 profit, which present a little over $100 at risk.
• The trade profits if the US500 Index goes up by the end of the next trading day. It loses if the market level is lower than when i initially placed the trade.
• Repeat this each day for $100 profit.
• If the market moves down two days in a row, i double my bet for day 3, which recovers my losses from the other two days.
Last 10 Days – $463 profit
I missed trading on two days due to lack of organisation and being stupid! Those two days the market rised, so i missed an easy $200. Here is a screenshot of the last couple of weeks trading.
This takes me about 5-10 minutes a day as i put my trades on, and in the last couple of weeks ive made hundreds of dollars.
I now trade at a high 70% success rate, with my profit margins from each trade being around 90%. As long as there isnt more than 6 down days on the market my strategy will work. To allow another day, i can deposit more funds into the account, but im happy with the risk management i have now.
In regards to the forex pairs I don't trade every day. I wait for daily candlestick signals to enter. I love candlestick trading, price action trading.
I also like to trade more when I notice rising star and hammer candles in the indicy pairs, because I know the chance of market direction is more in my favour.
Im happy to share more and answer questions, and if anybody can get the pics to work that would be cool.