Well 2018 turned out to be a nice year. Although on a trading front [for me personally], 2018 was one of my quietest years.
I didn’t trade anywhere near as much as normal. This was a planned decision at the start of the year.
The first reason being I wanted to be on call to answer the emails from my spread betting students and help anyone out with any issue they may have had. This was enjoyable and I connected with some great people in the process.
Also, I wanted to spend some time [lots of time actually] doing my things. And concentrating on my own personal development.
Not having spread betting on my mind enabled me to do this.
Blogging and trading is quite time consuming when combined. So I thought that a quieter year was well and truly overdue.
Basically, a break from spread betting was wanted, needed and taken.
I also needed to concentrate on looking at places abroad that may be suitable to buy a holiday home. This was a main goal for 2018. Although we didn’t find anything to put money into, we researched lots of areas and have now made a shortlist of destinations.
We also managed to get away to a few of these new places. Overall this was all refreshing and nice.
Much of my trading over 2018 was done via Schwab where I buy actual stocks.
The final results for the year are hard to be completely accurate with as seasonal trades do not finish until April; but overall to date just shy of 6% return which whilst not spectacular, are still very respectable compared to the bank. I know other traders didn’t get those returns though.
December absolutely battered the results to be honest. But the last few months from around October accounted for a 11% loss overall. Ouch!
Dogs of the Dow made a very small profit this year which hampered overall results too. If we had gotten the regular 10% + returns, then the picture could have been way stronger. General Electric cost most of the profits this year on the dogs.
So GE is out and JP Morgan in.
You can read about the Dogs of The Dow here
Long Term Game Plan
You have to get it into your head that trading is a long term plan. I could well see my account down 20% some years but up 30% + on others. That is the reality of trading stocks.
So many people hit the bail out button at the first sign of a loss and then never go on to make any money.
They then miss the rewards that the markets can offer long term.
If you bet that the US markets will go up over the next 20 years then you won’t go far wrong. Of course some years will be negative. But as Warren Buffet said…
“For 240 years it’s been a terrible mistake to bet against America, and now is no time to start.
2018’s spread betting tended to be me looking at different trading strategies to pass on to you.
I actually didn’t mind doing this, even though I wasn’t concentrating on making profits myself, it felt good to just potter around on IG and CMC Markets. Testing ideas and looking for new ones.
What I am still sure of though, is that the DAX remains the easiest market to trade for short and longer term profits.
You can quite easily open a longer term trade with a view to hold over weeks and months and then trade the shorter term moves alongside on a separate account.
This type of trading can be really effective.
Easy to Get Started
The good thing about spread betting is that your profits and loss are accounted for as you go. That is the whole idea. Cutting your losses and letting your profits run.
This can be far more suitable for many as a lot less capital is required to start up.
It’s how I started out and obviously still trade.
You can trade on CMC markets for .25p a point and still rack the profits up.
What’s in Store for 2019
I will obviously still be trading at Schwab and Vince Stanzione says that individual stocks will be where the money is. I totally agree.
I will also be concentrating on my spread betting again with a view to trade the DAX consistently throughout the year. I will be posting these ideas/trades up to my private spread betting students.
If you want the chance to join and get my trading system, then make sure you are on the mailing list here. I’ll send you notification. The doors will open in a few weeks and I will let a handful of you in.