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Fixed-odds wizard: week 28-29

Created:
20 August 2008
Written by:
Matt Shaw

It's been quite a fortnight for me. Where to begin? First up: the big news. I have taken a loss on my £100,000-target account. It was quite a substantial one and totally my fault to boot.

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Put simply, I broke a rule. I over-exposed myself to trades involving the good ol' US dollar. The market waited until I was settled into my holidays before beginning a major rally for the greenback.

The upshot: my account has hurtled back to below £10,000! Ouch. Admittedly, I had other profitable trades on the Dow and S&P, but they weren't nearly enough to offset my losses on my dollar bets.

I won't lie: it's been a tough two weeks. I will just have to take some calculated risks now in order to try and build my account back up again.

It will be tough to hit my £100,000 target by the end of the year, but I am going to keep going. I think there are good opportunities to be had in both the Dow and S&P, as September arrives. The volatile sessions seem to cancel each other out.

Also, I reckon the pound could be drop all the way to $1.82, or maybe recover to $1.90. Big moves could occur one way or the other.

At least my holiday did me some good. The surf helped clear my mind. I am now in a good frame of mind to trade the indices and to get me back up to £30,000 on my target account.

It's not only my target account that has suffered. My clients have also lost out on my recommended trades on the dollar. I feel sorry for them, but also quite sorry for myself.

As of Tuesday 19 August, markets are lower. Inflationary pressure in the US is putting a dampener on things, particularly in the stock market. in the form of the higher than anticipated PPI number. Sellers are obviously passing on higher costs to consumers for goods and service, and every time the equity markets, (no matter how much this may be priced in) does not like this once confirmed.

I am just settling back into my trading routine now, and am looking around for my next opportunity. In all probability, it will be on the S&P500. Wish me luck in getting back to £20,000 on the target account as soon as possible.

Happy trading,

Matt

MORE FROM THE FIXED-ODDS WIZARD...

Read all Matt Shaw's columns...

Or see Investors Chronicle's new, FREE, investment guide to fixed-odds betting.

If you have any queries about fixed-odds, or trading the indices in general, I'd love to hear from you. Please e-mail me on: matt@fixedoddssuccess.com.

Or visit my own website at www.fixedoddssuccess.com

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