The problem with tight stops and spreadbetting – FTSE shorting

I put on a FTSE short this morning on my spreadbetting platform at 5780 with a stop at 5820.. it started off a bit dodgy and then hit my stop by 0.5 points before falling (5820.5)!!! Arrrgh! This is really annoying and I ended up nursing a 40 point loss.

The price is currently 5745 which would have been a nice profit at this stage!!

I should have put the stop a bit higher, I was thinking of it as it had previously bounced at this level. With spreadbetting companies, they move their spreads around also so I should have been wary of this but it also means taking a bigger hit if I’m wrong.

Oh well, it’s probably a reason not to trade also during the day when I can’t watch it properly!

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Category: property, Spreadbetting, Trading