I have been mostly watching the markets on the sideline for the past two weeks. I opened a position six days ago shorting the FTSE at 5890 and closed it yesterday for 230 Euro profit. Due to my shattered account I am now trading 2 Euro instead on the normal 3. As there is a minimum order amount of three I have to place the order and immediately sell 1 Euro worth for a loss of a 2 Euro. With only 800 Euro in my account I feel more comfortable with this.

Yesterday I opened a buy trade on the FTSE at 5724 for 2 Euro. At the moment I’m in profit of 120 Euro which will hopefully rise as the day progresses. The rebound seems to be in part the establishment of a trading range and the fact that the ECB (no move) and BOE (-.25) have finished their business of rate stays and cuts. Whilst the markets seem to be establishing rages market volatility is seeing those fluctuate radically from -200 to +75 which will take out any reasonable stop loss. This is causing a few headaches as even correct trades are being stopped out. To counteract this I’m trading FTSE March futures and can leave the trade open for weeks and am applying mental stops rather that actually placing the stop when placing the trade. This is risky but considering the small trade size I am comfortable with this approach.

As the title of the post suggests my trading strategy is to buy into weakness and sell into strength. This seems to be what is establishing the trading range so as they say follow the trend. The FTSE range seems to be 5750 (+/- 30) – 6000 (+/- 30) which gives me ample room to make a few quid.

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