A trading starter kit (complete with £100)

Have you been wanting to take your first steps into trading?

Have you been hesitating because you don’t want to put your money at risk?

Or because you’re unsure about which trades to take?

Well, here’s a really simple way in.

It involves someone putting £100 into a spread-betting account for you.

And I’ll show you a very straightforward way to pick out trades, so that you can begin investing that £100.

It’s like a trading starter kit.

The money – and the profits – are all yours to keep.

What’s not to like?

So, this week I want to tell you exactly how you can get a free £100 to play with – and I have a great idea of how you can invest your £100 for the future …

I’m talking about picking your own trades here – not buying into someone else’s ideas. But taking control of your investments.

(And it’s really a lot less tricky that you might think!)

So, if you’ve been standing on the sidelines, unsure of how to get started, this could be just the impetus you need to take that step into your trading career.

First off, let’s get your hands on that £100 …

I’m always encouraging traders to shop around with their spread-bet platform.

It may seem fickle, but I’ve a string of accounts, and I’ll use them according to which best suits the strategy I’m using (and who’s offering the best deals and freebies).

And currently, top of my list is Capital Spreads.

Why?

Because they’re giving away £100!

[unfortunately this offer is now closed]

And, they have some of the lowest trading costs about.

There are other benefits that come with using this platform (not least the very specific trading alerts they give – which I take advantage of with my Bread-and-butter trading strategy).

But today, I’m only interested in that lovely free £100!

And how I’m going to use it …

Perhaps you already know exactly how you’ll use your £100.

Perhaps you have a trading strategy that you’re using (or even a range of different strategies that you apply).

But maybe, you’ve no definite strategy.

Maybe you’re not sure what you’d do with the money.

Blow it on a string of badly judged positions?

Or take a big gamble and hope it pays off?

Which brings me on to the second half of this trading “starter kit” – how you’ll be picking your own trades.

So, here is a simple, no-nonsense trade to try out …

A trading starter kit …

The world of financial publishing is full of complex trading strategies. Some of these are highly profitable (some are outright cons), and the better ones will be based on much testing and trading experience.

The one I’m about to show you is an old favourite of mine (it’s been listed on the website alongside other free strategies for some time).

I’m not about to suggest that it’ll bring you untold wealth.

I haven’t run stringent tests on it.

But, if this strategy forms the foundation that your trading builds on – you could do a lot worse.

Here, I’ll give you the simple set of rules, and then I’ll run through how it’s performed so far this week.

You can then judge for yourself.

The rules

• Trading GBPUSD 15 minute charts, 7am to 11am, avoiding holidays and major economic announcements.

• My technical indictors are: 10EMA, 20EMA and 50EMA.

• If the 10EMA crosses the 20EMA and continues through the 50EMA, then I’ll buy or sell in the direction of the 10EMA. If the 10EMA has no clear direction, this is a no trade.

Hey, I told you it was simple!

• Exit criteria: The obvious place to put our stop loss would be just the other side of a recent high or low. I appreciate that sometimes this might involve a big move, and assuming that we’re only spending our £100 here, we can’t afford to run a big distance to our stop and keep our stakes low. Just a stop of 10 pips will be a £10 risk on £1 stakes (which is an eye-watering 10% of our bank!) I’m going to leave this aspect to your discretion.

How we did …

Tuesday’s trading:

After my two moving average crossovers, I can enter a sell trade on the next candle at 8.15am, which will easily give me 50 pips profit (not that I’d necessary be staying in the trade for that long).

Wednesday’s trading:

Unfortunately, no trading signals on Wednesday (that crossover on the left of the chart happened at three in the morning, when I was safely tucked up in bed!

Thursday’s trading:

 

Yawn … another no trade day.

Okay, it’s not a runaway success, but a quick glance at the previous week’s trading shows 3 potential winners and 0 losers out of 4 trading days.

And having to sit out when no trading opportunities present themselves is always a good lesson in the art of Zen – which is something most of us traders could use!

Admittedly, a couple of weeks trading isn’t something you’d want to lose your shirt on, but simple moving average crossovers are a great foundation to build a strategy on.