We are down 4%
During the period we were up a maximum of 15% and it has been a big drop to take us back to -4%.
The emotions are difficult during these times, particularly as you are trading other peoples money. I traded very well at the beginning of the period to take us 15% up. And then – well there is no hiding or making excuses – I didn’t follow my own strategy and, by-and-large, made a series of poor trades on the short side.
If I can liken spread betting accounts to climbing Everest: we started at base camp, got blow down the mountain initially then made a charge up the mountain – 15% up. We hit a crevasse and, as your guide, I got the abseil ropes out instead of the crampons and possibly a couple of ice picks.
We have slipped all the way back, just down from base camp. To consider a new guide is understandable. This guide – me – has had a few years climbing other, more forgiving, share ranges. This is the 4th year on this mountain, meaning spread betting. I got to the top – well, slightly above the top if you want to picture a short vertical helicopter ride. Another year I got half way up the mountain and another almost 2/3rd of the way up the mountain.
During each of these attempts I’ve re-visited base camp, and once quite late in the year. So all is not lost in our attempt to get to the top – which is the same as doubling our money.
I’ve studied the issue hard over the last two weeks and readjusted to help move with the change of the market. I’ve also reaffirmed my own strategy and operation. In this game when you get it right your financial reward is good but when you get it wrong the hit always seems higher.