Chapter 9 - Diary of a trader

You name it, and I've been losing on it. Remember the Abbey takeover? I followed the money just as the wise were pocketing their profits. Then I heard Reuters was the worst performing share in the FTSE 100. I now hold myself directly responsible for its subsequent recovery.

As for gold I don't even want to tell you how I got myself into that particular meltdown position. All I will say that with 20-20 hindsight, it is not prudent to place trades merely to take your mind off the fact that your 74-year-old Uncle David has inadvertently flooded the bathroom while in the process of fitting a new kitchen. (Which, incidentally, looks great: thank you Uncle David!)

Amidst this chaos, Chapter Eight has generated significantly more email than ever before. Must've struck a chord somewhere. As a result, I can take solace in the fact that I am by no means the only loser out there.

Frankly, one or two of these messages were a little alarming. So once again, my dad's golden rule: Never gamble more than you can afford to throw into the gutter.

My total losses to date are £1,500. The good news is that my ego has taken a bigger battering than my bank balance. I keep getting it wrong. And in the words of a former England manager (better a turnip than a Swede), "Do I not like that." I am accustomed to getting it correct in other areas of my life. So how come this spread betting business is so difficult?

"Treat is as if it is a business," comes one sensible piece of advice. "Accept that there's a learning curve, and that your losses are the equivalent of start-up costs." That made me feel better.

As did this message from Pat, who lives in Cornwall and comments: "Quickly trundling through the previous seven chapters I see you have trodden a well travelled path, me included

"Oh dear. I expect you are saying to yourself what do I have to do to make profits? A crossroads indeed. The foolish carry on and throw more money at it and lose that as well. The wise seek help from someone who knows and paper trades meantime or quits."

Well, I am certainly no quitter. But I have had to accept that my short very short! run of beginner's luck has evidently run its path, and that I was in danger of becoming trapped in a downward spiral.

So what do I do next?

Paper trading seems like a good idea. I think it inevitable that once I switch to theoretical betting, I shall start winning again; life's like that.

I have also invested in a few books:

• A beginner's guide to short-term trading, Toni Turner, Adams Media: Promises to show me how to maximise my profits (I wish!) in three days to three weeks.
• The New Market Wizards, Jack Schwager, HarperBusiness: I chose this simply because so many readers have recommended it to me. Thank you.
• The Market Maker's Edge, Josh Lukeman, McGraw-Hill. Chosen for no better reason than because I happen to know of the author's brother is a hot New York literary agent. That and because it promises to reveal four signals for spotting and profiting from a developing trend.
• The Zurich Axioms, Max Gunther, Souvenir Press. OK I confess, I bought this one because the cover has a flash that reads: Wealth Warning This book can make you rich. And because it looks like a quick read.

One of the perks of being me, it seems, is also that people are beginning to send me Free Stuff. Not money, alas, but trading tools.

Amongst these is a Beginners Currency Course. So I'll be road-testing that and I'll let you know what I think.

Until then, it's back to the drawing board for this novice trader.

Sally Nicoll is a writer and a Finspreads customer whose career to date has embraced journalism, broadcasting, and advertising copywriting She lives in London and is currently writing her second novel. Feel free to contact her at veryluckymoney@hotmail.com.
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