cornish pasty

Thanks Vedanta! My knowledge and understanding of trading is building up slowly. I've spent a few weeks understanding the maths behind CFDs and leverage, and right now thats the limit of my knowledge. Option theory is the obvious next step but i dont want to run before i can walk! Having said that the more I read the suggestion the more interesting it looks, but I'm definately not going to make a trade I don't understand 100%.

Guys thanks for those comments.Making a lot of sense. One thing though with CFDs the minimum you can risk really is £2000 to open the trade. about following the trend..yes..good thinking. I was basically not planning to pick the low but accept a downside before the upside. So buy in at 1000 and expect it to go down to 950, 900 at the extreme. Your comment made me think about that one so maybe I'll revise that plan and wait until there's a technical trend upwards. About deflating assets..yes it going to happen and it is sensible to hold strong currencies/gold/solid defensive stocks and let nature take its course. So I'm only going to risk what I can tolerate. Yes i may have to bang my head against a wall a few times if I lose it all, but I won't be slashing my throat at that level. Once again, many thanks. Simon

hey, hoped to get more feedback on this idea! what's wrong with it?? If nothing why don't you all do it!! LOL

right on!! but buy on the dips ok..

I sold out of ETF Gold with a 25% profit a few weeks ago. I have £20K savings, and I've made £4000 from trading shares, corp bonds, euros etc this past year. But hey if you need money for a house, to match the price moves you need leverage..so I'm going to gamble £3000 of my profits on a single trade. I'm keeping the rest of my capital in relatively safe defensive stocks, funds and a basket of currencies. Well tell me I'm a total idiot..but this is the trade I'm planning to make in the next weeks. Deposit £3000 with my CFD dealer. Place a buy order for 20 units at 5% margin with a strike price of $1000/oz. That exposes me to $20 per point. That will cover my margin if the price drops as far as $900/oz. On the next leg up I expect gold to move up to $1500. That should make a £10,000 profit on the trade. I will be placing a trailing stop loss on the way up though for sure. This will be my first ever leveraged trade, I understand the risks but think I've a good change of making good money on it. Is this totally crazy????