Delighted to report that I am ending the week clawing back more of my losses on the FTSE cocked-up stop-loss trade (see below).

I called the Dow correctly, and have taken 100 points on its Friday night falter.

However, this drop has already been priced into the Nikkei 225 - this week’s earlier benefactor - so I shan’t be going short, after all.

Have a good weekend everyone!

HURRAH! The drains under my house have been mended, and life is sweet, once more.

Except that once my internet connection was restored, I had a BIG, BIG shock. I was losing over £600 on a £1.50 a point but trade on the FTSE August.

“How could this have happened?” The neighbours three doors down the street must have heard my screams of disgust, when I saw what had happened to my account balance.

I see the Wise Ones amongst you sadly shaking their heads. “Oh, Sally,” you lament. “You keep banging on about the importance of using a stop loss on your trades. How come you don’t follow your own advice.”

Right?

Wrong!

What actually happened is even more tragic than neglecting to protect my capital.

Before packing up my office to get the poxy drains mended, I had - of course - adjusted my stop loss on this trade… except that in my haste, I had hit the wrong computer keys, and put it on at 5180 when of course I meant 6580.

I immediately closed £1 of the trade for a loss of £374.

However, all was not entirely lost. The DOW had also been sinking like a stone on Monday, so I placed a £1 sell trade on the Nikkei, hoping it would follow suit.

I slept all night with my fingers crossed. And it worked! Tuesday morning dawned and I had clawed back £327. I felt better.

That was on Monday, and it’s now Friday afternoon. I’m waiting to see if the DOW does an end-of-week plummet, and if it does, I’ll be back shorting the Nikkei.

So that’s my sad story for the week.

An even sorrier one for Max E, who writes:

“Sally, I finally got hold Bets last night, and I thought it was fantastic! So good, in fact, I couldn’t put it down until I had finished.

So I’m blaming you for my late night and feeling so tired today.

If I only take one thing from the book it would be stop loss! Although my recent trading should have taught me that. I have been wiped out. I was longing the FTSE during the crash on thursday and kept putting more in hoping it would bounce back. My account had been built up to about £900 over five months from about £600.”

My condolences to Max. And I feature his story because:

1. I made exactly the same mistake last year, when there was a sharp drop in the market. Couldn’t believe what was happening. Sat waiting for a reversal, instead of shorting the what-was-in-my-drains out of the market.

2. Once you’ve put on your stop loss (and checked you have the correct figures), never, never, never, never, NEVER add to a losing position. NEVER. It’s a suicide strategy.

On a happier note, Barry E reports:

“My trading is going well. I have only been trading binary trades and have made about £1500 in three weeks, and only had two days which ended in a loss, one of which was because my Internet went down so I couldn’t get my money back, stupid Internet. I’m trying to stop myself trading more money while I’m still a pup at all this, but the dreams are taking over my head.”

Well done Barry. As regular readers know, binaries are one of my favourite trades. But I do think it’s ESSENTIAL to be at your computer to monitor your trade non-stop, as even a quick trip to the loo can prove hideously expensive if there’s a sudden spike in the market.