Well…. I managed to get out of my Dow-will-rise-on-Inauguration-optimism without too much trouble. Even though the market had the temerity to do the Wrong Thing, I was protected by my stop loss.

Which brings me to Million Dollar Traders.

I’ve only watched one-and-a-bit episodes so far (the rest awaits on Sky+), and have to confess I’ve enjoyed it. My greatest hope is that the new traders will somehow manage to lose every penny they’ve been given by Lex Van DammitI’mSmug and his dodgy sidekick, Anton. I’m sure they won’t, because television’s just not like that.

But it struck me during episode one, that the volunteers had been set up for a fall. Whatever their training consisted of, it certainly seemed to have skipped the bit on money management.

In spread betting terms, this means not saying to yourself, “I always trade £1 a point, and that’s what I stick to.”

That doesn’t work.

How come?

Because the markets move at such different speeds. (Here comes the science bit…. that’s called relative volatility.)

Stick £1 a point on £/$, Gold or the Nikkei…. and you can easily win - or lose! - hundreds of pounds in an hour, let alone a day.

Whereas you go £1 a point on the DSG group (Dixons), the win/lose amount moves at the speed of a snail.

So let’s suppose you’ve decided the most you’re prepared to risk on DSG is £50. You’ll buy at 20.00. And have a stop loss at 15.00. In which case, you enter the market at £10 a point.

Equally, if you go £10 a point on the Nikkei, you’re either awfully rich, your name is Lex Van DammitI’mSmug, or you pressed the wrong button.

A quick little post.

We’ll have a new President of the USA in ninety minutes from now. Which means that as well as watching the Washington pomp and ceremony, I’ll also be monitoring the Dow.

I’ve just bought the Wall Street Rolling Spread on Finspreads at 8158. Feegood factor and all that. If it goes (much) below 8095, I’m out.

Stop loss already in place.

My impressions of Million Dollar Traders soon!

Happy New Year to all my readers!

Not that there’s been anything much for you to read for the past couple of months, while I’ve been firmly focused on the new book. (The end is finally in sight!)

I’ve managed to keep up - more or less - with all the email queries you send. But my trades have been few and far between. These days, I only trade when I’m able to pay proper attention to the markets. Which means, of course, that every time I take a look, I’m spitting feathers at all the ‘dead certs’ I’m missing.

Yeah, right.

Although I’m compelled to report that I traded profitably in 2008.

At the moment, I’m building up a position on DSG Group (Dixons). A sell. Currently losing me £139.80. Will keep it going till results come out later in the week, and then most likely take a profit or look to minimise my losses.

Meanwhile, I’m looking forward to BBC2’s new series, Million Dollar Traders, which kicks off in half an hour or so.

I had ‘advance notice’ of this venture into telly trading from one of my regular correspondents, Judy D. She auditioned, but failed to make the cut. Judy reckons the programme is aiming to replicate the famous Turtle Traders - basically the theory is that anyone can be taught to make money in the markets, so long as they’re capable of following strict rules.

Will trading make good television? A suitable curtain-raiser to tonight’s Celeb Big Brother (if only the rumours that Nancy Dell’olio is about to be parachuted in for a face-off with Ulrika were true…)?

Let’s see what we think. I’ll give you my review soon.