"Regarding your spreadbetting accounts, I was wondering if you use open orders ever or if you tend to place positions live and what you see as the advantages and disadvantages of both."

David Fuller's view Other than stops, yes I do although probably not as often as I should. However, by coincidence I just placed a number of limit orders on my largest trading position, and I will talk you through it.

Most of us are too busy to be watching the screen all day and I would rather be reading, writing or whatever. Also, screen watching can be exhausting, particularly if it includes a running personal dialogue of, 'should-I-shouldn't-I-why-didn't-I?'

I currently have 7 equal-sized units of USD/JPY in the June contract. My last rollover price for 6 of these units was ¥81.825 and I added another unit at ¥80.917, as previously stated, following the long awaited intervention. These are now protected with slightly in-the-money stops. Today, I added seven limit orders for taking profits at half-yen intervals between ¥8500 and ¥8800.

I hasten to add, there is no mathematical formula, pseudoscience, Ouija board, throwing of bones, use of birth / anniversary dates, dart board selection, shaking of snakes, invocation of gods, or other busywork methodology in selecting the target levels.

My guess is that USD/JPY will move back above ¥90 but unlike in my long-term investment account, with trading I hope to improve on a passive buy-and-hold strategy. If the position goes straight up to ¥88 or ¥90, which would be unusual, I will make money but feel like a chump. Instead, I am hoping for some ranging volatility as forex traders assess the new trend, in which case I will have an opportunity to profit additionally from a Baby Steps sell-high-buy-low strategy, by repurchasing positions sold during setbacks within the trend. Having established a limit order programme, I can adjust it at any time, should trend characteristics suggest somewhat different placements