With today being a slow day at work I am feeling a bit bored. These are usually the moset dangerous times for me. I have, in the past, attempted to trade the FTSE when I have felt like this which is part of how I ended up losing so much money to date. This is a mistake that I don’t intend to repeat.
With the FTSE 100 down slightly today most of my positions are too. I was surprised yesterday my Commerz Bank position closed the day flat. At one point it was down around 10pts but managed to recover. Today however seems as if it will be a different story. It looks like my positon will close the day down. I suspect we may be through the worst of the current dip we are experiencing so I am considering to pyramid my commerz bank position. If I do I will buy at 605 with stops on both positions set to 595. This will lock in a pofit of 55 on my original position and risk 10 on the new position. If the worst should happen and my stop is tirggered then I will stand to take a £45 profit from the trade. With an initial risk of £12 thats a risk- reward ratio of 1:3.75. That’s not bad going so I would be happy with that.
I am still watching BP. As it stands it’s currently up today. I’m not 100% convinced the price will not go lower. I think I will keep watching and waiting until I feel the time is right, if that ever comes.
Thanks to Tony & Alan for there comments on yesterdays post. They are much appreciated as always. It’s nice to know that someone reads this blog.
I think Alan has an interesting approach to a possible purchase in BP. With a Limit Buy set to 400 with a 20pt stop and reducing the buy price as the current price falls. I will be interested to see how this pans out over time for you. I would be slightly careful especially with a buy around 400. Even numbers like 400, 450 etc sometimes offer as support and resistance regions. The reasoing behind this is how often do you hear people say “If price gets back to 400 I’ll sell” or “If price drops to 300 I’ll buy”. Round numbers are logical buy and sell positions for most people which makes them possible support/resistance regions. I say regions as what I have found usually happens is price will rise to 400 pass 400 to say 405 or 410 before coming back down through the 400.
All that said I am not offering any advice here, I am merely sharing some of my experience.
Other news, My alcatel lucent position is holding it’s head above water. With the price currently around 227 it’s 7pts away from my stop. The plan here is as the markets start to rise in the next few days (possibly) this position will rise along with them. Again we’ll wait and see what happens.
That’s all from me today
Football is on in a couple of hours. I wonder if England will qualify to the next round? They seem to be as unpredictable as the markets at the minute.
Until next time
“May the markets be with you”
Spread Betting Beginner
Don’t take my posting here as a trade recommendation. The information contained within this blog is for educational purposes only and should not be taken as advice of any kind. The author of this blog will not accept any responsibily for any loss made by anyone acting or refraining to act as a result of reading material contained within this blog.