I didn’t get time to post yesterday and I probably wont get time later to post so I’ll update you now with recent goings on and will update more tomorrow when I have more time.
Yesterday my positions in Arcandor stopped out at 16. In hindsight I jumped onto the pyramiding band wagon way too soon with this stock. I should’ve waited until it was in more of a profit before attempting it. Anyway it’s another lesson learned from this.
Today my order for premier foods executed at 22. I have gone long £3 per point with this stock. The reason being is because my stop is set 3pts below at 19 meaning a total risk of £9 which is below my £10 max risk. We’ll wait and see what happens with this trade.
With the FTSE 100 not making its mind up what it wants to do most of my stocks couldn’t yesterday either. At one point they were up then they were down then they closed the day pretty much flat. Today seems as if it may end up being the same, but there is still 4 and a half hours to go so who knows what will happen.
With Alcatel having a dip in its new potential uptrend I have placed a new order for the stock. I’ve set a buy at 232 with stops for both positions set at 220. Moving my stop locks in £29 profit from my first trade and will risk £12 on the new trade. This gives me an overall profit of £17 but I will be long at £2 per point. I’ve set the buy at 232 as this is past the most recent high and the stop at 220 as this is below the most recent low. If the price fails to hit 232 and continues to fall back to 220 the I will take the £29 profit and look for a new trade. This is my first attempt at pryamiding with what I think is sensible logic behind adding to the position. We’ll wait and see how this one pans out for me.
I will probably look to do the same with my commerzbank position but it has yet to make a dip from the recent upward move.
I’m also looking to ditch my sportingbet position as it’s not doing much. I think I will be able to put the resources it’s using to better use on other trades. The problem I have is do I just cut the loss now or wait and see if it rises to make break even or at least less of a loss. I guess I probably should just ditch it without any emotion. The whole psychology of trading is hard sometimes.
Anyway that’s all for today more tomorrow. I’ll also post about my momentum divergence strategy trades that I have placed in a demo account a few weeks ago.
Untill next time
“May the markets be with you”
