Sorry for no post yesterday. I had to work late then we went out for the evening so I had no chance to update. There wasn’t much to report anyway. No new trades, moved a couple of stops according to the super trend indicator. Debenhams and Rentokil are now both near break even. This is the one thing I really like about the super trend indicator is the fact that it gives you a dynamic stop level. As I’ve mentioned before I’m a fan of Tony Lotons position trading strategy and highly recommend reading his book, but the part which I have struggled the most with is when to move my stops and where to move them too. I’m sure with more experience it may all become clear but for the novice I think the super trend indicator offers a solution to this problem.
It’s still very early days to say if this approach is going to work for me but the early indication is good. I’ve had a look for new trades today and one that caught my eye was Arriva. The proRealtime chart shows it trading at 773 with a super trend stop at 769. Price soared back in march, I think because they were taken over by Deutsche Bahn and has been consolidating ever since. I would quite fancy this as it could possibly break out of the consolidation range and go higher. It could also go the other way but I would set a atop at 765 so only risking £8 at £1 per point. I went to my spread betting platform to place the trade (CMC markets) and the spread for some reason(at the time of writing) is 45pts. This is massive and there is no way I will place the trade at this spread. I check with my other accounts and they don’t seem to offer Arriva so this is a trade I will pass on for now.
Thanks to Anon who commented on my dimension data trade. You could be right about there being little chance of any movement there but the price will move at some point and for the £5 risk I think it’s worth taking a chance on. You never know they may have some announcement etc that moves the price up or down, the problem is no one knows. Anyway thanks for the comment it’s appreciated as always.
Until next time
“May the markets be with you”
Spread Betting Beginner