Over the last few days trading I made one new trade. I haven’t blogged about it until now as I’ve been busy with other things. The new trade is in Britvic. It’s a short trade at 415.22 £1 per point. The initial stop was quite far away at 459 but because the price dropped so rapidly I new that the super trend value would fall sharply. The stop now sits at 445 which is still too far away really but I decided to take on the additional risk as it was a super trend cross and a sell signal from Vince Stanziones system. Misys was another super trend cross & Vince stanzione signal and although the initial stop was really to far away it’s now set at just above breakeven. So far using the super trend cross & Vince Stanzione signal I’ve made two trades. We’ll wait and see how they pan out over time but so far I’m encouraged. So much so I’m looking for both the signals before I make a trade.
Misys is currently pulling back from making new highs. It almost touched 400 the other day and since then it’s been pulling back. I’m going to wait until the pull back is over and the price starts to rise again then I think I will be looking to pyramid my position. I think pyramiding my winners is the only way I’m going to start making some serious money. Winners don’t come along often enough to not pyramid into them. I need to work on my definition of a pullback/rally and get it clear when I should be pyramiding. Otherwise It’s just a bit of a hit and hope strategy, which in my experience never works.
My Premier Foods position stopped out today at 28 for a loss of £9. Yet again this was another rash trade by me trying to guess what I thought was going to happen, rather than looking at what is happening and trading accordingly. Clearly the price is in decline. If it’s a pullback then fine, but what I should’ve done is waited for the pullback to end then brought in as the price started to rise again. What I did however is try to guess that the price was going to start rising again. It’s another lesson learned the hard way, at least it only cost me £9.
Ok I think that is you all up to date with what’s been happening trading wise. I would like to remind everyone that received this months news letter that entries for the FTSE competition must be in before midnight Friday (17th June). After this you will not be able to enter and will not be eligible for this months prize which is “101 Ways to pick stock market winners” – By Clem Chambers. If you want to be in with a chance of winning there is still time to enter but you must subscribe first.
Until next time,
“May the markets be with you!”
The Spread Betting Beginner