After yesterdays good day for my spread bets today started off not so well. With most of yesterdays profits wiped out I was nervous. So I did the only thing that I could do and that was to leave my positions alone. They have stops associated with them for a reasons and if they don’t pan out then so be it. In days of old I would’ve been tempted to interfere and would’ve ended up making a mistake I would later come to regret. Take my position in ARM holdings last year for example. I exited the trade to free up some funds taking a meagre £30 profit. Now this was in February last year. If you don’t believe me check out one of my old blog entries from back then you can clearly see the position was opened in 12/2/2010. If I could’ve stayed on this trend until a few months ago and avoided some of the recent turbulence I would’ve made a nice 400 points profit. Now I know hindsight is a wonderful thing it’s more than likely that I would’ve been stopped out before capturing 400 points but my point is If I hadn’t meddled with the trade then I would’ve ended up with more profit than just 30 points. My motto now is to plan the trade and trade the plan. Let the trades take care of themselves.
I have actually interfered slightly with one trade. I decided to pyramid into my Barclays position again. I took a look at the chart and a nice down trend is developing. With a nice rally over the last few days I decided that it could be an ideal time to sell into the trade again. I went short at 281.91 with at stop set at 311. This stop should not get hit as my exit signal will occur before. The one thing I do need to be wary of with this trade is there is a strong support line around the 260 mark. I think as the trade approaches this point I may tighten my stop as a precaution.
That’s all for this week. I hope you all had a good trading week and I’ll see you back here Monday. Have a great weekend everyone.
Until next time,
“May the markets be with you!”
Harry,
The Spread Betting Beginner
