Well it’s been a while since my last Spread Betting Update so apologies for that. Life took an unexpected turn and became a bit hectic for a while. I won’t bore you with all the details but things should start to return to normal again from now on, that is of course if anyone still reads this.
I have also noticed that Big Al has not updated since last Wednesday. Big Al if you’re reading this I hope all is well with you and your Spread Betting.
So what’s been happening since I spoke with you last? Well there have been a couple of new spread bets. Both of them are pyramids into existing positions. I haven’t looked for new trading opportunities for a while and neither do I intend to while I have so many trades open. The new pyramids are in Barclays and Premier foods. Both of these positions are showing varying levels of profit and had pull backs of their trends so I deemed it a good time to pyramid in.
With my Barclays position being a short I have been toying with the idea of closing the trade. Looking at the chart there seems to be a good chance of support occurring around the 260 level. Yesterday I set a limit order for 264 to take profit. This never got filled during the day and I cancelled the order at the end of the day thinking the price might spike down at the open and I would be filled at 264 missing out on further action. With the price rising up to 272 today I probably should’ve left the limit of 264 open. The price dipped at the open and 264 may have been filled. Still we live and learn.
Click image to see larger version. Image © SpreadCo
Ordinarily I wouldn’t really think about exiting a trade in this way. I prefer to keep moving stops and exit the trade when they get hit. This method of trailing stops is fine for a long position as a price and rise and rise and rise. My Barclays trade however is a short and while it’s not impossible for Barclays to go bust and fall to zero I don’t thin k it’s very likely at this point in time. Therefore I’m looking for a good place to exit the trade. I suspect todays bounce is a bounce of the 260ish support line. The question is will prices fall again or continue to rise? I think I’ll set my limit order back to 264 and be happy if it gets hit.
Ok so I think you are about up to speed now. I’ll be sending out my first monthly news letter very shortly so if you want to receive it please subscribe now. This month gives you the chance to win a prize via my new competition. If you want to know more or be in with a chance of winning the prize you need to subscribe to find out more.
Until next time,
“May the markets be with you!”
Harry,
The Spread Betting Beginner
