My position in Spirent stopped out today. For whatever reason Spirent decided to rocket today and with this massive jump in price I had to exit the trade according to my strategy. I had to manually exit the trade as I could not get my Guaranteed stop with IG Index close enough to the price. In exiting manually I actually missed my exit by 2.5 points. Which makes me wonder if using guaranteed stops is really worth it? I know slippage can and will happen but in this case I don’t think I would’ve suffered it. The price has been rising steadily all day and I’m sure I would’ve been filled at 143 instead of the 145.56 I manually exited at. I think from now on I’m happy to take my chances and use non guaranteed stops. For what slippage they do occasionally incur I don’t think the extra premium and minimum stop distance are worth it. The spread betting companies get enough money out of us as it is with out paying them more for guaranteed stops. I think they should change their model on guaranteed stops. If the stop is used then you pay the extra premium, not when the stop is placed. That said I guess that doesn’t make much business sense for the spread betting firm. They would be taking all the risk of guaranteeing a stop with out necessarily getting paid. It’s a nice idea but not very practical for them.

 

I have also been trying to adjust stops where possible but with the majority of positions I have at the moment having guaranteed stops on them it’s easier said than done.

 

I was thinking to switch my Spirent position to a long position and stay in the game until the trend comes along. I decided against it for a few reasons. Firstly I’m trailing this method using Vince Stanziones system which there is no guarantee that it will work out for me and secondly I was short £0.4 per point which I can no longer achieve. Therefore I would need to switch to long at £1 per point and I want to try and keep the position size the same when trialling this new strategy. Not sure if it will work out yet but we’ll see.

 

Anyway that’s all from me for this week. Enjoy the wedding tomorrow(if that’s your thing). Me Personally I will be enjoying the weather if it’s nice not sure what we’re doing yet but I’m sure we’ll figure something out. Have a great long bank holiday weekend everyone. See you back here on Tuesday.

 

One last thing don’t forget to subscribe to my monthly news letter. It will be starting in May so subscribe now not to miss out on the first issue.

 

Until next time,
“May the markets be with you!”
Harry,
The Spread Betting Beginner

April 28, 2011 by Harry
Category: blog