As the markets have risen a littl today so have some of my positions. My position in Dexion stopped out today so I took a £5.60 hit on that one. Looking back at the trade I should never have placed it. With the stock pulling back from a recent uptrend and having formed a round top I should’ve known better than to place this order in the first place. The Idea of buying momentum divergence is to try and catch the bottom of a recent down trend.
Interestingly looking at Dexion on my spread betting companies chart it was showing some momentum divergence at the end of march but in this case it would’ve been a selling trade. If I had placed the trade then the I would be moving my stop to lock in a small profit this week as it just passed the 2* initial risk mark. Anyway to sum up I need to look at the chart a bit more before placing my trades and look for any conflicting information. I’ve learnt another valuable lesson from this trade and it’s one I don’t intend to repeat.
I’ll try to post an update to my account valuation tomorrow and my FTSE analysis and any new trades for the week. The Football is on tomorrow so I may not get that much time so part of it may be on Sunday. I’ll also try and respond to Alan & Tonys comments they left earlier in the week.
Anyway that’s all from me today.
Untill next time
“May the markets be with you”
“Come on ENGLAND!”