Buying Yell - February 9, 2011 by Harry

I’ve made a new trade. Woo Hoo! It’s a new trade in Yell at a whopping £4 per point. It quite possibly be the biggest £ per point trade I’ve ever made. So I brought at 10.5p with a stop set at 8p. It’s a support level buy as the lowest low of yell was around 9.8p so a stop at 8p should more than cover it. This gives me a risk of £10 which is within my 1% risk tolerance. When the position starts to move into profit I shall be trailing my stop at 3*ATR(10). The current value is 0.67 so 3*0.67 = 2.01. Obviously this will fluctuate on a daily basis so I will be updating my stop accordingly along the way. What I will be doing is rounding down to the nearest whole 0.5 point for trailing my stop. So If my new stop level should be 9.3 the I will set it at 9p. If it’s 9.8p then 9.5p and so on. I’ve decided to do this as in my super tend strategy I do something similar but I round up or down to the nearest whole number. Because I’m long £4 per point I decided to make the 0.5 number to hopefully lock in more profits along the way.

 

Other than that not much else has been happening. Most of my open positions are showing some form of profit although some of them have none locked in yet. My best open position is in Northern foods. This is showing a £24 locked in profit which is nearly 5:1 reward to risk. I only wish off the lip had posted his comments earlier on ‘Meaningful position sizing and reducing risk’ and I would’ve been at £2 per point and made £48 instead of £24. Still we live and learn. That’s why I’m £4 per point on yell. I’m making the most of my 1% risk tolerance to make the most reward I possibly can. Hopefully It will work out.

 

Off the lip don’t worry about the back testing of the new spread betting strategy. There is no rush, whenever you get the time will be fine with us. If there is anything I can do to help you with it let me know and I’ll do my best. That said time is tight as always for me but I’ll do my best to help out.

 

Ok that’s all from me. I do have one request if anyone has a spare minute or two. Please add a review of your spread betting company. At the moment it’s dominated by reviews from me and it looks a little empty. The more reviews we can get on there the better and you never know it might just help some new to the spread betting world make an informed decision about which company to choose.

 

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

A new rumour! - December 3, 2010 by Harry

Not a bad day in the markets today. It would seem that the FTSE is digesting the last two days of strong gains. It was pretty flat for most of the day. Most of my positions rose again today some more than others. My persimmon position rose to nearly 390 putting my position just under £50 in profit. I had a flash back to days of old today. In the past I would’ve sold out of the position only for it to continue rising. I really had to restrain myself today from making the same old mistake. It was only the though of people reading this blog that stopped me. If I had reported that I sold out of my position without any real reason then I feel you may have been disappointed. It was that though that stopped me selling out. That said the price dropped back to 380ish so it may have been a wise move to sell out. Still I didn’t know that at the time.

 

Ideally I want Persimmon to continue rising and I want to be in on it. Therefore I’m using a trailing stop to take care of when I exit the trade. Last time I used a 1.5xATR(14) trailing stop. It stopped me out making a profit of around 15pts which was roughly 1.5x my initial risk. I was thinking to use the same trailing stop this time but I’m really not that sure what to do. I did work last time as it stopped me out when the price continued to fall which enabled me to buy back in at the same buy in price as before. I think I will do the same this time. I’m going to use a 1.5xATR(10) though instead of a ATR(14). This is because my super trend strategy use the 10 ATR and it seems to be working quite nicely.

 

I’ve made on new trade today. Premier foods crossed the super trend yesterday and I brought in at 18.3. The super trend stop is currently 15.06 which means (according to my strategy) I’ll place my stop at 14. It’s also recently bounced off support at 16 so could this be the start of a new rise for the stock? Who knows. Oh did I mention there is a rumour going round about a take over bid for premier foods? What, it might work!

 

Well that’s about all from me for this week. I’m going to see if I can move stops later and look for some new trades. If there are any new potential trades I might post them over the weekend. Depends if I get the time or not.

 

Anyway, If I don’t post over the weekend I hope you have a good one.

 

Until next time,
“May the markets be with you!”
Spread betting beginner

Mid Morning Matters with Alan Partridge - November 12, 2010 by Harry

Well after a rocky start to the day it would seem that the FTSE will be possibly be closing around the same price it opened. With the sharp drop in the FTSE this morning came the inevitable stop outs. Although I only had one stop out, persimmon stopped at my level of 354.63 precisely, no slippage this time. The price has recovered some since then and is currently around 357. If it continues to rise from here then so be. Another opportunity will be along shortly. I am thinking to place the same buy order for persimmon again. It would seem the support zone I identified held up and could do so again. I’ll have a think over the weekend and see what I want to do.

 

My order for yell executed this morning, I did suffer some slight slippage here although this time it’s in my favour. I set my buy order for 10p and it was filled at 9.996. That’s right I saved 0.004p. Get in!. Which at £1 per point is £0.004. I really don’t understand why the spread betting firm have such accurate pricing. I guess if your trading at £10 or even the maximum £60 per point on yell then it makes a bit of difference. If you can afford to trade at £60 per point on a spread bet are you really going to be bothered about £0.24. Probably not. Anyway I digress, So Yell kicked in at 10p with a stop set at 2p, so £8 risk. It’s not super trend buy I’ve just bought it because it looks very cheap, more of punt, which is why I will be tightening my stop when I get the chance. I will probably look to trail at some factor of ATR(14) probably 2x. You can check my open trades later to see what the new stop level will be. I don’t even know it myself yet.

 

F&C and Debenhams came tantalisingly close to pyramiding today. F&C is set to buy at 72 and Debenhams is set to buy at 70. These are both within 5% of the super trend stop which is part of my super trend strategy. I’ll try and get this finished/typed up at the weekend so I can add it to the strategies section. Just depends if I get time or not.

 

Thanks to Stevie and Spread betting trader for leaving comments. Stevie I’ve answered your question over on the forum. I know I keep pushing the forum but please do join. It’s a great way to share your experiences and information and also learn about others experiences and mistakes so we can all avoid making the same ones.

 

On a complete side note to all things trading I was cheered up when I seen that Alan Partridge has a new online series sponsored by Fosters beer. I don’t know if you like Alan Partridge but I loved the two TV series. The new series doesn’t seem as good as the TV series but it’s still funny in parts. The video should be below if you fancy watching it.

 

 

That’s all from me. I’m not sure if I’ll get chance to update over the weekend, just depends if I get time or not.

 

Have a great weekend everyone.

 

 

Until next time,
“May the markets be with you!”
Spread betting beginner

What will Yell do? - November 9, 2010 by Harry

Another fairly quiet day today on the trading front. It’s sods law that I sold out of my bank of Ireland position yesterday at pretty much the low of the day. Still I’m out of it now and that’s that. There will be other opportunities.

 

My Yell position stopped out today at 12.74. Another example of slippage in action although this time it was a lot less drastic than when it happened to me with EAGA. Persimmon is ticking over nicely. As I write this it’s currently around 372. If it stays this way until the end of the day I will be able to move my stop on the position. I’m currently employing a 1.5x ATR(14) trailing stop. Last time I checked this put my stop around 17.5 points away from price. It may have changed as the ATR is calculated based on the price movements. Still We’ll see what happens at the end of the day. I can’t tell you what the new stop level might be but you can always check my open trades for the latest figures.

 

I’m not sure what to do about Yell at the moment. I quite fancy it as a potential riser. I think I may hold fire. Possibly place an order to buy at 10p with a stop set at 0. Don’t know yet. I’ll have a think and see what I want to do over the next few days.

 

Most of my other positions aren’t upto that much. F&C are up a few points so I may be looking to move my stop on them again later. All the others seem to be treading water at the moment, which is fine as long as they shoot upwards afterwards 😉

 

Thanks to bigAl60 for his latest update on the forum. It will be interesting to follow a fellow spread bettor to see how it pans out for him over the coming months.

 

I have also started a couple of new topics on the forum myself. They relate to Spread betting strategy development and spread betting tips that you can share with others. When I say spread betting tips I’m not talking BUY BP @ 350p more useful tips and tricks that you have learnt on your own spread betting journey. My goal for both of these topics is to eventually turn them into extra content for the site so all new comers or “Spread betting beginners” can learn from our collective experiences. So if you do get chance please take a look and add whatever extras you want to.

 

Reading Tony Lotons blog I see he has also spotted spread betting traders blog. It will be very interesting to see how it pans out over the next few months. I’m sure Tony himself will be watching with an eager eye.

 

Spread betting DVDs

 

 

 

Until next time,
“May the markets be with you!”
Spread betting beginner

Stop loss based on ATR - November 5, 2010 by Harry

Well it’s the end of another week. Is it just me or does time really seem to fly past these days. It’ll be Christmas before you know it! I must be getting old I think.

 

On to the matter of trading. I had an old order execute today. I’m not sure if I posted about it a while ago but I placed an order for the bank of Ireland. Buy at 44 stop at 34. I identified a possible support level dating back to march 2009. The thing is looking at the chart now I’m not so sure about the trade. The support level doesn’t look strong enough to bounce off. With this in mind I think I will probably look to exit the trade as soon as I can on Monday morning.

 

You’ll be glad to hear that I have come up with a solution to my stop issues for persimmon. I have decided to employ a trailing stop at 1.5x ATR(14). When I decided this the price of persimmon was around the same as the open price so I moved my stop accordingly. You can see my new stop level on my spread betting trades page.

 

When the day started I thought it was going to be another good day of gains for persimmon with it heading up to around 371. Sadly the day did not finish how it started and the position ended up closing the day slightly down. Still the position is still open and Monday is another trading day so anything can happen.

 

That’s really all from me for today. I hope everyone has a good weekend.
I may make further updates to the site over the weekend so keep checking back to see what’s new.

 

 

Until next time,
“May the markets be with you!”
Spread betting beginner

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