Another super trend buy - November 18, 2010 by Harry

Well with the FTSE rebounding a bit today because of the bail out of the Irish republic it’s not been a bad day for my stocks. My pyramids in Debenhams and F & C Asset management are both showing a small profit. Obviously it’s not the end of the day yet so that could still change.

 

I had a little time today to look for new trades and I have made one new trade. I’ve gone long on Vodafone £1 per point at 168.175 with a stop set at 163.13. I was originally going to set my stop at 164 but when I entered the trade in my order ticket this was the stop position it gave me and I couldn’t be bothered to change it. This is not a super trend cross buy but it is a close to super trend stop buy. It’s basically the same as the strategy I’ve used for 3i infrastructure, Northern Foods etc. Essentially it’s the same conditions in which I would pyramid into an existing position except I don’t have any profit locked in. Also my stop value is below the super trend stop price initially with a view to move this as the position moves into profit. If you take a look at the chart for Vodafone I’m sure you will agree that visually the chart shows a strong uptrend recently. My aim is to get a piece of this continued upward move.

 

If you’ve read Malcolm Pryors The Financial Spread Betting Handbook: A Guide to Making Money Trading Spread Bets, you will be aware he details some trend following strategies and to enter on pull backs and rallies, depending if up or down trend. Identifying a pull back was always part of the strategy that I struggled with. I think using the super trend indicator is quite a neat solution to this.

 

I really like the super trend indicator and you can read my notes on it’s construction here. I’ve tried my best to explain each line of the code and give a general overview of how it works. I don’t know if I’ve done a great job but if there is anything you don’t understand or isn’t clear please let me know and I’ll to my best to explain it clearer.

 

I’ll probably try and add more on ATR at some point soon, as well as adding more on technical analysis and other indicators etc. There is so much I want to add but I just don’t get the time. I wish I could do this full time but unfortunately I have bills to pay, as we all do, and it’s the day job that covers those for the time being.

 

Since I’ve had no response about my Northern Foods question on the forum I posted the same question on the spread betting central forum. It would seem that no one really knows quite what happens here so I’ll have to e-mail my spread betting firm (CMC markets) to find out. I’ll let you know more when I know more.

 

I don’t know if any of you have heard of Martin Lewis, the “Money Saving Expert”, but he’s uncovered hidden links to heavily discounted products on Amazon. The discounts vary but apparently they are anything from 15% to 99%. I’ve selected some of the best categories that you might be interested in. I thought with Christmas not that far away some of these could come in handy. Anyway take a look by clicking on the links below.

 

There are more categories, if you want me to list them all I can. Just let me know.

 

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

Another spread betting lesson learned the hard way! - November 8, 2010 by Harry

Not a great start to the day today. I wanted to exit my position in Bank of Ireland as soon as I could. The earliest opportunity I got to do this was just after 9:30 this morning. Knowing what I am like I decided not to exit the trade straight away, I decided that I would move my stop as close as I could. This way it takes any emotion out of it for me. If I had to click the sell button I probably would’ve ended up watching the price slide all the way to my original stop hopping that it would recover and I would make less of a loss.

 

The price I got for the order was 37.39. The stop was hit shortly after I made the change. I lost £6.61 on the trade. Still it’s another lesson. I shouldn’t just place orders and forget about them, and I should check, check and check again that I am sure there is a valid reason for the trade. Looking back now I don’t know what I was thinking when I placed the trade.

 

All that said I have placed a new order for the bank of Ireland. This time it’s a buy at 14 with a stop set at 6. I will be monitoring this and if it hasn’t executed within a month(4 weeks) the I will close the order.

 

I’ve made two new trades today. Buy Yell at 16.422 with a stop at 13, and Buy Taylor Wimpey at 26.13 with a stop at 21. These are both super trend cross over buys. We’ll see how they pan out.

 

I noticed today that Malcolm Pryor on Short Term Spread Betting: Winning Strategies for Active Traders DVD is available for under £200. Also you can pre order Malcolms new DVD Entry Level Spread Betting Strategies which is just over £200. I mention this because the sub £200 price tag is cheaper than if you buy it from spread betting central. I’ve also added these to my reading list page so if you fancy ordering them at a later date you can from there.

 

You may have noticed over the weekend that I added a new link to my useful sites list. spread betting trader is running a very interesting experiment over on his blog. On which I’m sure Tony Loton will be very interested in. He’s running two accounts. On of which he trades based on his professional tips he receives the other he is trading according to Tonys position trading strategy. It will be interesting to see how it pans out for him. I know I will be watching with an eager eye.

 

Spread betting DVDs

 

 

Oh I almost forgot to mention the new spread betting forum is up and running. BigAl asked a question on there about the IGindex trading platform. I did my best to help him out but not having a real account with them I think someone else might be better suited to help him.

 

 

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

How to become a millionaire! - November 1, 2010 by Harry

Well it looks like all our prayers have been answered. Vince Stanzione is going to make us all millionaires. All we need to do is invest £197 in his trading system.

 

I was reading a forum post over on spread betting central and I seen Vince himself has posted and included a link to his winning formula website. Now I can’t really pass comment on his trading system and I’m sure he’s made more money spread betting than I can ever dream of making, but all these trading system sites look the same too me. No offense to Vince but the design of all these sites just screams rip off. Also if Vince has made the millions that he claims why does he need to charge £197 for his trading system? Why not just keep making millions and millions spread betting? Or why not give away the information for free and do some other people some good since he has more than enough money any way.

 

Sorry for the rant, it just those sort of sites are all the same. It starts with an introduction, then its explains how you can do the same. Then it’s all the reports of other people copying them and making huge sums of money. Then come the copies of bank statements showing us proof of the money. Then the videos of all the people that have copied them and made a 90% return in a couple of months. The thing is they leave out all the bad parts. What about the people that have lost 90% in a couple of months , well it’s probably because they didn’t follow the system properly, right!

 

If I personally had made millions from spread betting I would share how I did it. You never know you could be witnessing the very start of that story. Not very probably but certainly possible.

 

Anyway enough about all that back to the business of trading. You may remember I said on Friday that I tried to move money from my old CMC account to my new one. Well for whatever reason they couldn’t do it and they still haven’t so my persimmon order didn’t exectue at my price of 341 because of lack of funds in the new account. I opened it in my old CMC account at 339.25. Saving myself a whopping £1.75. Still it’s a saving at least. My stop is still set for 331 so I’m only risking 8.25 rather than the £10 originally planned.

 

All my other positions are taking care of themselves. Debenhams has dropped back a little but EAGA is ticking up nicely. Interestingly I’ve just checked the chart for Persimmon and 339.25 is the same low price that was hit on 20/8/10, maybe it’s fate, or probably just pure luck.

 

I’m trying a fixed price trailing stop on EAGA currently set to 6pts. I’m keeping it tight for now until the position moves more into profit. I think I may look to employ a trailing stop based on ATR possibly 1.5x the ATR(14). I’ll leave it as it is for now and take a view on this over the next few days.

 

UPDATE: I’ve been looking at my open positions page (Which I’ve renamed spread betting trades). I think the new name makes more sense. Anyway, I’m not sure if I’ve done the right thing regarding the stop value. I am currently updating this when I move my stops. Should I just leave this as the original stop level? This way it will be possible to see the initial risk and the final P/L rather than just the final P/L? What do people think it’s best for me to do here? Please let me know. You can either leave me a comment below or contact me. Thanks!

 

ANOTHER UPDATE: I’ve only just noticed that bigAl60 has started his trading journal over on the forum. Incase you haven’t read it you can check it out here. If you want to reply or add a comment to his post then you will need to register here. Please do read his journal. It makes better reading than my trading at the moment!

 

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

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