Should I tighten stops on takeover targets? - January 28, 2011 by Harry

I thought I’d write a few words to round off the week. It’s been fairly quiet for me trading wise. I’ve been moving stops when I’ve had the chance and no new trades since Monday which was RBS. Today I had two stop outs they were punch taverns and Lloyds bank. Both making a loss. Lloyds lost me £7.19 and punch lost me £1.56. Not massive sums but losses never the less. Still losses are a fact of life in the trading world and I’m not disheartened. Sure I’d love to make a profit on every trade but if I did I think it would be dangerous. I’d get cocky and overconfident thinking I can’t lose, bet £100 per point and get wiped out in one trade. Nope not me, losses are fine as long as they are small, controlled and don’t happen all the time.

 

I want to respond to Spread betting traders comments about Northern foods. I know what your saying about the price tumbling if the share price falls through, I guess it depends on how worried you are about it. You suggest moving your stop tighter in case of a big price gap one morning. Well I would think if the price did gap from say 75 to 50 one morning then you will get filled at 50 irrespective of whether your stop is at 51 or 74. It will just mean you’ll suffer 24 points of slippage rather than 1 point of slippage. If you’re using guaranteed stops then slippage is not an issue and moving your stop closer is not a bad idea. I don’t know what to suggest for the best on this one, and even if I did know what to suggest for the best I can’t suggest it as that would be me giving you advice which I can’t do! I can tell you what I am going to do. I’m going to leave my stop as it is trailing at the super trend price which is 3xATR(10) away from the median price. If it gaps down so be it, it’s out of my hands, the same as if any of the other companies I have spread bets with go bust over night and I suffer massive slippage as the price drops to zero. If it happens it happens, it’s a risk we take. The only way to insure against it is use a guaranteed stop. We can also keep an eye on the news surrounding said stocks but who knows what’s going to happen. It’s for these reasons that I tend not to place too much emphasis on news stories. I used to try and trade the news like results etc but it was just too hard. I mean if a company reports good results why does there share price drop the day they are announced? Who knows? I know I don’t. That’s why now I try to stick to technical analysis an keep half an eye on the news but not too much. When I brought into Northern foods I didn’t know there was going to be take over talk and it’s turned out to be a bonus as it’s lifted the share price considerably.

 

I wanted to update you quickly with where I’m up to with the site speed issues etc. Well I think they may be fixed. I’ve made some changes and thinks seem to be going ok. I’ve not had any of the issues that I was having before so I’m hoping it’s fixed, and even without switching provider, woo hoo! ( I hope I haven’t spoke too soon there!) You may have noticed the forum members had been steadily increasing over the last few weeks. Unfortunately most of them were just SPAMMERs trying to advertise stupid things so I’ve been going through and deleting said offenders. I would be nice to have more forum members but I want people to join because they want too and have something useful to add.

 

We do have a new member who needs some help. Engulfing trader needs some help with proRealTime I will try and get some time over the weekend to help out but if anyone else can help him please do.

 

I think that’s about all from me. Hopefully next week I’ll post a bit more than twice as I’ve had a really busy week. Still I rather post less with more interesting stuff than more often with a load of drivel.

 

Have a great weekend everyone.

 

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

Owner of Harry Ramsdens (Boparan) Bids for Northern Foods - January 24, 2011 by Harry

It’s been a busy day for me trading wise today. My position in Allied Irish bank stopped out for a £9 loss today. Silly trade really with hindsight. No real strategy behind it and yet again I’ve paid the price. Still we live and learn. One new trade today. I brought RBS at 43.525 with a stop at 39, and I’m long £2 per point. Well with my stop so close £2 per point is within my 1% risk tolerance for the trade so I figured I should go for it. It’s a super trend cross over buy and with a recent double bottom in price and I like the look of the chart, the only way is up. Here’s hoping it pans out.

 

Northern foods shot up today after the owner of Harry Ramsdens (Boparan)made a 73p per share cash bid. Good news for me. As far as I’m concerned Greencore and Boparan can battle it out up to £30 a share or more. Ever the optimist hey! You can read more about why Northern foods increased so much on yahoo Finance.

 

I’m still trying to resolve the slow site issues and have removed the forum updates from the main page. I think the forum is slowing down the site for some reason and this would also slow the main page because it contained the updates from the forum. When I have the problem sorted I’ll try and get them added.

 

For the last few weeks/months I’ve been posting almost every trading day. Well I have decided to tone this down for a while. Don’t worry, I’ll keep you updated with all my trades but I will only be posting when something exciting happens, like a new trade or stop out has occurred. The reason being is it will give me a little extra time to spend doing other things. Firstly I’ll be fixing the issues with the site that need to be addressed as top priority and it will also give me more time to spend in the forum and adding more relevant content to the site. When I get these things done and I start to have more time I will probably go back to posting on a daily basis, but until then it will only be if I have something good to write about, rather than the drivel I’ve been writing about lately. I hope you understand this and please do bare with me. Time is really tight these days!

 

Over the next few days can people let me know if they are still having speed issues with the site and when and where they are occurring. You can either e-mail me or post over on the forum in the website feedback section. Any details you can give me will help me greatly in resolving these issues. Thanks for your continued patience and support.

 

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

Issues with the Spread Betting Forum - January 21, 2011 by Harry

A really quick post today. No new trades and I didn’t get to move any stops last night. Hardly surprising since the whole market fell. It does beg the question are the bears becoming stronger than the bulls?

 

I would like to take this chance to apologise to anyone who’s experiencing problems with the forum. If you are please e-mail me. I especially want to apologise to offthelip. Thanks again for e-mailing me and I’ve updated the forum with your post.

 

I know Big Al didn’t post yesterday. Big Al if you too had issues with the forum please let me know so I have more evidence to hit my hosting provider with.

 

I had another 30min+ phone conversation with my hosting provider and they indeed found an issue there end which they are working to resolve. If the problem persists then I shall be forced to change my hosting company. I know this probably doesn’t mean much to most of you but believe me if I have to change it will be a bit of a headache for me. Still if it has to be done it has to be done. I’ll let you know more when I know it.

 

That’s all for this week. I hope you’ve had a good weeks trading and have a great weekend everybody.

 

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

Developing A New Spread Betting Strategy Continues - January 20, 2011 by Harry

Not great deal to report on the trading front. My position in 3i Infrastructure stopped out at 116 giving my a whopping £1.31 profit. When you figure the position had been open for around 3 months it works out to pretty much £0 with the rolling charges. Still at least it’s not loss.

 

I finally got some time today to summarize where we are up to with developing a new spread betting strategy over on the forum. Take a look and post a reply if you have anything to add or suggest. If your new to the forum then please register and join in the discussion. I’ve noticed we’ve had some new members on the forum of late. I wish I could say they were all genuine but, it seems a few of them are spammers. Still they’ve received and instant ban over my no SPAM policy. I don’t mind people linking to other sites etc as long as it’s relevant to spread betting. Then again I guess some of the drugs one person was trying to link too might come in useful if your stressed about your spread betting not going well, and I’m sure Ugg boots are not relevant to spread betting. Still there only wasting there own time. If you spot any SPAM on the forum before I do please let me know. The filters I have tend to catch most of it but you never know.

 

I think the forum is the reason behind the site being slow. I’m not 100% sure why yet but I’m going to speak to my hosting provider again today about some of the error messages I have in my logs to get the issues resolved. With the main page of the site having a feed from the forum this would certainly affect the speed of the main page and the forum. The rest of the site should be fine and to be honest I’ve never noticed any speed issues with any of the other pages. Please let me know if you have noticed otherwise.

 

No new trades today again. I took a look earlier and there is nothing that fits my strategy. So I playing the waiting game until the right opportunity comes along. I think it’s a game I’m starting to get good at.

 

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

Yell stopped out for a slight profit - January 18, 2011 by Harry

As I suspected I’ve not had an opportunity to look for new trades today, hopefully tomorrow will be better. My position in Yell stopped out today for a £2 profit. Better than a loss I suppose.

 

With nothing much else to report I stumbled across some more detail about the guaranteed stops that Capital Spreads, Tradefair, Tdwaterhouse and possibly paddy power trader now offer. I’ve scanned the documet very briefly earlier today and there is that much information, I couldn’t take it all in. If your interested in learning more about the guaranteed stops you can read all about them on the London Capital Group website.

 

One final note, I would like to say how impressed I am with BigAls trading diary. I wish I could triple my money in less than a year. Keep up the good work Big Al. It’s nice to know that someone is making some money spread betting. Big Al also posts his latest trades which you can see on BigAls latest trades page. He also documents his progress in his daily forum posts, which you can read over on the spread betting forum. How I said keep up the good work Big Al.

 

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

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