Since nobody likes to see a losing trade (whatever you argue to the contrary) I have supplemented this week’s original “trade of the week” with this one featuring gold miner Petropavlovsk. Here’s what the result of the opened-and-closed trade looked like with IG Index… and I must remember to start calling them simply “IG”:
Over on one of the Capital Spreads sister brands (same platform, but a different brand name) I also trailed my guaranteed stop order quite aggressively as tight as it would go, but (from memory) the mandatory minimum stop distance was wider so I haven’t stopped out at all… yet. In the following chart, the lower and upper horizontal line annotations show my entry level and guaranteed stop order level respectively.
If memory serves me correctly, the only difference between these two trades that could have led to the different outcomes — one stopped out at a profit, and one still running — is the difference between the mandatory minimum distances on the guaranteed stop orders. This is one of the reasons I run more than one spread betting account; because different accounts can be attractive for different trades.
In this case IG stopped me out too soon, or did they? My £67 banked profit may yet turn out to be higher than the eventual profit I bank in my Capital Spreads-like (it could also have been InterTrader) account. Whichever way you look at it: a banked profit of £67 in one account and a guaranteed profit of at least £58 in the other account is a nice result for this position trade.
I’m once again a bid fan of “guaranteed” stop orders, so I was pleased to receive an email from ETX Capital to say that from Monday 24 September I would be able to use them on their platform too.
Disclaimer: this posting is for general education only; it is not trading advice.