Not so long ago I edited a book (not this one) for a guy who postulated that one sure way to make money in the markets is to bet against the recommendations of a particular investment bank; not straight away, but a few weeks later.
Yes, the share price more than halved within an hour. And at one point the bid-ask spread was quoted by some spread betting companies as wide as 16.9-45.1, down from a previous day’s price of about 100.I was lucky enough to have sold half of my SIPP holding in Centamin a week ago at 99, and possibly even luckier that my other half stopped-out this morning at a respectable (under the circumstances) 87p. These lucky escapes are what makes this my “trade of the week”.If you had a Centamin position in a spread betting account, I do hope that you had a profit-securing guaranteed stop order in place to protect you. I admit to taking a long punt on the gapped-down price this morning, at a price of 65, just before it gapped-down again to less than 40. So I was glad of my guaranteed stop order at 53. Remember that the best guaranteed stop orders are provided by Capital Spreads, InterTrader, IG… and possibly Spread Co and SpreadEx.