Way back on 16 August I used my position(s) in Trinity Mirror to demonstrate How to Average Down (Safely). In this week’s “Trade of the Week” feature I thought I’d update you on how the averaged-down position(s) played out, and to tell you what I’m up to now with the Trinity Mirror.
Well, here’s what happened to those positions:
Position #1 (the original position)
Position #2 (the averaged-down position)
Market Name : Trinity Mirror Rolling Daily
The End Result
As an example of “How to Average Down (Safely)”, this position trade played out nicely and generated a healthy combined profit — relative to the amounts staked* — when the positions stopped-out.
* scale up to suit your tastes
The New Position
Having stopped-out of my averaged-down position(s) when the Trinity Mirror price pulled back to about 56p-per-share on 26 October, three days later I was able to re-establish a single position at an even lower price of 52.6p-per-share as shown here:
The Complete Picture
The following chart, courtesy of InterTrader, shows the complete picture of how I bought originally, averaged down, stopped out for a combined profit, and then bought again.
Pyramiding the Position?
My hope now is that Trinity Mirror provides me with an opportunity to complete the position trading cycle by going on to pyramid my latest position.
Two Steps to Better Spread Betting:
Disclaimer: this posting is for general education only; it is not trading advice.