Yesterday I told you how difficult it was to choose a “Trade of The Week” example because I was spoilt for choice. And so today, here is a “bonus” trade of the week on Regal Petroleum. Well, it is nearly Christmas.
You might have noticed that the share price has been up and down like a yo-yo over the past few days, as shown in the InterTrader chart below. Between Friday 14 December and Monday 17 December the price rose by some 75% from about 24p to 42p, before falling by about 44% today (18 December).
The horizontal lines on the above chart show the price at which I bought into Regal Petroleum while it was flatlining (like this) and the price at which my guaranteed stop order just stopped me out. In a nutshell I bought at 18.4p-per-share just before the price broke upwards, and I sold by stopping out at 28.3p-per-share for a profit of £9.90 per £1-per-point that I staked (minus some financing fees and a fee for the guaranteed stop order).
While I tend to standardize on nominal £1-per-point bets for documentary purposes, I really pushed the boat out on this one by having two such positions in an InterTrader account:
If you still think it’s a puny profit (but better than a loss) don’t forget that I tend to run multiple accounts for comparative purposes. So as far as you know, I might have also replicated the same trade(s) in another account like this:
And this is just one of the 50-or-so stocks that I might be position trading at any one time.
What happens now is that Regal Petroleum goes onto my “Last Sold List” (see the book to find out what it is) with a view to trying again if the price falls back some more.
Two Steps to Better Spread Betting:
Disclaimer: this posting is for general education only; it is not trading advice.