Choosing the example for this week’s “Trade of The Week” feature wasn’t easy. Not because there were no good ones to choose from, but because there were too many to choose from. I’ve chosen Centamin, not only because it’s been an “exciting” (read “volatile”) stock of late, but because it provides me a chance to remind you how ETX Capital charts can helpfully show your “in play” trades along with their attendant stop levels:
I know it’s a little difficult to read, so let me tell you that it shows:
1) How I bought at a price of 26.34 after the most recent “gap down” on 13 December.
2) How my stop order is now sitting higher at a price of 38, thereby securing a profit of £11.66 per £-per-point that I staked.
3) How the current price implies an even higher profit that I could take right now (at the time of writing) but I won’t, in case it goes even higher.
I don’t want to sell out prematurely until my stop order is hit, because I like to run my position trades with trailing stop orders until those positions get stopped-out of their own accord. Sadly, this stop order is trailing but not guaranteed, so at some point I might be tempted to sell out manually — rather than waiting to get “stopped out” — because I don’t trust this very volatile stock to get stopped out at a good price in the absence of a guarantee. We’ll see.
Two Steps to Better Spread Betting:
Disclaimer: this posting is for general education only; it is not trading advice.