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(Pyramid) Trade of the Week on Barratt

By on January 16, 2013 in barratt, capital spreads, position trading, stop orders, tesco

Do you remember my “Trade of the Week” feature from a couple of weeks ago? It was the one in which I told you how I had just pyramided Barratt so that I had one position with a guaranteed profit and another position (in the same stock) with a very manageable worst-case loss.

Well, things have moved on, and I’ve been able to trail my guaranteed stop order so that both positions are now guaranteed to exit at a profit. In the following Capital Spreads chart the thin horizontal lines represent my entry prices and the thicker (higher) horizontal line represents my guaranteed stop order(s). The current price speaks for itself.

Barratt Trade

This is an example of a successful pyramiding, which is part of my longer-term Position Trading approach. I wasn’t so lucky with my Tesco pyramid which stopped-out for a loss of -6.4 points on my second position… but a profit of +35.60 points on my original position. This second example at least shows that an unsuccessful pyramid can still be a profitable pyramid. Which is how it should be.

Two Steps to Better Spread Betting:

1) Buy the Better Spread Betting Book
2) Sign up with Capital Spreads, IG, ETX Capital, or Spread Co

Disclaimer: this posting is for general education only; it is not trading advice.