Don’t get too excited– I’m not about to tell you how you can initiate a “risk free” trade on Barratt. But I am about to tell you how my own three-step pyramided trade on Barratt has now become “risk free”.
You may recall from my Three Steps to (Trading Heaven) article that I had increased my trade size to £3-per-point via £2-per-point from an original £1-per-point. Not only do I now have 3x the trade size working in my favour, but also — thanks to the appreciating share price — everyone of the individual positions has now become “risk free”; i.e. my common guaranteed stop order is now above all three entry prices as shown in the screenshot below:
(You may recognise the screenshot as from Capital Spreads)
Scaling into this position in the way that I have was at every stage less “risky” than going all-in for £3-per-point now or at the outset, although in the latter case I would now already be sitting on a much more handsome profit.
This is how my Position Trading approach is meant to work.
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.