I’ve featured Cape as my “Trade of The Week” before, and now I feature it again because I’ve closed the trade with the result as shown in this IG Index P & L Breakdown Report: This report, which is one of the things I like about IG Index, shows how the position trade ran for about six […]
Archive | stop orders
Deals, Dividends and Deductions
By Tony on September 5, 2012 in capital spreads, ig index, intertrader, position trading, stop orders
In this update I’d like to remind you of how your spread betting ledger cash balance — which is not the same thing as you overall portfolio valuation, or your available trading funds — is affected by three kinds of transactions: deals, dividends, and deductions. Deals In one of my spread betting accounts I closed […]
Fancy a Trip to Las Vegas?
No, I’m not offering a trip to Las Vegas; nor have I taken such a trip recently except in the metaphorical sense that I will allude to shortly. But my attention-grabbing headline is relevant. All financial speculation is a gamble, whether it is the noble art of serious “investing” or the more “risky” (apparently, but […]
Trade of The Week: The Cape Caper
A few weeks ago at the beginning of August, Cape shares slumped by some 40%. I went in at my token £1-per-point (long), with a guaranteed stop order in place just in case the worst should happen (again) shortly afterwards. The worst didn’t happen, and in fact the best happened, with the share price up at […]
A "whipsaw profit" in the making on Chemring?
In my Position Trading book I raise the possibility of notching up whipsaw profits by employing guaranteed stop orders. These are ‘notional’ profits (i.e. avoided losses) that accrue when the spread betting company is obliged to stop you out at your guaranteed stop order price at a time when you can re-purchase immediately at the […]
Trade of The Week: Bottom Fishing for Borders and Southern
By Tony on August 24, 2012 in capital spreads, etx capital, financial spreads, ig index, intertrader, stop orders, trade of the week
On 16 July, oil company Borders and Southern Petroleum gapped-down massively from about 60p-per-share to less than 20p-per-share. Pity the fools who were holding a large position through this gap-down, which all goes to show why it is important to diversify or to employ guaranteed stop orders. So, what did I do immediately after the […]
Trade of The Week: Textbook Pyramiding of Home Retail Group
By Tony on August 20, 2012 in etx capital, ig index, position trading, stop orders, trade of the week
This week’s “Trade of The Week” is a really interesting one because it provides an almost textbook example of pyramiding into a trending stock. (If you’re wondering which textbook I’m referring to, I mean my Position Trading book, of course) The IG Index chart (aren’t they great?) illustrates it nicely: Having established an initial £1-per-point […]
Seasoned Spread Bettors, Start Here!
By Tony on August 20, 2012 in capital spreads, financial spreads, ig index, intertrader, malcolm pryor, position trading, stop orders
As seasoned spread bettors, we may be tempted to think that we know it all. But the markets have a nasty habit of humbling even the best of us from time to time, and we discover that we all have something to learn after all. That’s what this web site is all about: how to […]
An Example of How to Average Down (Safely)
One of the golden rules of trading and investment is to never average down, despite the fact that logically this should lower your average purchase price thereby enabling you to break-even much sooner. As I see it, the problems with “averaging down” are twofold: 1) If you’re not careful, averaging down on your falling stock […]
Can’t Move Guaranteed Stop Orders When Markets Are Closed
By Tony on August 14, 2012 in capital spreads, ig index, intertrader, spread co, spreadco, spreadex, stop orders
I’ve been out walking and enjoying the sunshine today rather than trading or writing, and when I got home I was keen to review and adjust my stop orders so as to lock in more of the profits on of today’s rising positions. Except that I couldn’t, because for the most part my stop orders […]