Trade of The Week: Inmarsat

This week’s featured “Trade of The Week” is on Inmarsat, the Capital Spreads chart for which is shown below. You can see how I established a new long position at a price of 528.3 on 3 August, and how this position is nicely in profit at the time of writing on 6 September. This position trade is protected by a profit-locking guaranteed stop order, so now I really can’t lose, and on Capital Spreads (though it could equally well have been InterTrader) I was able to guarantee the stop order retrospectively when I was good and ready.

Trade of The Week: Inmarsat
My main reason for presenting this trade is the fact that I think it just about met Malcom Pryor’s bullish entry criteria at the time of entry on 3 August: ADX above 30 (well, at 29, but near enough) and DI+ above DI-. If you don’t know what this means, you really need to read Malcolm’s books.

From a less technical perspective: I bought this stock when the price shot up and then pulled back a little!

Note: By speaking with Malcolm Pryor via his own forum at http://www.spreadbettingcentral.co.uk, I realise that I should not have inadvertently suggested that ADX is Malcolm’s only entry criterion. It might have been better worded as a “necessary but not sufficient” criterion to be used alongside other criteria in some of Malcolm’s strategies.


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