Pyramided Trade of the Week: on Bowleven

I was first alerted to Bowleven as one of the “conviction buys” listed over at Spread Betting Magazine. I got in at a similar price, too, at 60p-per-share.

With both Spread betting Magazine and The Motley Fool today reporting a tie-up between Blowleven and Petrofac, and with the share price gapping up as a result and then falling back to part-close the gap, I thought that now might be a good time to pyramid my already-profitable position. The state of play in one of my “model” accounts at the time of writing is thus:

Bowleven Trade

The most important thing to note is that I didn’t consider pyramiding a second position at all until my original position was in profit… guaranteed by my guaranteed stop order. And then there had to be a trigger, like today’s spike-up and partial gap close. It’s not ideal because I would have liked the locked-in profit on my original position to be greater than the new risk-to-stop on my second (pyramided) position,;but ideal scenarios are not easy to conjure up when being journalistic.

For those of you who think I’m playing so small as to make it hardly worth the bother, do keep in mind that I tend to run these positions in more than one account simultaneously for comparative purposes. So as far as you know, I might have ten of these one- or two-point positions in Bowleven– giving a total of £10- or £20-per-point overall. And that’s just one stock out of the fifty-or-so diverse positions that I will typically be holding (in all of those accounts) at any one time. So these £££s-per-point soon add up to something more substantial when I’m position trading.

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.