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 Post subject: The Journey Continues Part 5
 Post Posted: Mon Jan 10, 2011 7:45 pm 
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Joined: Sat Nov 06, 2010 4:24 pm
Posts: 176
Location: Derby
Hi

not a particularly outstanding day on the markets although my portfolio did manage a reasonable gain of around £50 on the day. I was rather hoping for double that but, what the heck, a gain is a gain...

Usual mixed bag with lots of small downs and a few outstanding gains. Best performer is definitely PETRA DIAMONDS LTD with a massive 6.5 point rise on the day. All of my 7 positions in this company are solidly in the green and desperate for some stop raising, which I hope to do tomorrow morning.

3 new positions executed today...

1. HERENCIA RESOURCES PLC (2nd contract)
2. KEFI MINERALS PLC
3. ROXI PETROLEUM PLC

These are all small companies with good potential and with SPs ranging between 3p and 9p.

Cheers, Big Al


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 Post subject: Re: The Journey Continues Part 5
 Post Posted: Tue Jan 11, 2011 1:41 pm 
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Joined: Fri Nov 05, 2010 8:31 am
Posts: 72
You have been doing very well in your spread betting since November. Do you analyse what is the element that creates this succes? I have noticed that all of your shares seem to be in mining and oil. As it happens both those sector have done very well since November, is selecting the right sector the key to this success?? Or are you an expert in Mineral Resources??


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 Post subject: Re: The Journey Continues Part 5
 Post Posted: Tue Jan 11, 2011 9:05 pm 
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Joined: Sat Nov 06, 2010 4:24 pm
Posts: 176
Location: Derby
Hi

no I'm not really an expert in anything these days - sadly. I have been spread betting since April 2010 on a regular basis; prior to that I 'dabbled' for about 6 weeks and lost about £3500 - that was about 10 years ago!

I started spread betting with the usual shares in the FTSE 100 but didn't make much progress at first. Then I 'stumbled' upon commodities: oil, gas. gold, silver, diamonds, etc., and then I started to have better results after a while. Most of my contracts are AIM listed companies and have the potential to make massive gains over a short period; however, the down side is that these shares can be very volatile, and so the risk is quite high.

Because of the risk involved I always use a guaranteed stop loss; I also diversify as much as possible and, at any one time, I usually have 60-70 open positions in play. So far this 'strategy' is working reasonably well - only time will tell.....

Big Al


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 Post subject: Re: The Journey Continues Part 5
 Post Posted: Tue Jan 11, 2011 11:52 pm 
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Joined: Fri Nov 05, 2010 8:31 am
Posts: 72
It in interesting that you say you diversify because my impression was exactly the opposite, since almost all your bets (or at least the ones that I have seen) are in the same 2 sectors and are very similar sized companies. That doesn't seemed to be diversified at all to me.
The Oil and Gas sector has gone up 10% since 1 Nov and the mining sector has gone up 12%, so my question really is are you going to stick to commodities when those 2 sectors aren't doing so well??


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 Post subject: Re: The Journey Continues Part 5
 Post Posted: Wed Jan 12, 2011 9:36 pm 
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Joined: Sat Nov 06, 2010 4:24 pm
Posts: 176
Location: Derby
Hi

perhaps what I said was slightly misleading because I meant to say that I have lots of positions in many different shares; most of these shares happen to be in the commodities sector. I also have positions in several other sectors but they're not in my list on this particular website. I haven't mentioned them in posts because they've been fairly static over recent months.

I do trade mainly in commodities, to be fair, but if these stop doing well then I will definitely look to buy into other sectors as necessary. At the moment there is every reasonable indication that commodities will continue to do well for the rest of the year; as ever only time will tell...

Regards, Big Al


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 Post subject: Re: The Journey Continues Part 5
 Post Posted: Wed Jan 12, 2011 11:39 pm 
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Joined: Fri Nov 05, 2010 8:31 am
Posts: 72
Good answer,
Most of what I have read on the web about Spread betting seems to be about technical analysis, but I have always thought that fundamentals and asset allocation can have a really important factor to play in profitability. I was lucky enough to also have a play going in commodities during this period, I had a holding in Blackrock Commodities Investment trust which I bought at 1.25 in 2009 , I doubled my stake in it on 1 Dec 2010 at 1.46 and it is now standing at 1.60. I did this through a standard stockbroking account, my profits are very similar to yours. It is interesting that two different approaches can end up with the same result from what is fundamentally the same change in the market. I also agree with you that I think commodities will do well in 2011, lets hope so.
You can see why I asked the question!!
PS I think I have better diversification even though I only hold one share in this area!!


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 Post subject: Re: The Journey Continues Part 5
 Post Posted: Thu Jan 13, 2011 7:30 am 
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Joined: Sat Nov 06, 2010 4:24 pm
Posts: 176
Location: Derby
"PS I think I have better diversification even though I only hold one share in this area!!"

Can't argue with that....!

Cheers, Big Al


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 Post subject: Re: The Journey Continues Part 5
 Post Posted: Thu Jan 13, 2011 9:06 am 
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Joined: Fri Nov 19, 2010 7:24 pm
Posts: 91
Al,
any chance you know what the extra rolling costs are for a guaranteed stop over a normal stop on IG index? Just wondered if having guaranteed stops on so many positions is worth the extra cash it costs. I never use guaranteed stops but I would do if the extra cost was negligible.
Cheers, and trade well!

_________________
Spread Betting Trader
http://spreadbettingtrader.blogspot.com/


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 Post subject: Re: The Journey Continues Part 5
 Post Posted: Thu Jan 13, 2011 9:46 pm 
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Joined: Sat Nov 06, 2010 4:24 pm
Posts: 176
Location: Derby
Hi

there is a small extra charge when using a guaranteed stop by way of a slightly larger spread; for me this is a very small price to pay. To be honest if you think a share is going to do well - and you probably do otherwise why spread bet it - then ultimately it makes little significant difference. If it doesn't do well it hits a guaranteed stop and you know where you are...

I've been using guaranteed stops from the beginning for peace of mind. Occasionally I've used a non-guaranteed stop but the problem you then encounter is 'slippage', which can lose you a lot of money if the SP drops suddenly - it does happen.

Cheers, Big Al


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