If you read my last post you will know that I placed a couple of short trades in Avocet Mining and First Group. Both of these positions went into losses from the get go but first group has recovered some today and has crept into a slight profit. My Avocet Mining position on the other hand is still in a loss but I think I know why. I rushed the trade! It is a trend following trade and instead of waiting until the trend had retraced I just dived in and guess what the stock has been doing for the last few days? Retracing!
I think the retracement might be over as price rose today before falling back and closing close to the low for the day. Obviously nothing is certain in trading but if I could go back a few days I would be placing the trade today instead. Fortunately I left a lot of wiggle room in my stop and I’m still in the trade so we’ll wait and see how it pans out longer term.
I’ve also made a new trade today. There seems to be quite a few stocks that are trending at the moment and I’m focusing my efforts on finding those trends and trading along with them. I think I successfully proved to myself that the super trend cross strategy was only breaking even which is fine if you don’t want to lose money but don’t expect to make all that much either. As I said there seems to be a few stocks that are trending nicely which has surprised me as the overall market is really going sideways. I think it’s good to keep an eye on the FTSE to give a general sense of what’s going on and if it’s trending downwards only trade short and vice versa. When the FTSE is going nowhere or sideways then anything goes as long as it’s trending.
The new trade I have made is in Spirent communications. The price of this stock has been trending upwards for a while, the 20,50,200 EMAs confirm the up trend and price has just retraced from the 52-week high. Sounds like a good stock to buy so I did. Buy at £2 per point at 168.8 with a stop at 158. I made the trade with SpreadCo as they had the tightest spread and hopefully the uptrend will continue. It’s sods law that I brought at almost the high of the day but the important thing is price rose overall on the day. Hopefully tomorrow will be the same and it will surpass the high of today and keep rising.
Anyway that’s about all from me today. I’m hoping to get time over the weekend to expose all my trades that I’m logging in my position logging utility so keep an eye out for that. As always and questions about anything you’ve read on spread betting beginner or in my blog or about my latest trades then please do get in touch with me.
Until next time,
“May the markets be with you!”
The Spread Betting Beginner