With the majority of UK ftse shares dropping today I took a bit of a hit. Whether your a trend follower or not, i’ve found that when the FTSE falls dramatically I ususally have a bad day. And thats because most of my shares are UK based and they are mainly Long bets. A habit I need to get out of. For some reason I’m finding it easier to find long term trends that are going long than I can finding short trends. However to be honest I think it’s probabaly lazyness and not investing enough time into proper research of charts/trades. I’ve a habit of finding the first trend, falling in love, and then picking it.
I posted the other day about opening too many new positions each month. I’ve turned a corner in that respect I think because today I found a trade I was quite keen on trading. Mulberry has hit a buy trigger for me on my system as it crossed over the 50dma. However I resisted the urge to go in on this as I have already opened 5 trades this month. Looking at it I might wait for it to achieve a higher high so I can be sure its moving in the right direction, which may not occur until next month anyway.
However, its a UK trade thats trending long again. I have too many of these. I have 1x UK trade shorting (Sainsburys) and 1x US trade shorting which is Xyratex. Yet I have 4x UK trades on long bets and a long bet on Gold as well. I’d really like to try something a bit different next. Maybe a foreign trade like an Italian stock or a French stock. A shorting foreign stock might help prevent days where everything goes against me. Days like today.
With a couple of weeks left of the month, and my funds management rules preventing me from opening a new trade until July, I think I’ll spend the next 2 weeks trying to identify some foreign stocks with potential buy signals coming up. There’s just so many out there to try and keep track of!