Ok, so I opened 2 trades on 27th April.
The first is with Aegis Group, a media and digital marketing group. Looking at the chart it’s been trending long for the last 6 months. It’s also affordable for me to place a stop loss on the 100 day moving average and trade at £1 per point.
The idea here as with all my trades is to ride this trend for as long as I can. My get out point will be if the price drops below the 100 day SMA. If the 100 day SMA rises then I will adjust my stop loss accordingly. Ideally, the 100 day SMA will go above my entry position eventually resulting in a definite profit, but we’ll see. This way my potential profits are limitless but my losses are calculated and controlled.
I’ll check on this every 3-4 days, but usually won’t need to do anything to it for weeks when i’ll just need to tweak the stop loss. This trade would ideally stay open now for a good few months as it’s rides the long trend. We’ll see.
The second is Air Partner plc who provide private aviation services. This trade has been trending short for about 4 years and still has some room to carry on yet. On this I noticed I could also afford to place a stop loss at the 50 day SMA. It hasn’t gone above this since Oct 2011 and even then it only kissed it briefly. Again i’ve placed £1 a point on this trade as a sell bet in the hope it continues to trend short for a long while yet.
The eagle eye amongst you may notice in my screengrabs that I’ve an open position with Game Group. That’s a remnant of my previous trades which I didn’t close from 2011. The markets been closed and I need to speak to IG Index to see if I can get my profit out from it. I’m half expecting them to say no as it’s been so long, but i’ll find out.
Soon after I placed the trades my profit was sitting at -£20.00. A few days into the trends and i’m about -£6.00 so it’s already heading in the right direction.
Again, I’ll have to wait and see if this trade continues to short. For all I know it could rapidly spike tomorrow activating my stop loss. If it does i’ve limited my loss to an affordable amount, that won’t take too much from my starting capital, allowing me to live another day for another trade.
My plan is to hold these trades, hoping one or both of them come good. As soon as I start moving the stop loss closer and effectively reducing my potential losses i’ll be able to free up a little extra cash from my capital to take out another trade. Perhaps a US or Singapore trade as my current two trades are UK based and I need to ensure I don’t fail to diversify again like last time.