You know that rollercoaster I was queuing up for? Well it turns out it had to close due to essential maintenance work so I'll have to visit again tomorrow.
I am really considering buying a book to add to my learning. I am going to have a look at todays Power Plays in a minute so maybe something will come out of that.
If anyone has seen something then please leave a comment.
Cheers
Monday, 16 February 2009
New day new trade
Hiya,
Just a quick update on my most recent trade. I have shorted Aegis. Entry at 69.50 Stop at 77.00 and target at 47.00. Not in at the moment but the day is young.
I feel like I am in a queue for another rollercoaster ride in the theme park of spread betting!
Just a quick update on my most recent trade. I have shorted Aegis. Entry at 69.50 Stop at 77.00 and target at 47.00. Not in at the moment but the day is young.
I feel like I am in a queue for another rollercoaster ride in the theme park of spread betting!
Saturday, 14 February 2009
Gunning For Stops
How are you doing?
I now have three trades under my belt and I am £10 lighter in my pocket. Not the greatest of starts but I have to admit my day job has been eating up my evenings too recently so it's been difficult to find a decent trade.
However I am going to short Lloyds today if I can get my platform up. No rules just based on the news. I know this could be a crazy thing to do but I will keep my losses small. Just to get back in the trading game!
Anyway I digress. What I wanted to talk about today was stop gunning. Have you had a power play which your stop just got hit, only for the stock then to go the way you thought it was going to?
I have heard on authority that this is known as stock gunning. I mean how many people would be training the same way we did? So therefore how many people will be placing their stop losses in the same place?
If I were running a large firm that could make an impact on the markets, would I be telling all my brokers to move the market just enough to hit these stops and take out all of us?
Of course I would! So even though we have had the trainingm it is almost like we have to be a bit inventive of where we put our stops.
This could be behind a moving average, behind a big number or even behind the trend line.
Putting the stop 1 point outside the previous high or previous low may not be enough. Yes it may mean you don't take a trade due to the risk:reward ratio, but would you rather have more profit or more trades...
I now have three trades under my belt and I am £10 lighter in my pocket. Not the greatest of starts but I have to admit my day job has been eating up my evenings too recently so it's been difficult to find a decent trade.
However I am going to short Lloyds today if I can get my platform up. No rules just based on the news. I know this could be a crazy thing to do but I will keep my losses small. Just to get back in the trading game!
Anyway I digress. What I wanted to talk about today was stop gunning. Have you had a power play which your stop just got hit, only for the stock then to go the way you thought it was going to?
I have heard on authority that this is known as stock gunning. I mean how many people would be training the same way we did? So therefore how many people will be placing their stop losses in the same place?
If I were running a large firm that could make an impact on the markets, would I be telling all my brokers to move the market just enough to hit these stops and take out all of us?
Of course I would! So even though we have had the trainingm it is almost like we have to be a bit inventive of where we put our stops.
This could be behind a moving average, behind a big number or even behind the trend line.
Putting the stop 1 point outside the previous high or previous low may not be enough. Yes it may mean you don't take a trade due to the risk:reward ratio, but would you rather have more profit or more trades...
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