Active day and swing traders

[marben]

'morning all,

It's been a morning for taking some profits :

a) SPW short closed @ 488. SPW starting to rise from daily stochastic bottom & MACD histogram has moved into negative territory (this is a short closing signal for me). Original trade opened @ 509.5 on 28/7. Closed temporarily when I got cold feet (error) on 3/8 @ 502.25 on 3/8. Luckily managed to reopen 50% of trade @ 503 on 4/8.

b) 50% of LLOY short closed @ 457.25. I had not originally planned to close this yet but price declined very rapidly after opening this trade @ 469 on 11/8 , so protecting some profit as price seems to be rising from very deep daily stochastic low. Am retaining other 50% until next daily stochastic bottom. Short term, I'm expecting some recovery in the price but am then expecting it to fall again. I hope it won't rise as far as my stop and that it will fall again to a lower point than my current exit - this may take 2-3 weeks.

Unfortunately my remaining trades aren't looking too great :

Short DXNS, 50% EMG, 50% LLOY, MKS, WTB; long CPI, HMSO, SBRY, TATE. Of these only LLOY & WTB are currently in profit. However, the others are not (yet) giving contra signals nor are they close to my stops, so I'll be sticking with them for the time being.

I'm not expecting to enter any new trades today.

Good trading all,

Mark

 

[marben]

Intraday auction just started on LSE

 

[marben]

Auction completed. Trading recommences. Prices will restablise soon.

 

[Euro_d]

What happened?
UKX stopped @ 5304 for 12 point profit.
We have just dropped 10 points.
Chechen??

 

[Euro_d]

Hi Mark,
just read yr post and that explains the massive swings! Almost stopped BT's close stop but at least I am riding a BIG 1 pt gain.
Still thats what day trading is all about.

 

[marben]

Apologies!

I missed some bits in my diary & didn't report the SPW trade accurately (& didn't take account of xd event). Here's the corrected version:

a) SPW 50% short closed @ 488. SPW starting to rise from daily stochastic bottom & MACD histogram has moved into negative territory (this is a short closing signal for me). Original trade opened @ 509.5 on 28/7. Closed temporarily when I got cold feet (error) on 3/8 @ 502.25 on 3/8. Closed again @ 498 using trailing stop prior to results announcement. Reopened 50% of trade (as results didn't have much +ve news nor change sentiment) @ 494.23 (adjusted for xd) on 4/8.

Euro_d,

Did you get stopped out during the auction (i.e. before 10:15)? If so, you should have a word with your broker about that. Mine (d4f) doesn't execute stops unless there are trades actually taking place at a price equal to or beyond the stop - which is pretty fair.

Good trading,

Mark

 

[khi]

hello, it was the option expiry, happens on the third friday of each month

 

[Euro_d]

Hi Mark,
I too use D4F and the stops on individual stocks held but the UKX stop was tight and they executed it correctly.
In general I am very happy with the way D4F execute stops. IG on the other hand are terrible unless you are prepared to pay the extra spread for controlled risk, personally I am not! I have an account with IG but avoid them if I can. As D4F now have an extensive market coverage I rarely use IG.

FYI, I am now long DAX @ 4905 with an 8 pt trailing stop. Will not re-enter UKX unless we make a new high of 5312 ish. This might well happen after the US open as the open looks good for a 20 pop.
Dave

 

[ale]

Can you give some more explanation of this for newbies, please.
Sounds like this is another thing to be factored in.

hello, it was the option expiry, happens on the third friday of each month

 

[marben]

Can you give some more explanation of this for newbies, please.
Sounds like this is another thing to be factored in.

Sure thing. Firstly, it's nothing to worry about but you should be aware of it. For the duration of the auction, no trades take place, so prices can be ignored and stops aren't executed.

When options or futures contracts expire (at the times khi states) traders that still have open positions in those contracts will have to meet their obligations by buying or selling shares. In theory this could create a false market. Fortunately, the LSE has a mechanism for dealing with this: the intraday auction. For details, I recommend the book "The UK Traders Bible" by TheArb.

There is sometimes a slight discontinuity in prices (i.e. there can be a gap up or down) after this auction, so tight stops can be a problem.

HTH,

Mark

 

[khi]

hi ale

agree with mark that theres noting to worry about. its just some traders closing out or cash and newing their positions thats all.

however, theres one thing i need to mention is that u can still trade during auction via dma platform and often u do get a good price as well. i guess what mark refered to was spreadbet or cmc platform that they dont allow u to trade (obviously to protect themselves) when share goes backwardation during auction.
cheers

kim

 

[marben]

hi ale
...however, theres one thing i need to mention is that u can still trade during auction via dma platform and often u do get a good price as well. i guess what mark refered to was spreadbet or cmc platform that they dont allow u to trade (obviously to protect themselves) when share goes backwardation during auction.
cheers

kim

Kim is right (almost ): if you have a DMA platform (which means using CFDs or trading with serious capital), you can enter limit (or market) orders during the auction but they are not executed until the uncrossing and all orders then execute at the uncrossing price. If you are daytrading, I think a DMA platform is essential. As a swing/position trader though, the tax advantages & absence of commission that spreadbetting offers suit me.

Cheers,

Mark

 

[khi]

Kim is right (almost ): if you have a DMA platform (which means using CFDs or trading with serious capital), you can enter limit (or market) orders during the auction but they are not executed until the uncrossing and all orders then execute at the uncrossing price. If you are daytrading, I think a DMA platform is essential. As a swing/position trader though, the tax advantages & absence of commission that spreadbetting offers suit me.

Cheers,

Mark

hey mark,

i know spreadbet suits u more and respect that u have made enough money from them to save u substantial amount of cgt. Spreadbetting firms are making too much money from too many innocent traders, so lets hope there are more ppl like u to money out of them ey.


cheers kim

 

[khi]

anyway back to trading, COME ON KGF!!!!!!!!!!!!1

 

[marben]

Kim,

Let's not debate spreadbet vs CFDs on this thread. I suggest we leave that to other boards [or start another thread if you want to discuss it].

On the tax issue, though, to avoid confusion, it's income tax I save, not CGT. If you trade full-time for a living you are subject to income tax on your trading profits. Of course, if you're only doing it as a hobby then you can use your CGT allowance. That's my understanding of the tax postiion, anyway.

I have been advised by my accountant that spreadbetting is considered to be gambling by the Revenue and as such any profits are not taxable.

Cheers,

Mark

 

[khi]

mark

ur right, lets leave the debate to other thread. have a good weekend mate.

cheers

kim

 

[ale]

So, if I read you all correctly, on the third Friday of every month it's advisable to stay clear of the market until about 10:30am.
I can't believe that I haven't come across this before.
It doesn't sound like a closely guarded secret but neither can I recall seeing it anywhere.

 

[marben]

So, if I read you all correctly, on the third Friday of every month it's advisable to stay clear of the market until about 10:30am.
I can't believe that I haven't come across this before.
It doesn't sound like a closely guarded secret but neither can I recall seeing it anywhere.

Hi Ale,

As a swing trader, it doens't follow for me to "steer clear". You need to be aware of these auctions but the impact that they have depends on your trading style/methods.

You're right that it's not all that well known: it's also new since November 2004. Here's a reference to details: http://www.londonstockexchange.com/.../0/EDSPservicedescriptionFinalv30010904mm.doc

Cheers,

Mark

 

[marben]

'morning all,

Decided to take loss on 50% EMG short trade this morning @ 1688 (opened @ 1650.5 on 18/8). Broke my rules & traded before 9am because there was +ve news over the weekend & price opened higher, with apparent buying support. This will probably turn out to be a mistake :cheesy:

Good trading all!


Mark

 

[barjon]

mornin' all

well after the famine the feast duly arrived on friday when emg ( ), aal, anto,ba.,hg and xta triggered with ulvr and jmat this morning.

relieved to see the positive opening this morning (i hate entering on friday's, particularly when i'm not about) but with so much exposure i'm shifting stops to b/e as soon as i can. probably lose a few of them because of that, but safety first.

good trading

jon