Arm Holdings CFD Trade

[Bristolguy]

Hey All,

I am fairly new to trading but have been following for a couple of months. Lost a fair bit of money through a advisory service. I am now thinking of doing it myself.

The main thing that was the cause of my losses was the little stop loss of 5% on my trades.

I am now thinking of gearing up and buying some ARM Holdings CFD's.

I was thinking of going for a 10 000 CFD's with a 20% stop loss. I know that seems huge but ARM holdings have consistanty performed well and with a trading update on the 24th Oct i have a feeling it will go up well. Ipads have sold brilliantly and the Iphone 4 aswell. Fundementals look good too.

This deal is costly upfront as margin requirments are 10% but with a chunky stop loss and the share price moving nicely i think i have a good chance of making profit.

What are peoples thoughts ?

 

[jsc]

If you want a play on Apple, look at IMG. It has moved a lot already this year however.

Who were you trading with btw?

 

[Bristolguy]

Well trading on my own at the moment using IG Markets platform.

I will look into that company. I take it you have made some good gains ?

It is sometimes wise to have a larger stop loss with CFD's ? Leverage can be great as long as you have a good stop loss which allows to to recover from market gliches without having to hit the stopp loss.

It might not be the best solution but gives a little stability at least.

 

[jsc]

PM for you

 

[Bristolguy]

Nothing in my inbox yet bud ?

 

[Dentalfloss]

what is youre time horizon ?weeks or months ???



I will put a chart on later tonight

 

[Bristolguy]

Well weeks potentially less, with a 30 000 Pound holding a 3% gain would give me 900 pound profit, i could trail a stop aswell.

 

[Dentalfloss]

arm holdings..daily candlestick chart
got a nice run up fom june 230p
pulled back from the 420 high.support came in at 370.their is resitance at 390 ish
now has it pulled back and will return to an uptrend or is it a new down trend that is beginning ??
you really need to see 390 hold as support.ie a break above 390,then the pullback holding above 390 area.380 is also a minor support area

 

[Dentalfloss]

380 is the supp area hit the most times

 

[Bristolguy]

Yeah i see what you are saying, and totally agree. I mean i am a newbie in this field but understand a few basics at least. Perhaps i should wait for a more solid support before basing my entry point but having said this i feel that getting in before the trading update on 24th Oct might be a good thing. Of course it is speculation and i have not got a solid idea of the results but think the Ipad and Iphone 4 has helped its corner again and it might rise even further even if for a few days before trailing down.

 

[Dentalfloss]

where is youre stop ??

 

[Bristolguy]

Well this is the thing you see, in the past i have been stopped out at 5% but that was not on this stock. I want to enter this trade with a big 15-20% stop loss to allow me to compensate and drastic movements. To be honest this stock has only ever fell 50p that was back in July 2010, even before this date it has not fallen in this level. It has always recovered well within this range. I was just thinking of worst case senario.

Yeah i know that loads of traders would be laughing at this point as to why i want to have such a large stop loss but i just feel it will give me some protection if worst came to worse. Although 20% is no guarantee that i still wont get stopped out.

 

[Dentalfloss]

ok...it is youre trade
another idea is to graduate the stop...say 20 percent of the holding has a stop at 360 etc etc

 

[Bristolguy]

Yeah true thanks for the info it is appreciated

 

[aspex]

The ARM story appears to be based on fundamental rather than trading signals.
Like the large US companies like GOOG and AAPL there has been benefit from worldwide income earned against a strongly depreciating USD. Sometime this has to reverse so be aware and ready to move when it does.

 

[Dentalfloss]

looks like it is coming into a good support area now

 

[Bristolguy]

Indeed i would have to agree on that

 

[Dentalfloss]

bristols....u still long ??

 

[Bristolguy]

I got out too soon buddy :-(, my hunch was right of course yet again its hindsight but if i was still long i would be sitting on a very very nice profit :-(.

Whats more is that if i bought in where i wanted too with £30K Exposure i would be on a about a £5000 profit . Pretty gutted lol.

 

[Dentalfloss]

what a shame
what was the reason for the exit ??