hung - funny you should mention £10000 have you been contacted by these guys www.luckery.com? They give £10000 a day and I think they're starting to aim it at traders, thinking of working with them (sorry off topic but since you mentioned the cash!)
hungvir said:
I bought BP just before Christmas and held it for most of January. Then I bought it again but sold it yesterday because I got bored with it. My view on this and other shares is "Are you reasonably bullish about it?" If you are then one way to do it is simply to buy on low volume.
Take a look at the opportunities there were on your chart. The share has to have a decent volume. It's no good on a small cap that does not move for ages, someone only has to buy or sell a parcel and it affects the price by several pence straight away. BP has massive volume, though, and is ideal for some volume analysis.
Split
Splitlink said:
Hi Split,
Are we talking about BP or BP. ? I absolutely agree that large trading volume is important. When you have a bit of time, could you expand a bit more on volume analysis please! All I know is that a rise is more sustainable on high buying volume and vice versa.
Have a good day!
Hung
I missed the opportunity to short EMG. Took my kids to school and came back to see it went back to 2279 having climbed up to 2290. The spread is about 13 point, a bit big. Work is not until 6PM so I'll keep watching it. May be I'll place a stop sell order at 2290 after shopping around for a better spread.
hungvir said:
I should not have mentioned volume! I know next to nothing about it and do not wish to be the one to mislead anyone on its usefulness. I just use it when I think I can see a conection with a particular share.
dbphoenix is the guy to go to if you are interested in analysis but, I warn you, be prepared for a difficult and frustrating experience although he is a very patient person..
Split
Splitlink said:
Thanks, Split. I already replied but somehow it did not get through.
I'll ask dbphoenix when it's appropriate to do so.
By the way, I just installed CMC's marketmaker and quite like the interface. Can't use it at work though.
Best,
Hung
Jack o'Clubs
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Hi Hung,
Nice thread. By the way I agree with your comments about paying for basic charting / price services. I generally position trade so a fifteen minute delay to a price is fine by me, and I use four information services, all free, which serve me fine. Prices come from Yahoo! Finance and Digital Look, charts from ADVFN and the charting package that comes with an account with IGIndex (this is very good). If I needed live prices it would be different, but I don't and can't see what commercial services give me that these don't. Point and figure is the one analysis type it seems hard to get 'free', but although I've looked at it, I don't use it.
Nice thread. By the way I agree with your comments about paying for basic charting / price services. I generally position trade so a fifteen minute delay to a price is fine by me, and I use four information services, all free, which serve me fine. Prices come from Yahoo! Finance and Digital Look, charts from ADVFN and the charting package that comes with an account with IGIndex (this is very good). If I needed live prices it would be different, but I don't and can't see what commercial services give me that these don't. Point and figure is the one analysis type it seems hard to get 'free', but although I've looked at it, I don't use it.
Jack o'Clubs said:
Thanks, Jack o'Clubs. When I started out, I also paid 'ignorance fee'
I no longer doYour comment on the other thread about Caledonian was very helpfull. Thanks for that.
Have to go and pick up my daughter from play group now.
Later,
Hung
Azn
Just one possible trade tomorrow. Shorting AZN.
I rang Finspreads to place my first trade with their minimum stake of 50p but they said they only accept two pound stakes over the phone. I have to go to their online trading platform for the 50p one. I did try it before I rang them and it did not work.
I'll try CMC's marketmaker when I go home then. A limit sell order will be placed at 2610 and stop loss at 2666. Will increase my stake 50 per cent to one quid
Just one possible trade tomorrow. Shorting AZN.
I rang Finspreads to place my first trade with their minimum stake of 50p but they said they only accept two pound stakes over the phone. I have to go to their online trading platform for the 50p one. I did try it before I rang them and it did not work.
I'll try CMC's marketmaker when I go home then. A limit sell order will be placed at 2610 and stop loss at 2666. Will increase my stake 50 per cent to one quid
Pure luck?
So I have placed six trades up to know, four making money, one losing and one's leading no where at the moment.
I based all but one trades on my 'intuition' rather than on chart. One example was LSE. I was fortunate enough to short it when it was in the middle of making a swing low in an up trend. Had I shorted it yesterday, I would have lost quite a bit. LSE even bucked the daily trend and went up.
Rather than shorting, a dedicated chartist would have waited for the swing low to complete like it did yesterday and buy when it continues its rise above the most recent high. I wonder if there's any way of knowing when a share is making a swing low and when it is dropping in price just for a day.
I'll also use limit and stop orders more to get the best price possible for entry and exit. Profit, when following the best chart set ups should be allowed to grow.
And what is my edge in this biz?
1. I don't have to trade when there're no good opportunities. In such a time, I'll return to trading books, concentrate on my main job, study ACCA material.
2. I am a fast learner and I learn everyday.
3. I am in this business not for thrill but for real profit.
4. I know how to read financial papers to complement technical analysis.
5. I work hard and I determine to be rewarded for this by the market.
That's it for the time being. A pat on the back for myself for realising I still have a lot to learn.
So I have placed six trades up to know, four making money, one losing and one's leading no where at the moment.
I based all but one trades on my 'intuition' rather than on chart. One example was LSE. I was fortunate enough to short it when it was in the middle of making a swing low in an up trend. Had I shorted it yesterday, I would have lost quite a bit. LSE even bucked the daily trend and went up.
Rather than shorting, a dedicated chartist would have waited for the swing low to complete like it did yesterday and buy when it continues its rise above the most recent high. I wonder if there's any way of knowing when a share is making a swing low and when it is dropping in price just for a day.
I'll also use limit and stop orders more to get the best price possible for entry and exit. Profit, when following the best chart set ups should be allowed to grow.
And what is my edge in this biz?
1. I don't have to trade when there're no good opportunities. In such a time, I'll return to trading books, concentrate on my main job, study ACCA material.
2. I am a fast learner and I learn everyday.
3. I am in this business not for thrill but for real profit.
4. I know how to read financial papers to complement technical analysis.
5. I work hard and I determine to be rewarded for this by the market.
That's it for the time being. A pat on the back for myself for realising I still have a lot to learn.
Attachments
A stop sell order for AZN at 2610 was placed with CMC over the phone finally. They think I am confused about stop and limit orders so they sent me this.
....
Stop Order
• Generally an order to limit loss on an open position
• Can be used as an entry order
• Stop Buy – Above the current market price
• Stop Sell – Below the current market price
E.g. If you have an open long position then you would place a stop loss to sell below the current market level at a point where you wish to incur no further losses. Should the market reach your stop level your order is executed at the next available price.
Limit Order
• An order for execution at a better price than the price where the market currently trades.
• Limit Buy – Below the current market price
• Limit Sell – Above the current market price
E.g. If you have an open long position then you would place a limit to sell above the current market level at a point where you wish to take the profit on the trade. When the market reaches your limit level your order is executed at the next available price.
Controlled Risk Bets
• This is a guaranteed stop order and incurs a small premium. The level for the stop’s execution is guaranteed by CMC Markets, allowing you to know your maximum loss on a trade.
OCO (One Cancels the Other)
• A stop and a limit order placed either side of the market price, worked in conjunction with each other. If one is filled the other is automatically cancelled.
If you require any extra help, please go to http://www.cmcmarkets.co.uk/help/eng/spreadbet/FAQs.jsp and see if your question is answered there. If not, please do not hesitate to contact us again.
....
Stop Order
• Generally an order to limit loss on an open position
• Can be used as an entry order
• Stop Buy – Above the current market price
• Stop Sell – Below the current market price
E.g. If you have an open long position then you would place a stop loss to sell below the current market level at a point where you wish to incur no further losses. Should the market reach your stop level your order is executed at the next available price.
Limit Order
• An order for execution at a better price than the price where the market currently trades.
• Limit Buy – Below the current market price
• Limit Sell – Above the current market price
E.g. If you have an open long position then you would place a limit to sell above the current market level at a point where you wish to take the profit on the trade. When the market reaches your limit level your order is executed at the next available price.
Controlled Risk Bets
• This is a guaranteed stop order and incurs a small premium. The level for the stop’s execution is guaranteed by CMC Markets, allowing you to know your maximum loss on a trade.
OCO (One Cancels the Other)
• A stop and a limit order placed either side of the market price, worked in conjunction with each other. If one is filled the other is automatically cancelled.
If you require any extra help, please go to http://www.cmcmarkets.co.uk/help/eng/spreadbet/FAQs.jsp and see if your question is answered there. If not, please do not hesitate to contact us again.
LLoy
Lloy gapped up on better profit report. I suspect as the news is absorbed over the next week, the share has further to rise. I'll ready to go long at 560 with stop loss at 538. This is a short play and if I get around 50 points, I'll move my stop loss up or get out. Retail banking is a big part of Lloyds TSB's business and it looks like it won't be improved any time soon.
Lloy gapped up on better profit report. I suspect as the news is absorbed over the next week, the share has further to rise. I'll ready to go long at 560 with stop loss at 538. This is a short play and if I get around 50 points, I'll move my stop loss up or get out. Retail banking is a big part of Lloyds TSB's business and it looks like it won't be improved any time soon.
Attachments
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