Medium-term Stock Spread Betting Journal

[leonarda]

Current Positions

A nice flat week considering, account +0.5%.

Long  PSON.L age:  28 days  current: 1135.5 (P/L:  0.8%) stop: 1069.0
Long  DNO.L  age:  17 days  current:  661.8 (P/L:  0.1%) stop:  627.9
Long  FENR.L age:  15 days  current:  382.8 (P/L:  0.5%) stop:  361.7
Long  KGF.L  age:  10 days  current:  269.6 (P/L: -1.0%) stop:  258.8
Long  LOG.L  age:   7 days  current:  129.9 (P/L:  0.2%) stop:  123.2
Long  DGE.L  age:   7 days  current: 1259.5 (P/L: -0.4%) stop: 1200.0

Account: £1020 (YTD: +2%)

 

[leonarda]

Hedge

Opened some safety long on the VIX at 17.97.

 

[leonarda]

Current Positions

Nice week, account up 13.5%.
Not sure the VIX protection will work out but we'll see.

Long  PSON.L age:  35 days  current: 1177.0 (P/L:  4.5%) stop: 1069.0
Long  DNO.L  age:  24 days  current:  695.0 (P/L:  5.1%) stop:  627.9
Long  FENR.L age:  22 days  current:  407.0 (P/L:  6.9%) stop:  361.7
Long  KGF.L  age:  17 days  current:  266.2 (P/L: -2.3%) stop:  258.8
Long  LOG.L  age:  14 days  current:  134.3 (P/L:  3.5%) stop:  123.2
Long  DGE.L  age:  14 days  current: 1282.0 (P/L:  1.4%) stop: 1200.0
VIX -£52

Account: £1155 (YTD: +15.5%)

 

[Thesimpletrader]

Nice work Leonarda

 

[leonarda]

Nice work Leonarda

thanks!

 

[leonarda]

Current Positions

Well flat for week, some positions doing very nicely, some pulling back. VIX position which I don't think I will do again might recover based on the bad NFP just announced.

Long  PSON.L age:  42 days  current: 1189.5 (P/L:  5.6%) stop: 1069.0
Long  DNO.L  age:  31 days  current:  680.8 (P/L:  3.0%) stop:  627.9
Long  FENR.L age:  29 days  current:  420.0 (P/L: 10.3%) stop:  361.7
Long  KGF.L  age:  24 days  current:  262.4 (P/L: -3.7%) stop:  258.8
Long  LOG.L  age:  21 days  current:  130.6 (P/L:  0.7%) stop:  123.2
Long  DGE.L  age:  21 days  current: 1301.5 (P/L:  3.0%) stop: 1200.0
VIX: -£29

Account: £1155 (P/L: +15.5%)

 

[leonarda]

Position Closed

Closed VIX for -£44.5. Market seems to be covering bad NFP data, implies to me this is going to go higher. I've been trying several hedging strategies recently to try and prevent giving profits back to the market, FTSE hedges, VIX hedge, but it just doesn't work for me. It just seems to add complexity and yet another trade/strategy. Just about every hedging method i've tried over the last year ain't worked, either i've cancelled out good profits as the market's grinded higher, or i've sold for a loss and then it reverses...
However, I'm glad i'm getting to the stage where I can close out positions for a loss, when they are not working, which I think is a good pshycological break through to being a successful trader. I can't compain at being +15% for YTD in this market, which for me has been the hardest 6 months by far over the last 2 years.

 

[safvan]

1. For a 1K account you have way too many positions open. Frankly you should be trading only one position or two at best.

2. Start adding to your winning positions using margin.

3. Use CANSLIM method to choose stocks. The stocks are not performing well. In 6 months provided your stock selection is correct, you should have at least 10k in your account.

Something is terribly wrong with your edge. Please refine it for better results.

 

[safvan]

I dont invest in UK stocks but I just looked at the charts. Frankly i would have avoided the ftse stocks since Feb. The index has had a side ways move for the most part since then.

I would look for stocks that have least correlation with ftse in this in case for going long. They are usually small cap companies.

At the current levels any break through to the upside should be great news for UK folks.

Btw look into US markets. This is where you can make better stock investment decisions.

 

[leonarda]

I dont invest in UK stocks but I just looked at the charts. Frankly i would have avoided the ftse stocks since Feb. The index has had a side ways move for the most part since then.

I would look for stocks that have least correlation with ftse in this in case for going long. They are usually small cap companies.

At the current levels any break through to the upside should be great news for UK folks.

Btw look into US markets. This is where you can make better stock investment decisions.

agree, US markets would have been a lot better YTD, however not my time zone and I like to trade companies and environments I know.

 

[leonarda]

1. For a 1K account you have way too many positions open. Frankly you should be trading only one position or two at best.

2. Start adding to your winning positions using margin.

3. Use CANSLIM method to choose stocks. The stocks are not performing well. In 6 months provided your stock selection is correct, you should have at least 10k in your account.

Something is terribly wrong with your edge. Please refine it for better results.

Remember i'm not trading "your" method, and i've looked at CANSLIM before and thought that's not for me. I trade the method I think works for me.
I also don't believe that 1000% in 6 months is possible long term, imho. Maybe in a few 6 month stretchs, but then so is -100% with those stategies, imho.
50% per year on a part time trading strategy I think is.

 

[leonarda]

Something is terribly wrong with your edge. Please refine it for better results.

If I make 50% + by year end I will be happy considering the effort it takes, i'm not greedy!

 

[leonarda]

Frankly i would have avoided the ftse stocks since Feb. The index has had a side ways move for the most part since then.

agree, I have actually altered my positioning strategy based on market action/breadth over the last month and that would have kept me out of a lot of the down/sideways moves this year so far. I will see how this change improves things for the rest of the year.

thanks for your opinions.

 

[JRP2891]

3. Use CANSLIM method to choose stocks. The stocks are not performing well. In 6 months provided your stock selection is correct, you should have at least 10k in your account.

Something is terribly wrong with your edge. Please refine it for better results.

Very questionable advice when you don't know the person trading or his personality. You're also either incredibly naive about possible results attainable in 6 months, or you're incredibly bullish on equities for the rest of 2011?? If you're bullish, fair enough, but I don't see it from a fundamental standpoint, at least not until some huge structural changes (public and private) have taken place which will bring risk markets down anyway, and there's recognition and a resolution to the global energy problem, a.k.a Peak Oil.

 

[leonarda]

Position Closed

Stop hit.

KGF.L 256.74 P/L: -5.77%

 

[leonarda]

Position Closed

Trailing automated disaster stop hit!
This sort of price action with the markets zooming up 7% then zooming down 7% within 2 weeks doesn't do position trading much good!!

LOG 121.8 P/L: -6.11%

 

[JRP2891]

Position Closed

Trailing automated disaster stop hit!
This sort of price action with the markets zooming up 7% then zooming down 7% within 2 weeks doesn't do position trading much good!!

LOG 121.8 P/L: -6.11%

Leonarda, not sure if you've said already, but I was wondering whether there's a reason why you don't short shares too?

 

[leonarda]

Leonarda, not sure if you've said already, but I was wondering whether there's a reason why you don't short shares too?

hi, my method is medium term positions going with the long term primary market trend "Bull". I have tried mixing shorts in before, but typically got burnt going against the primary trend with sharp turn arounds. When the next bear market occurs I will go short only.
Since I use Stan Weinstein methods my analysis to go short would be to pick Sectors below their 30WMA, which is also falling and in late stage 3 or stage 4, and choose stocks therein similarly. At the moment only 3 FTSE sectors fit this:
Mobile comms
Banks
Industrial metals & mining

but you're right a few shorts would have helped this week, and I wish I hadn't closed that VIX long (doh!)

 

[JRP2891]

hi, my method is medium term positions going with the long term primary market trend "Bull". I have tried mixing shorts in before, but typically got burnt going against the primary trend with sharp turn arounds. When the next bear market occurs I will go short only.
Since I use Stan Weinstein methods my analysis to go short would be to pick Sectors below their 30WMA, which is also falling and in late stage 3 or stage 4, and choose stocks therein similarly. At the moment only 3 FTSE sectors fit this:
Mobile comms
Banks
Industrial metals & mining

but you're right a few shorts would have helped this week, and I wish I hadn't closed that VIX long (doh!)

Right I see. Well for the record I think you're doing pretty well, and I like your methodical approach to trading which is a must if you're ever to become "consistently" profitable.

I wasn't suggesting you short, I was just wondering whether you were long only. Regarding the VIX long...if it isn't in your plan, don't trade it. Remember our edge is very small in trading, therefore it's wise not to expand your trading during tricky times which can and will subtract from your proven edge. I constantly have to remind myself of that rule. Stick to what you know and execute consistently.

 

[leonarda]

I wasn't suggesting you short, I was just wondering whether you were long only. Regarding the VIX long...if it isn't in your plan, don't trade it. Remember our edge is very small in trading, therefore it's wise not to expand your trading during tricky times which can and will subtract from your proven edge. I constantly have to remind myself of that rule. Stick to what you know and execute consistently.

Yes, agree. It wasn't in my plan, I didn't have a real plan as when to close it, hence I sent it packing!
Cheers!