Return Trading: Trade of the Week journal and much much more...

[ReturnTrading]

Hi All, I have been a (profitable) trader for many many years. My main focus is day trading UK listed stocks.

I've decided to start sharing my trading experiences - predominantly because I would like to get more from trading than just a profit number at the end of each day/week/year. I would like to also be more of a part of a community, particularly as trading (in my case) involves just me and Mr. Market - who gives little back other than a number at the end of each trade.

So with that in mind, I'm hoping that my journal of "Trade of the Week", which will document a trade of particular satisfaction in the week just past, will be of interest to all. I will also document it in video form on YouTube under my new channel, Return Trading. https://www.youtube.com/channel/UCZSrImBYgFYPXK73V_k3f9w

The first two videos for the past two weeks have already been posted on Youtube. Trades were on G4S and BHMG (profits approx £4k in total). Next week I will add another and document it on this thread here. 5% of the profits of these trades go to charity in the hope that those that need it benefit from Mr. Market too.

All the best

 

[ReturnTrading]

Hi All,

Before I share my "Trade of the Week" from the past week, Youtube recap here:

, I thought I'd share a couple of market observations on UK listed stocks from this past 4 day trading week. First, many UK companies are starting to undertake secondary offerings. These are usually in the form of placings to existing institutional shareholders. The reception to these are warm with the stocks in question opening +10% from the placing price (e.g. Hollywood Bowl, Foxtons, Gym Group to name a few). This gives me confidence holding positions overnight as I am now less concerned about the fairly likely scenario of a secondary offering being announced on a stock in my portfolio.
Second, whilst volatility has reduced, there are still some big intraday swings on UK listed mid-cap/small caps that make fantastic day trading opportunities.

The Trade I've shared this week is on Syncona (SYNC.L), the FTSE 250 Healthcare company. I bought 7k shares as it was trading down approx 10% mid morning on Wednesday - on no news. It reverted back half of this loss within a few hours to enable me to capture approx a 5% gain. Not a huge winner but it had me satisfied.

All the best for the new trading week and stay safe.

 

[ReturnTrading]

My observations from last week still seem to be holding well for the week just past. A large number of companies continue to undertake secondary offerings - and the good news for existing shareholders - these often are at a premium to the previous days close (+10%) or so), and they act as a support level (e.g. look at DFS).
Also, volatility on Coronavirus exposed stocks is reducing significantly from the weeks prior. Opportunities are still there of course, but they are often limited to the market open and close when stocks are most volatile. With that in mind I thought I'd share a video on a trade I did a few weeks ago when volatility was at it's peak (of the crisis so far), shorting HFD.L when it was up 50% to capture a 10%+ profit.

Anyway, here's to a healthy week ahead for all.

 

[ReturnTrading]

I'd though I'd share some recent Trading thoughts I've had in isolation:

The impact of coronavirus and market volatility on Day Traders: Its an obvious but perhaps overlooked point: A 20% drop in the market from the beginning of the year means that as a day trader (ceteris paribus), I will be making 20% less on every trade I make. As trades are in share size and not $/£ amount, this makes sense for my type of trading. So, I'm naturally long the market as a day trader.

Another cost of the recent volatility is that it has created a huge number of opportunities intraday. Since the beginning of April I've spent over £20,000 on exchange fees and stamp duty buying and selling UK shares. Of course this has been made up for by the profits on taking these opportunities but it has made me cognisant of the basics: using a platform that has low fees and executing a strategy on stocks which doesn't have high friction costs (e.g. AIM has no stamp duty). It pains me slightly to think how much I'm paying away on an annualised and 10 year basis...

So with that in the forefront of my mind, I thought I'd share a recent trade on MTFB.L. I've chosen it as my trade of the week to champion making a 40% return and only £6 by way of execution costs:

Best Wishes