Hi Folks,
I'm fairly new to trading (5-6 months in) and I've managed to do quite well so far but I'm still learning everyday as I go, so i'll get right down to it.
If you buy into any stock because you've done your research and think it's got great potential, at the time you buy in the spread you pay sits about 5-8 points. So you go long and then over the next week the stock has exploded to the upside jumping up 300 points within that week and still going strong, my main question here is that I want to add to my position to increase the profits as I think the the stock still has more to go but the spread is now sitting at a 30 point difference!
So what would you guys recommend in this situation and how do you tackle this? If I even go for £1 a point I'm instantly down £30 from a crazy 30 point spread.... Would you just wait and sit it out until the spread drops to say 15-20 points then take the hit?
Thanks,
Steve
I'm fairly new to trading (5-6 months in) and I've managed to do quite well so far but I'm still learning everyday as I go, so i'll get right down to it.
If you buy into any stock because you've done your research and think it's got great potential, at the time you buy in the spread you pay sits about 5-8 points. So you go long and then over the next week the stock has exploded to the upside jumping up 300 points within that week and still going strong, my main question here is that I want to add to my position to increase the profits as I think the the stock still has more to go but the spread is now sitting at a 30 point difference!
So what would you guys recommend in this situation and how do you tackle this? If I even go for £1 a point I'm instantly down £30 from a crazy 30 point spread.... Would you just wait and sit it out until the spread drops to say 15-20 points then take the hit?
Thanks,
Steve