RE: Red Braces Brigade29 Apr 2021 12:05
T's T5ading Tips ( circa Q2 2020 ) The prices shown in here are out of date ( ASC @ £31 !! ) but the examples still work and the principles are sound.
DAILY TRADING TIPS!
1. I find it important to note what the share price is doing on open ( in my experience 80% of the time the following happens) - the only difference being is on days where there is news for the company/sector. If a share opens up, then it will drop usually within 10 minutes of opening - if the shake is early in the morning - 9 or 10, then you know the share is going to rise in the day. If the share continues to drop throughout the day, then you know its going to start down the following day (bit like IAG) last week so you will buy more shares - I've shown how this will impact your trading positively when this happens.
If the share price opens down then buy on the clear shake - it usually turns positive during the day then.
2. The graphs here are very good guides on where the trading range may be for the day - whilst I keep saying there's a 50p range, its not always the case especially with high volume, news driven days - get used to using them and seeing the trend for the day establish itself - I think Fridays graph showed something like £13.10-£13.35 and surprise, surprise, that's where the share traded for the day.
3. If you're not certain whether there's been a spike/shake, which I sometimes have difficulty in identifying with the low volume that we're having most of the time, apart from reviewing the graph, consider the range movement and base any buy/sell decisions on those as well.
4. Stop thinking in terms of monetary gain, start getting into the mindset of selling on spikes, buying on shakes - that change in mindset could completely change your success rate in trading - I gave some examples before in the information I was giving to G about IAG and Ocado - small and often can give you far greater return than one big hit over the longer term.
5. Bit of an obvious one I know, but only buy if its a clear shake - there's a danger that you get tempted to buy because the share price has dropped in the afternoon - if it doesn't bounce, then its going lower the next day.
6. I think a good example about not worrying about taking a loss if the market turns against you is when the news came out here about Japan and the Bonds - I think from memory that the share price went down for a couple of days, but lets say for example that you sold your 5000 shares for £12 ie £59,994.05 (after buying them for £13 for £65,330.95) you would have taken a a "loss" of £5,336.90. If you then used that capital to buy shares again at £11 then you would be buying 5426 shares - so when they get back to £13 and you sell, then you're actually in profit by £5,201 rather than just breaking even. Don't worry about the share price going down as it is an opportunity to buy more shares, and more importantly keep you in the game day after day. Cont.
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