I completed another small trade in Vodafone yesterday which continues to trade around the £1.40 mark. The company is due to report on the 14th May and with the numbers being so close it is unlikely I will trade this one again until after the numbers. I am keeping a close eye on AstraZeneca which has been hit by a recent share placing and having reported good numbers last week, the shares look reasonable value and I think are likely to find support around the £56 to £58 mark. I will also be taking a close look at Reckitt Benckiser’s numbers on the 2nd May. The shares seem to be finding support around the £57 level and I think are an interesting stock for trading.
The market in general seems to be struggling to make headway at the moment although the earnings season so far has seen some respectable numbers being reported. I would not be at all surprised to see the market tread water over the summer months and we might well see another pull back, albeit more minor compared to the one experienced at the end of 2018. I hope to take advantage of a range bound market over the coming weeks and months.
I have been a professional money manager in London for over 25 years and trading my own funds simultaneously. Unlike many popular traders, I have a very different approach to my trading and focus almost solely on risk management and fund longevity. Another difference is that I don’t trade indices, forex, commodities or glamour stocks. My focus is on cyclical UK FTSE 100 blue chips where the leverage of CFDs and spreadbets allows you to take advantage of the more predictable and staid price action. Trade volumes are low so as to minimise costs paid away to the market, often a significant drain on performance for a trading portfolio.
At any one time I may be studying around a dozen such equities but unlikely to be holding more than one position I don’t profess to get it right every time as markets and information changes which can cause movements that you simply cannot predict. What I try to do is manage my risk with small enough position sizes which also provides the potential to diversify when conditions are right to do so. I keep strict stop losses to avoid damaging my account when positions go wrong. It is much better to get stopped out and revisit the position than continue holding and hoping!
I like the concept of true copy trading as it allows Followers to see the true activity of a trader’s account and make honest and accurate decisions. By taking a lower risk approach and trading in modest sizes my intent is for any Follower to be able to use their ‘multiplier’ to gear up my trade sizes if they personally wish to scale up the trades in search of higher returns.
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