Following my blog on Friday, the question “Where do I place my stop loss?” cropped up again. It’s an ever popular question from clients when placing a trade. For which there is no one answer. It’s like asking “How long is a piece of string“. Working out what might make sense, however, is extremely simple….
The UK 100 is back at the floor of a 2-week 6800-7000 shallow rising channel. The culprit is a strong Pound Sterling, which hinders many UK Index members from a currency translation standpoint. If the shares pay a dividend in US Dollars, the stronger that GBP gets the less these payment are worth. And Sterling is…
Client A rings in, identifies him/herself and asks Accendo to “buy £10,000 worth of UK Index stock X“, because the shares are trading multi-month lows. After the usual security checks Trader B obliges, asking “what’s you plan? Would you like a stop or a limit?” Client A says “no stops, no limits, thanks, bye”. From…
If Hollywood ever made a movie about my stock broker career, I would call it: “Dr. Rangelove, or: How I Learned to Stop Worrying and Love the Volatility”. Many of my trading clients dislike the word volatility, thinking it’s a negative aspect of the stock market. My goal is to help investors embrace volatility, master it…
The UK 100 is ebullient, ending the trading week 0.9% higher after a strong 2-day rally that took the blue-chip index +2.7% from this week’s 6796 lows. Moreover, this has taken the index’s YTD gains to +3.7%. Much of the advance can be chalked up to a weak Pound Sterling, which fell on weak UK…
The UK Index rally from December 27th 2.5yr lows of 6538 has extended to 425pts or 6.5%. The index of UK-listed Blue-chips is up almost 250pts, or 3.4%, so far in 2019. Depending where you draw your trend-line, a breakout could be on the cards. We could soon be trading a 7000 handle again. We haven’t…