| Spread betting discipline: What to do about Admiral Group? |
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| Written by Virgin Spreader | |
| Wednesday, 18 November 2009 12:53 | |
Day after day Admiral Group sinks lower, do I pull out of a long trade or do I stay my course.
GFT sent over a guide on how to avoid making a mess of spread betting and day trading. The second useful tip in the trading guide details how one should choose a destination and not veer away from it. In non car crash terms what they are saying is choose a trading strategy and stick to it. Which is exactly what I have tried to do as I take to the world of spread betting again. I have decided that because the FTSE is putting in day after day of gains then surely going long on a sound stock will realise you some decent profits? Hence I took the advice from the investment adviser website The Motley Fool. The Fool pointed out that Admiral Group was a safe bet - a strong company with good long term prospects - in fact the article is entitled "One More No-Brainer Stock To Buy". When I opened a 'buy' on admiral it was at a point that I thought showed it to be discounted. Just have a look at LON:ADM. The reckoning was that based on the analysis I received from The Fool the stock would rebound. But it hasn't. It has, over the course of the last week, managed to press downward, defying broader market gains. Now my margin is all tied up in this "No Brainer" stock, and I refuse to get out until it makes a bit more progress on the upside. Essentially I am sticking with the plan, staying on the road, in line with the disciplined mantra of the GFT trading guide. Previously I would have seen the losses and pulled straight out - but not this time. I am waiting for Admiral Group to come back. 
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| Last Updated ( Friday, 20 November 2009 14:30 ) |