RE: UK Stocks - Watchlist and Discussion
(2016-10-20, 11:52 PM)pcabc Wrote: Might get in myself. Unfortunately I don't have the option of makings trades during the day. And I absolutely don't want to try and do it from my mobile. So I have to put in orders in the evening or before work.
Quote:The only thing that's putting me off is the volume, as the other criteria look good. Will sleep on it.Volume is something I have to work on myself. Not noticing spikes, but the finer details like their size relative to recent performance.
Perhaps I ought to rework my screener to pick primarily on volume and then chuck out anything where the price is not breaking out.
Quote:P.S. On your note about selling on the rally if the volume doesn't confirm. It's not something I like to do personally unless it immediately fails the next week, as light volume alone in UK stocks isn't enough of an indicator as UK volumes don't tend to have the same patterns as the US stocks. As volume tends to be much lower and spreads much higher except in certain areas of the market.
Interesting point. I've had many positions where I was certain that I've got dead ducks but I have been awaiting a fall to a much lower stop loss. OTOH I've noticed after a breakout sometimes a week or so is needed for a stock to pullback a little before a climb back above the breakout. Minervi mentions this in his book. So being too hasty to sell would not work with these.
I've been following US stocks more closely more recently, simply as that is where the better performance has been.
I've just done my position calculations based on an investor stop loss position at 58p with a 2% risk to my account. Which calculates at a 3.57x the 52 week ATR, which is in the ballpark of what I'd expect on an investor entry, as my initial target is normally 10x the the 52 week ATR, which at 7.141p that gives an inital target of 154.91p
So that's roughly in my risk/reward range of 1 to 3 that like to start with and the spread is only 0.6% which is also good for UK stock of this size imo.
Am going to carry on the checks though to see if there's anything else to put me off buying it as need to identify the negatives like still being under the 2015 high at 92p.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
