Oil and Mining Stocks
Oil and mining stocks make up 23% of FTSE 100 and 4% of FTSE 250 by market capitalisation.
Oil has formed a double top and found resistance at $70
Oil and Gas Sector
Head and shoulders – reversal pattern
Mining
Weak uptrend – support from 50ema.
Other sectors of interest
Aerospace and defence – triple bottom, above moving [...]
TRADE OF THE WEEK – sponsored by LiveTradingFloor
Astra Zeneca PLC (AZN)
Technical Play: Consolidation Breakout – Long
Entry Price: 3355.00
Initial Stop Loss: 3339.00
Target: 3500.00
Strategy
Break of a consolidation as well as break to 52 week high. (8.43 30/8) Adding to position £5pp now we have cleared risk zone. (8.45 30/8) Move Stop to Breakeven at 3374
Performance
This stock [...]
Support and Resistance
Over time a stock may find that it is unable to penetrate a particular price level.
If this price level occurs at the top end of a stock’s trading range it is known as resistance. If it occurs at the bottom end of a stock’s trading range it is known as support.
If we are [...]
Introduction to Level 2 What is Level 1?
Level 1 shows only the best bid/offer and volume.
Level one does not show any market depth.
What is Level 2?
Can see the price level and volume of all bids/offers that are currently placed in the market.
View market maker quotes
Level 2 can be of major benefit to your trading especially [...]
Power Plays What are you trying to achieve with a Power Play?
You are looking for a pivot in a share’s movement.
Ideally you want to catch the point at which a retracement turns and the main trend continues.
You need to apply the Power Play Basic Rules.
You also need to use some filtering rules on other indicators [...]
Using The News in Your Trading
What external factors can move the price of a stock?
Company announcement.
Takeover talks.
Unexpected news.
Commodity prices.
Company Announcements
Have the potential to move a stock strongly in either direction
Because of this a lot of traders will not hold a stock when an announcement or results are due
We do not trade on the news [...]
Shorting – The RulesIt is essential that :
We only short stocks that are in sectors that are not in the current economic cycle phase, and are also not performing.
The stock is below both of it’s moving averages (50 & 200) or is breaking through it’s moving averages.
There is negative sentiment surrounding the stock.
You always have [...]
TRADE OF THE WEEK – sponsored by LiveTradingFloor
Kier Group PLC (KIE)
Technical Play: Consolidation Breakout – Long
Entry Price: 1529.00 to 1533.00
Stop Loss: 1495.00
Target: 1750.00
Strategy
Break of consolidation and above 50ema indicates a move back to previous highs.
Performance
This stock has moved a total of 6.3% so based on a money-managed trade of 1% risk; your profit would stand [...]
How to Structure yourTrading TimeHow much time?
How much time do you spend ‘trading’ each day or week?
When you are ‘trading’ what exactly are you doing?
How much would it cost you if you had to pay for your time
‘trading’?
Are you using your time efficiently?
Step One : What type of Trader are you?
In order to [...]
Higher Probability TradesLook at the Bigger Picture Before Entering a Trade!
• Am I trading with the trend or against it?
• Am I the ‘right’ side of the moving averages?
• Am I ‘too far’ from the Moving Averages?
• Is my Reward/Risk ratio greater than 3:1?Am I with the Trend?
• The highest probability trades are those in [...]