Buying steel....

Evraz is an international miner and  steelmaker, listed on the London Stock Exchange. The share price of Evraz has risen 71% in the past 6 months. I have held a position previously in the company (as a spreadbet, that expired - one of the disadvantages of spreadbetting), which did well. I plan to open a new long position (buying) Evraz this coming week

Reasons that I am buying:

  • Last week it made a new high

  • The ma20 is above the ma50

  • the ma50 is pointing upwards

  • There are a series of higher highs and higher lows in place which suggests that it is trending.


2015 01 24 Evraz

 

As always, I will not bet the farm on this position. I always risk the same amount on each position that I open, although there is a variability to the amount of distance that I set my stop loss away from my opening point and this will distort the amount of risk per percentage point movement. I could overcome this if I always use the same opening trigger, but I don't - I have a variety of possible triggers to open a new position.

I plan to use the ma50 as my stoploss guide. When will I close the position? I will not actively close it, of course, I will let my trailing stop-loss do that at some point, hopefully after it has made a good profit.....

This weeks economic move was dominated by the announcement of quantitive easing in the EU. It seems that this will have the effect of stimulating share prices upwards. This resulted immediately in the closure of my short TR European Trust position. I had previously moved the stop-loss to break-even, so thankfully this closure did not result in a financial loss. Surprisingly, my short Netherlands position was not affected. In fact, although it gapped up, it  dropped overall this week. This is not a terribly liquid stock, so technical trading may not really be hugely appropriate.....

If you are interested in my thoughts on the markets click here for the video (7mins)

If you would like to see how my open positions are doing, click here (16 mins)

My trendfollower trading account is up 3% since the beginning of 2015

Have a great week - catch up with you next week!

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