Selling Rightmove (again)

Welcome to my first trade of  2015!

My trade for this week is to sell Rightmove (again!) The previous short position that I opened in September was stopped out after  I moved my stop-loss down from above the 50MA to the same level that I had opened the position at. Although I didn't lose out, I did close an opportunity. Some traders like to move their stop-loss to their opening level as soon as possible, in order to minimise their position risk as soon as they can. Indeed, I have done exactly that this week with my  long position  in Man Group, which is producing a nice profit. The downside to doing this is that the 'wiggle-room' of a position is reduced, and some trades that would turn good are closed because of a temporary set-back. I guess there is a good argument for doing this when a position has made a good profit, but that is very subjective. In principle, I am against subjectivity in my trading, because it is so emotionally driven.

Anyway, back to this week. Why am I selling Rightmove?

  •  The 20 MA is below the 50 MA

  • Its price has dropped through the 20MA, so it's a pull-back trade, meaning that I am selling at a higher price than 3 months ago (= better value)

  • There is a succession of 4 lower highs and 4 lower lows in place, meaning that it is trending down.

2015 01 11 Rightmove

(click on the picture to see in detail)

Will it continue downwards? I don't know! I am making sure that the amount that I trade will not hurt me if the position moves against me. I plan to use the September high as my initial stop, and then the 50 MA as the stop once the position is further in profit and the price and the 50MA value are further apart.

If you are interested in my thoughts about the markets, have a look at this video (7 mins).

How are my existing open positions doing? Click here to find out! (14 mins).

Platinum members can see my other trades this week: a currency trade, an emerging country, and a healthcare ETF.




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