It's all a gamble....

When does trading and investing become gambling? Answer: it's always a gamble, no-one knows what the future holds. Even buying a house (especially buying a house?) is a gamble..... My trade planned for this coming week is to BUY a gaming/gambling group called The Rank Group, which operates both online and digital casinos. As usual, I will do it with a stop order, that will get triggered if the stock hits a certain price. Stockopedia give them a score of 97, which is pretty high, although the value part of the scoring only merits a 49, suggesting that it is probably not a bargain.

Rank Group

 

Why am I buying it now?

  • It has made a new high this past week

  • There are a succession of higher lows and higher highs in place following a low point 18 months ago

  • the ma20 is above the ma50, and both are rising

  • It looks like its trending upwards


I'll place my stop loss order below the ma50 and just trail it up weekly and see where the trade takes me. Talking of gambling, I am quite taken with how the chart looks for Ladbrokes. It's candle this week rose above the average for the year for the first time since it started a decline two years ago. This certainly would not be trend trading, it would be better described as a 'turnaround trade', otherwise known as 'trying to pick the bottom', which everyone counsels against. But on the other hand, they then say that Warren Buffet and Benjamin Graham were 'value investors'. I cannot see the difference between 'value investing' and 'trying to pick the bottom', myself. It's v confusing.....  The yield on Ladbrokes is currently just over  7%. I'm tempted to buy some and just tuck it away in a dark corner of my ISA account and see what it comes to. It could do very nicely thank you. But even if it just bumbles along at much the same level, the 7% yield is worth having......

As ever, these are just my thoughts about what I'm doing, its not advice! If you want to see my thoughts on how the markets have been this week (answer: down) then click here (3 mins). If you want to have a laugh at my open positions, then click here (5 mins)!

Have a great week!

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