Trend-trading at its finest!

During the stock-market carnage recently, the share price of Facebook dropped down and hit it's stop-loss trigger which I had placed just below the average for the year (ma50) a few weeks previously. I had opened the trade in November 2012, when I could see that the price was rising. I took my eye off the ball for a bit and did not even realise that the price had fallen back in the subsequent months. However, in July 2013, the price rose again, considerably, and I started to run a stop-loss, that I inched upwards, approximately monthly. Last week the stop loss was hit. I had paid £1000 for the shares in Nov 2012, and I got back £2726 from the sale of the shares last week. The shares were in my ISA, so no tax to pay, either.

2015 08 28 Facebook

This is a great example of a trend-trade going well. However, a good number of my trades have not done well in the past, and I think that attempting to pick winners is a hard task indeed. This is making me think about a change in trading strategy. I am putting together a simple daily forex trend-trading strategy (spreadbetting), a weekly multi-asset class trading strategy (ISA), and a hedge-fund strategy (pension). I hope that this will provide a tax-free income and increase assets in a tax-free environment too.

Watch this space!


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