In, Out, In on HMV

First things first: did you see the latest review of my Position Trading book posted by bobbob? I take his phrase "sound common sense" as a big compliment!

My re-established position in HMV yesterday did stop out again as I predicted, at 33p. When it fell even lower, I placed a stop order to buy at 33p so that I would be no worse off if and when I bought in again. My plan was to trail this opening order downwards if the price kept falling, so I would be implementing the Trailing Stop Buy trading pattern from my Financial Trading Patterns book. You might guess that I ended up stopping in again at 33p.

Some will say that all I have achieved is to keep my recently-stopped out position but now with a lower stop order. Fair enough, but I might have done better, and at least I've done no worse, and I haven't increased my exploratory position size by averaging down. If I've caught it right this time, and it now goes up indefinitely, then I have at least retained the 1-point (£1) notional profit from yesterday's stop-out at 36.9 followed by re-purchase at 35.9.

Disclaimer: trades posted are real, but for general education and entertainment only and are not recommendations.
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