Range Trading

[Nipper]

I have been range trading Vodaphone between 240-260 (ish) for some time now and firmly believe that a great deal can be made by knowing a stock well and milking it. With an almost non-existent spread and high liquidity I have found it very low risk. The possible litigation might put a dampener on this and I am looking for other options.

Does anyone else 'milk' a stock successfully?

I know it's difficult in today's market but I would appreciate any suggestions, we can all learn from each other on this one.

Happy new year to all (this is a great BB!)

Nipper.

 

[Cigar]

Have a look at HSBC. It seems to be bouncing around at the mo. Big co., little spread, good liquidity.

 

[Nipper]

Thanks

I think maybe Cable and Wireless could be a contender. Stayed away this week as the market was running on low volume and anything can happen.

HSBC looks interesting, it is certainly volatile within a certain range.

 

[Cigar]

If its not a trade secret, what indicators and settings do you use to catch the bounces. How do you 'weed out' the weak bounces.

 

[Nipper]

Cigar

I do not rely on indicators when a stock is in a trading range, sure I look at them but it is really down to intuition. Fortunately my job allows me to stare at ADVFN prices for 8 hours a day so I really do get a feel for what the price is doing.

This is risky but I find that a stock with a tiny spread only has to move a short distance before you break even and I am only looking for small percentage gains (If I can earn 2 weeks wages by clicking twice on the internet or making two phone calls over a couple of days I am happy, the secret to this is surely to take quick profits and not look beyond the short term). In other words you are milking it for all it's worth. I know that other people have been milking Vodaphone and this is probably one of the reasons that it stays in the range.

The profits realised from this can be invested for a longer term in a trending stock. Then I will use MACD, RSI and moneyflow as useful indicators. I prefer to keep it simple.

 

[dabrom]

Any jobs going where you work Nipper?
I'd love to be able to watch ADVFN all day!!
Dab

 

[CHARTY]

Nipper, where do you get moneyflow from?

I posted last week an artcile on the TA outlook for Vodaphone. If you click on any of the links I just posted and then click into Charty, you should be able to see it, hopefully!

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The above does not represent financial advice.