SIPP Trading Strategies

[seancass]

I have opened a SIPP trustee account with Sippdealextra and, additionally, have opened a broker account with IG Markets for the precise intention of trading CFDs within the SIPP.

I was interested in the views and strategies of others who trade CFDs via their SIPP ( or indeed just favour position trading.)

With IG Makets Guaranteed Stops being available (for which an additional commission is payable) one sensible choice is to position trade rather than intra-day trade. The decision now is what to trade! The choice is wide with UK and US stocks and indices, as well as European stocks. How many fellow traders trade, for example, one specific index or stock ( e.g. the QQQQ?)

Secondly, have any traders a particular strategy within their position trading to avoid trading instruments which frequently gap overnight? Two of my favourite liquid US stocks, SNDK and KLAC are tempting to position trade. KLAC tends to make a significant overnight gap at least once a month. SNDK less so.

QQQQ is most likely the vehicle I shall use to trade CFDs to begin with, as something tells me that it is a more sensible policy to focus on one stock or index and get to know it (as far as you can with these things - I think of the lion tamer with his head firmly inserted into his pet's mouth proclaiming, "It's okay - I know him well!")

QQQQ is trending (down) well; it gave a distinct sell signal around 31st December and is still heading south ( given some manageable retracements) perhaps towards 36.36 and thereafter to 35.81

Is there an area within Trade2Win where followers of the QQQQ congregate specifically?

 

[JonnyT]

I would trade Forex...

JonnyT

 

[seancass]

Jonny,

I'm not sure that one can trade forex via a SIPP. I understand, however, that a number of SIPP brokers are poised to offer a variety of futures trading very soon, including forex.

Sean

 

[Naz]

Hi Sean,

I invest with my SIPP.Mainly in large US stocks,as well as some UK shares.
There was another thread going where we were talking about the UK online gaming sector at the moment.Sportingbet being one such share in my SIPP at the moment.But the thread seems to have been pulled for some reason,Ii cant find it anywhere.

This sector seems quite warm at the moment and one future IPO might even find its way into the FTSE 100.Here is some info on it.

Party Poker announced its active exploration of a possible initial public offering (IPO) on the same day that the Yahoo! Internet portal announced its intention to partner with peer-to-peer betting company Betfair to offer online wagering via Yahoo Betting. Separately either one of these developments would be the biggest news in the history of Internet gaming, but taken together, they mark the beginning of a new chapter in the evolution of gambling online.

Upon the announcement that Party Poker's parent, Party Gaming, might pursue a public offering on the London Stock Exchange, financial publications speculated the value of the IPO could be anywhere from four billion dollars to even as much as a staggering $10,000,000,000. That later number was based on a comparison to Sportingbet PLC. In October 2004, Sportingbet purchased the (at the time) number three online poker cardroom, Paradise Poker, for between 300 and 400 million dollars (depending on performance figures for the next year). At the time of purchase, Sportingbet traded for about 100 on the London Exchange. Only three months later, at the time of the PartyPoker announcement, it was trading at 235. Since Sportingbet is trading now at about twenty times next year earnings, and PartyGaming is speculated to make in excess of 500 million dollars in the next year, that leads to the ten billion dollar number. That seems extremely high, but still, should it occur, a Party Gaming IPO should end up in the multiple billion dollar territory, which would immediately establish it as one of the 100 largest companies on the London Exchange. Formerly known as iGlobalMedia, Party Gaming is also the parent company of Starluck Casino and PartyBingo, but bingo and casino games represent a small part of the company's value.

Rumors also are afloat of possible IPOs on the London Exchange for Pokerstars, the #2 online poker card room, and Cassava Enterprises, the parent of Pacific Poker and the giant Casino on Net.

 

[seancass]

Hi Naz,

It sounds like the world is awash with gamblers! Think of all that revenue flowing into number 11 Downing Street.

Sorry I couldn't get to your seminar with Aboudy from TA-ngo. He is a very helpful and patient guy and just like yourself - a successful trader too. I am waiting for his DVD to be produced via Clickevents featuring his scanning services.

When we last spoke on the phone you said you were having a real think about adding some position trading to your armoury, although your reputation is based on your prolific day trading and scalping successes. If you have ventured into position trading territory, how often, if at all, do you get whipped out of a position overnight?

Best (or should that be 'bet') wishes,
Sean

 

[JonnyT]

Jonny,

I'm not sure that one can trade forex via a SIPP. I understand, however, that a number of SIPP brokers are poised to offer a variety of futures trading very soon, including forex.

Sean

I thought you might be able to get a Forex CFD?

JonnyT

 

[Naz]

Hi Sean,

Aboudy and i are doing a FREE Evening seminar for GNI in March,it would be nice to see you there.No doubt this will be the prelude to another sucessfull joint course that Clickevents said at that time was the best 2 day course they'd ever seen."Not my words."

I have for about 15 months been running my SIPP,searching for stocks to run for days weeks and months.Day trading means you have to be on top of your game all the time and good management of each trade is a must.So managing something over days and weeks is relatively stress free with lots of time to think and plan.I'm also thinking about opening another account just to run US stocks over a longer time frame because i cant put the smaller US stocks in my SIPP at the moment.

When you day trade you know whats hot and running in the US,so if its got a good story like Apple you pop it in your SIPP and manage it in a daily time frame.SYMC was another runner i had from last year.I day traded it all the time and knew it was strong against the market and took a 25% run out of it in my SIPP before being stopped out.

I always check when the next results are due,because if its going to gap then thats when it will be likely to happen.I try and split my SIPP in up to 10 stocks so i'm not to heavily dependent on one stock.I'm always wary that this is investing and not trading so i try and stick to big US stocks because i can get more movement than FTSE 100 stocks.

I use tc2000 for daily charts and make up a folder on all US stocks in my SIPP .The great thing about this is that it puts a small white flag on the chart where you first enter it into the folder.So that you can keep track of all the positions very easily and all your entry points.I manage all the positions from the charts in this folder.So if you look at the chart of Apple you can see by the white flag in Aug where i first identified it and its subsequent move.

 

[seancass]

Hi Alan,

Sorry for the delay in acknowledging your comprehensive and very helpful reply to my post. You have made some good points. I'll pm you about TC2000 and the chart that you affixed to the post. Many thanks for sharing your SIPP strategy.

Sean