Trader333 and JPWone.
I will not mention the name of the company as I do not want to be accused of ramping/deramping. There are plenty of sites for that!
The price was around £2 at the begining of the year and fell, partly on delays in product launches and volotile CFD trading. He thought it was a good opportunity and I gather did a lot of research before buying. Since then another delay announcement and forced selling sent the price down further. Initially he had a stop on at I believe 80p but lowered this and if it gets close to his next stop he will lower it again!
One final question and again please allow for the dumbness. What role to people like Man financial play in spreadbetting? They own shares in the company under discussion.
I will not mention the name of the company as I do not want to be accused of ramping/deramping. There are plenty of sites for that!
The price was around £2 at the begining of the year and fell, partly on delays in product launches and volotile CFD trading. He thought it was a good opportunity and I gather did a lot of research before buying. Since then another delay announcement and forced selling sent the price down further. Initially he had a stop on at I believe 80p but lowered this and if it gets close to his next stop he will lower it again!
One final question and again please allow for the dumbness. What role to people like Man financial play in spreadbetting? They own shares in the company under discussion.
DITD
They have loads of analysts. They have, almost certainly, been hedging since the beginning. Maybe by writing call options or just shorting stock. I doubt that they use SBs. I hate to say this, but your friend's entry into the market may have given them a selling opportunity.
Split
They have loads of analysts. They have, almost certainly, been hedging since the beginning. Maybe by writing call options or just shorting stock. I doubt that they use SBs. I hate to say this, but your friend's entry into the market may have given them a selling opportunity.
Split
Trader333
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DITD,
This is a typical reaction of someone who thinks they are right when the market has proved them wrong and is one of the biggest causes of financial ruin for most failed traders. Your friend must close this trade.
Research into stocks and convincing oneself that a stock must go up is irrelevant if the market does not do so. Success in trading is about reacting to what is seen and not about being proved right.
The other very serious issue here is that if your friend does hang on and the market turns round and gives him a profit it will lead to negative re-inforcement that he was right all along and only needs to wait to get his profits. This will, without doubt, ultimately result in him losing all of his money because once you get the belief that you were right all along it will cause you to do the same in future trades that will not work out.
This type of behaviour is seen time and again in trading and unless a development journey is undertaken to change this it always results in financial ruin.
Sorry to be so harsh but this is the reality of what is happening with your friend.
Paul
This is a typical reaction of someone who thinks they are right when the market has proved them wrong and is one of the biggest causes of financial ruin for most failed traders. Your friend must close this trade.
Research into stocks and convincing oneself that a stock must go up is irrelevant if the market does not do so. Success in trading is about reacting to what is seen and not about being proved right.
The other very serious issue here is that if your friend does hang on and the market turns round and gives him a profit it will lead to negative re-inforcement that he was right all along and only needs to wait to get his profits. This will, without doubt, ultimately result in him losing all of his money because once you get the belief that you were right all along it will cause you to do the same in future trades that will not work out.
This type of behaviour is seen time and again in trading and unless a development journey is undertaken to change this it always results in financial ruin.
Sorry to be so harsh but this is the reality of what is happening with your friend.
Paul
Trader333, Paul, I would not disagree at all with your comments at all. However he has more than a few bob and can stand the financial loss. How his psyche will cope is a different matter!
The main reason for my initially posting however was to try and find out whether this would have been hedged and if so how. These 2 questions have been answered in part by you and other members (thank you) although I would like to know more about spreadbetters' hedging policies for individual shares. Any more help would be appreciated.
Also my last question about Man, Cantors etc above. Could any one please explain how that works?
The main reason for my initially posting however was to try and find out whether this would have been hedged and if so how. These 2 questions have been answered in part by you and other members (thank you) although I would like to know more about spreadbetters' hedging policies for individual shares. Any more help would be appreciated.
Also my last question about Man, Cantors etc above. Could any one please explain how that works?
As a newbie may I tell you a little about myself? As well as holding shares I spreadbet a little and have accounts with both IG and Finspreads. Will open an account with Cantors once I know what I am doing so that I can take money off of them. I once had the pleasure of meeting the MD of their London operation, (Lee something) and took a decisive dislike!
Have read a few books on daytrading but still go with gut feel which looses me money each time!
I have not really felt the need to post since I joined as I have little by way of skills and knowledge to contribute. I do enjoy reading the threads however and have learned a few things.
Have read a few books on daytrading but still go with gut feel which looses me money each time!
I have not really felt the need to post since I joined as I have little by way of skills and knowledge to contribute. I do enjoy reading the threads however and have learned a few things.
