dmedin

'Buying bonds' from the banks means giving the banks free money. Which the banks then use to sustain dividends. Why not cut out the middle man and just have the central bank give out free money to the shareholders directly. Jeez.

More likely to be priming the pump for another drop. We need to see another test of 1.1800 🤑

I like it overall but I notice that there is not one single reference to volume. The people at IG/DailyFx seem to think volume is totally irrelevant. That's a huge mistake, I think.

Have you heard of the A book/B book thing? They have to hedge all their trades. If you mainly lose money they can reliably hedge by going in the opposite direction to you, but if you mainly win money they either need to pair you with a 'loser' or trade with you on their own account.

I seem to have been fortunate and caught a wave down. There isn't much volume so it could gap up, so I've a stop near 2500. Even a shallow retracement (23.8%) will give a REALLY nice R:R payoff.

J&J did indeed bounce near the multi-year up trend - will see how much energy there is in the bounce this time. It might be that we get another shot at going short.

That's great, there's a lot of good content on IG buried away that often gets missed because it's hard to find.

So, how far will Greggs drop?

J&J is approaching the crucial multi-year up-trendline and I'm considering closing my position if a bullish candlestick appears today.

Heading back down to 700

Big drop today:

All true ... I still have my fingers crossed

It has been said that one should only use overbought readings in an uptrend as an excuse to liquidate existing long positions (take profit), not to initiate new shorts. However ... it's also been said that big long bull markets are often followed by a 33 - 50% correction and I think Greggs is done for one of those.

Always remember that you can have the most perfect education, the most complete plan in the world, and you could still lose money. That's the nature of trading and that's why you will almost always see every trader that 'makes' it stops making trading their main source of income and starts selling training courses and books instead. Because it's a steady, stable income - something trading can never be.

That's an interesting perspective, and probably not far from the truth. I think it's possible to make money from a smaller balance, but not enough money to 'live on'. I like the example of choosing whether to put £2000 into a savings accounts that pays out 2% interest or spread betting with it and trying to make a greater than 2% return over 12 months. It sets expectations much lower and makes them more realistic.

@Caseynotes What do you prefer to use for trading?

If you are considering buying into a trend that you missed at the start, wait for an oversold indicator (down) or overbought indicator (up) to show up, followed by a dip/climb, followed by a resumption of movement in the direction of the trend, the oscillator moving out of extreme territory, and then hop on.

That's right, it's the spread. Make sure you put a stop a decent distance beneath it otherwise you can find yourself being closed out almost immediately after placing the trade 😱

From John J. Murphy's excellent book on Technical Analysis, 'Master inter-day trading before trying intra-day trading.'

@Caseynotes I use the IG platform much more extensively for actual trading. I find PRT to be clunky, and I don't like that it relies on Java. Since I'm not coding algorithms or backtesting I don't need to be using it so much (although I plan to learn more about that). It does also look nicer.

👍

Seems to be picking up with 1130 as new support.

We are girding up our loins to fight the goodly fight for a second attempt at 2500 and if we fail, could be a good time for a short with a stop just above 2500! 😺

But I shall wait and see if it rallies a bit, then sell the rally. 😎

Yes, it is looking good for the 'precious' this week. 🤠👍