Caught a slight cold on some resullts not being as predicted,, but the other 2 tried were OK. Even the experts get it wrong, but Zacks is worth looking at.
Rolls Royce surprised by a good announcement a few days ago (as did Ocado I mentioned) so it has been worth putting "alerts" on their prices.
(That's along with a dozen others, so the PC or phone chirrups all day).
In the last couple of days RR did this - very nice of it to give all a warning.
If you expand it you'll see it played out over a whole day, so no rushing about.
I'll repeat what I said above - you can set alarms and a "trailing stop loss" which will sell for you if the price gets down to say 1% or 2% of the highest it has been. It has a hair-trigger, so can cut off before you would have chosen if you'd been around, so if you have enough riding on it it's worth being there as well. Set say 3% low so it won't accidentally trigger, if you're away, eating, feeding the cat....
Bought around where you see the blue candles developing up - in the circle area.
In the yellow sort of area, you can sell and wait, or ride it out. In this case, not sellling would have been fine. If you sell and then buy again, there is the suboptimal timing you would have used. Also, you lose the difference between the buy and sell prices, here shown as the red and green horizontals at the top. It's fairy tight.
On this screen, one figure is 1.000098 times the other. Selling and rebuying looking at finer timing, would have been profitable.
If you sell a proportion when it's flat,, you hedge your bet.
Bottling it and choosing to sell and rebuy, at about the level arrowed, lost me about 0.05%.
I prefer to start with a lesser amount and then go in further if/when the trend strengthens; it reduces the cost of a sudden drop. (You look at finer timescales than shown here).
Overall using average 10k, leveraged x 5 so effectively 50k, going from 181.5 to 200 produced 10%.
That's £5000 for being vaguely awake, and near a phone or pc.
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And the other thing - there was a universally predicted interest rate change. They happen frequently, the results are to a good extent predictable, otherwise they wouldn't happen.
It might be a bigger or smaller effect than you expect, see
here but , it's gonna happen.
It's like exchanging holiday money
Yusef in Turkey is going on holiday to Switzerland.
The exchange rate is 30 T.Lira to 1 CHF-swiss Franc.
So he changes say 60,000 TL to 2000 CHF.
Everything is too expensive so he doesn't spend any money.
When he changes it back, the TL has devalued, due to an interest rate change, so it's 33TL to 1 CHF.
He goes home with 66000TL.
So he's happy - back in Turkey land, he's better off by 6000TL. That's a couple of hundred quid.
So next time he goes, he puts a couple of zeros on the end , and he makes £20 grand. (Obviously , countries impose limits.)
See? Now, the leverage rate on Forex dealing isn't 5x, as in Rolls Royce, above, it's 30x
Here's a chart:
The announcement was the middle of Aug 3rd, as predicted. The amount was as predicted, too. (0.25%)
So, say 126.6 to 127.6 (it was higher later and should continue to rise, the article explains why).
You "sell" before the interest change. It's just a different button - you can buy or sell, you don't actually have to own the $...
So the same sum as above (126.7/126.6 ) on 10k x 30 = efectively 300k, is £2369. On a predictable event . That was ok for this time.
The £/$ exchange fee is "round trip" 0.5% of £2369, on the platform I'm using, so £11.84. No other cost.
