Things are nicely primed for positive share price action. I took the decision to close some of my CFD (contracts for difference) positions on Friday and open spread bets on IG INDEX instead since this strategy means any large move up in Xcite will mean no capital gains tax liability. CGT is now 28% for higher rate tax payers and I don't fancy handing over a third of my Xcite gains to the Inland Revenue. On September 2011 spread bet positions the premium was pretty reasonable late on in the week for Xcite. Annoying though that the deposit requirements on both Xcite and Bowleven are high given their AIM status.
A lesson I've learnt with both CFD and spread bet trading is to leave plenty of deposit in your account to avoid any problems if things go wrong and they start closing positions for you because of margin calls. Before the 2008 stock market falls, they used to call you to tell you to deposit more funds. Now they just close them without informing you. I can imagine there were a lot Rockhopper investors caught out when the "flash crash" happened last year and there margin was exhausted when the price collapsed only to be in utter dismay when the share price recovered. This is why I do not use stop losses on AIM stocks, the volatility can be so enormous that you can be caught out whilst you're in a meeting or getting a coffee! Juggling things to maximise your position but leaving yourself some security in case things go wrong can be a tricky balance.
I must admit I get itchy over the weekend but I've learned not to wish it away, esp. if you work 9-5 5 days a week and also follow the markets. Though I do look forward to the Monday morning bell at 7!
ReplyDeleteI guess it's unusual to have a week coming up with so much news flow on stocks in the portfolio. Mind you with 2 young kids the weekends are not quite as relaxing as they used to be! Finally the sun is out this morning at least! Hopefully I could buy that condo in Florida with some Xcite trading profits.for some extra sun.......!!!!
ReplyDeleteRegards CI
I'm hoping to buy more XEL on Monday but fear it may be too late. If we get an RNS (assuming it's positive) I imagine the open price will sky rocket. I don't "trade" as such, so I don't have Level2, so don't know what price I'll be able to get in at. Looking at the figures for 21-Dec-10 the open was 21.5% higher than the previous close! Assuming that as a worst case, we could see an open circa 470p. Of course, assuming the RNS was the updated CPR, we'd be able to run the figures on the asset value and probably still see a substantial discount.... and conversely, maybe if there is no RNS then folk will be getting nervous ("Surely if it's good news they'd have released the data by now") and we might see a fall. I'll keep on dreaming :-)
ReplyDeleteThe timing of the CPR is the $64,000 question. The last RNS said it was due in "due course" which implies that the timing is any time soon. However, the Christmas break may have moved things back a few days. On the other hand the fact it is an update not a new report may accelerate its release. Will be watching the RNS updates with keen interest at 7am tomorrow!
ReplyDeleteCI
Indeed. It would be nice to think that (assuming a positive update, which is practically a given from what I can tell) it would be released at 1430 GMT so as to allow trading on both LSE and TSX with full information. Oh, and to allow me to place my trade before the expected meteoric rise ;-)
ReplyDeleteGreat blog, just added you to my new blog. I too am also looking forward to some 'Transformational' news from Bowleven possibly tomorrow.
ReplyDeleteSorry mean to say my site is www.tweet-trader.blogspot.com
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