Legal & General, Bellway, The Restaurant Group
Legal & General - early morning auction fascinating. Also gone on beyond 8.00am and I thought that was market-start...noted many bids over yesterdays end of day price and many offers under it! See how that plays out! Noted on Intraday feeds for each of last 4 days for L&G the first 30 minutes seen huge price movements yet don't appear to be able to participate in this...now open at 8.05am. Bought. Took a loss of £170 on this share. Perhaps I should have stuck to my original rather than revised price point - had I done that I would not have bought this share today and avoided the loss - but that is also the benefit of hindsight. Need to analyse why.
Bellway - bought and sold- made my 6% requirement in about 30 minutes! Can take smaller profits in other stocks now.
Bovis - made the PR but I missed the boat - needed to have bought before 9.00am - however I did not see a buy signal. Price did return below my buy level but decided due to lack of time in trading day may not make good - though could make 1.5% PR. Will watch end prices for learning though.
The Restaurant Group - bought at £1.15 above my buy price but only because I had thought that was too cautious and also because not requiring full PR. Sold at profit! Nearly the full PR too but a quick spate of sellers caused me to hit the sell button at the highest ask. £440 profit including Bellway. Still have L&G to close off which looks like a loss - wait or cut the loss. Might even purchase Bovis late as price as dropped into my buy range.
Having made my 6% PR perhaps I should not have bothered making smaller PR's on the remaining shares. My thinking is that the share I chose was the one most likely too and the others despite the same averaging effects as waiting for the next day is perhaps less likely to achieve PR because a second or third choice - better to wait for the next day's first choice? Something to monitor. Certain would reduce commission and stamp duty costs.
Are the market-makers price positions akin to a support and resistance? They have more information than we and presumably will take realistic buy and sell positions?
Holding positions overnight - would a stop-loss protect a gap down? Google. Thinking about this for L&G - particularly as I am likely to close out the other two positions for a profit. A stop-loss does not protect against a price being marked-down overnight or a free-fall situation where there are no buyers only sellers. How often does that happen though? More likely for smaller companies. L&G are not going to be short of buyers! But L&G could suffer from a price mark-down overnight.
Still made £260 overall - due to three profits covering one loss.
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