Monday, 23 March 2009

Day trading

After my earlier success with Lloyds, first thing this morning I bought some HSBC shares. My basic strategy at the minute is to take advantage of volatility in banking stocks. I think the overall direction is positive, as investors creep back in, but there will be days of big drops. The skill will be to buy on the drops and sell on the leaps.

HSBC dropped a lot on Friday, largely because of investors taking up rights issue sales. This pushed the price down and now they are moving back up, ahead of the US Fed announcement this afternoon. Again my target is 10%: I bought at 370p, so looking for a sale at 410p.

Edited to add: again, a rising tide floats all boats ... shares hit 415p in the mid-afternoon, so I sold on. Interesting this day trading lark.

1 comment:

Graeme said...

punting intra-day gold might be worth looking at Tom. Very volatile at the mo, and a reasonably safe trading channel of a few bucks seems to establish itself for a few hours either side of any spikes/corrections due to fundamentals. Keep your arse covered with stops and you should be fine.