Lloyds Banking Share Discussion Threads

[malcolmmm] 20/3/2020 00:08

The trick imo is to have 10% maximum of funds in any one company with stoploss. For FX trading 2% of capital in any one trade adjusting stop according to volitivity

[minerve 2] 19/3/2020 23:52

gnr

OK.

So bear with me, some of this might be basic but it is important. I'll cover risk management and professional trade techniques in 3 steps, this is the first step...

STEP 1

The first step is to decide how much of your money you want to put into trades and the number of trades you want to have going at anyone time. This isn't how much money you want to _risk_ - I'll show you how to calculate that later - it is more a reflection on your overall trade portfolio size and the number of trades you think you could carefully manage and follow. Once you open a trade and set-up a decent stop-loss it could continue for days/weeks/months. Obviously having more than one gives you the ability to have several opportunities running in parallel just in case one or two don't work out but equally having too many is difficult to manage and will limit ability on trade sizes and stop loss points - which I'll come to later.


So for example, you might have £100k to play with and feel comfortable with 4 positions to trade.

So, £100k/4 = £25K per trade position.

This is set in stone and you don't break it for any reason. Even if a position becomes successful you don't plough more than the £25K into the trade position.

Once you've decided that, i'll come on to STEP 2 and 3 in the morning.

Goodnight, see you in the morning.

[gotnorolex] 19/3/2020 23:16

Min...I'm afraid I do trade on a whim, don't stay long, can do with tips and welcome advice on trades! Dicing with CPI at the moment,

[minerve 2] 19/3/2020 23:02

I thought about it BECAUSE I got the impression you set a too narrow stop loss the other day.

[minerve 2] 19/3/2020 23:01

This isn't a question to catch you out gotnorolex, it is one of genuine help. Do you know how to manage risk by appropriate selection of trade size and stop-loss points?

I can help you if you like.

[gotnorolex] 19/3/2020 22:53

"I feel I sold my soul to the money god"
Hats off to you Min for self-effaced modesty!

[gotnorolex] 19/3/2020 22:47

It will only create pent-up demand and frustration! Blood letting is healthy in situations like right now where everyone's heading out the door all at once! The old market maxim of "Fear & Greed" makes the successful capitalist system flourish!

[gotnorolex] 19/3/2020 22:35

Without financial instruments, asset swaps, defaultable bonds, junk bonds etc you'd have the red book economy of McDonnell,

[minerve 2] 19/3/2020 22:27

"The Philippineos have shut the markets down, what good will that do"

It will not allow the hedge-fund shorters to exploit the fear and the vacuum of knowledge on the long-term effects of the virus until they are better known. Personally I think that is a good idea. It is what any sane country would do.

[minerve 2] 19/3/2020 22:22

"a free market economy or command market economy?"

Free market to me doesn't mean hedge-funds with billions going around like bulls in china shops creating stories or exaggerating concerns (more like creating lies) for the gains in billions for the few at the losses of the many. Where is the 'free market' in that? It is massive distortion in the favour of the biggest leveraged funds with the greatest tentacles into the press/media.

If we want a healthy economy we are going the wrong way about it because the billions made by the shorting hedges will no doubt circumnavigate the HMRC and the economy - hoping millions of retirees will have money to spend to help boost consumer demand - will find the current pensioner demographic lacking in addition to the many generations that follow. We are going to hell in a hand cart pretty quickly IMO.

[gotnorolex] 19/3/2020 22:13

The Philippineos have shut the markets down, what good will that do?

"I didn't sell a single share until 6 years after the IPO" I assumed that, because you're a man of leisure at a very early age! Are you still retained in an advisory role?

[diku] 19/3/2020 21:52

Probably a stock market suspension coming?...all company shares/values are being kicked around like a football...

[gotnorolex] 19/3/2020 21:38

What do you want.... a free market economy or command market economy?

[scruff1] 19/3/2020 21:24

Probably not much discussion needed on the last point.
But shorting. Probably always gonna be an accepted activity but does it undermine what (depending on your opinion) should be the proper function of the market? Or as you say is it or has it ever been more than a casino for gamblers. It's certainly undermined some seemingly solid companies. Not sure how that can be right

[maxk] 19/3/2020 21:08

I like the wimmin and song bit ...

[minerve 2] 19/3/2020 21:06

scruff

Thanks. :)

What would make a good discussion?

Whether we close the stock market and/or ban shorting?

Or whether we should all just give up and go and spend it on women and song?

[minerve 2] 19/3/2020 20:59

I caught the tongue in cheek because if I did pack it in and just spend it all on women and song I am sure you would like to join me Alp. :)

Here is to wives and mistresses, let's hope they never meet!

LOL

[alphorn] 19/3/2020 20:47

A little tongue in cheek to see whether there was any reaction from the natives. Unfortunately they were asleep.
It would make a good discussion - please give your views.

[scruff1] 19/3/2020 20:39

Alp
I often read but seldom post on here but I have you down for one of the more rational and considered posters. Also although he's a bit wacky minnie often makes some very good points. I am a little surprised at your comment on 291. I have often thought about it and I think I tend to agree with minnie. It would (imo) make a good discussion.

[maxk] 19/3/2020 18:50

The lesser spotted Millibandus works for International Rescue. Prop: G Soros