A big thank you to Wendys. The next time I’m in the USA I’ll make a point of dining out at Wendys. I’m not a lover of their food but a great many diners in the USA love them! How do we know? Well you just need to look at their share price! No I’ll just be spending some of the lovely lolly they made me since July last year when I bought the March 2014 contract at 718 ($71 dollars).
The share price has just trended beautifully ever since July. The price is now 973 (97 dollars) so I will bank 255 points at only £5 per point. At no point was I ever in danger of losing any money once the price started to trend nicely. I didn’t even need to move my stop
We want to make a tidy sum of money consistently from trading only small amounts of money and keep those winners running and cutting the losers short as quickly as possible. This will keep you in the game as opposed to blowing your trading account by lumping all our money on just one company. If we lose we lose big and that ain’t good!
Now I could have traded at £50 per point and made ten times the money. But and its a BIG important BUT, just look where I initially put my STOP loss. It was at 569 (57 dollars). This was strategic just in case of any low test price spikes. My risk would have been 149 points at £50 so I would be risking £7450. There are an abundance of opportunities that I can cherry pick from every day so I will always keep capital back to get into these and then let them run. This way I am always in the game and it makes me a tidy living.
So…discipline and consistency are the rules I live by when it comes to trading the financial markets. Thanks again Wendy!! Save me a place at one of your diners!
As always please remember this is not a recommendation to buy or sell Wendys. You need to do your own research as this is for educational purposes only.