The Blog

Tractor Supply

I’ve got a brand new combine harvester and I’ll show you the key!!!

They are called Tractor Supply and were a recent addition to the Nasdaq last year. They are the biggest tractor supplier in the USA. Just get on your tractor and have a look at their website. They sell everything there is to do with farms and a lot more to boot. Have a quick look at their accounts to see how much wonga they are making, very impressive indeed and moving in the right direction. They have plenty of cash on the balance sheet and little debt. Testing this with a small amount to begin with and then will add to this if the tractor really starts revving up the hill!!!


However, as you know I won’t throw caution to the wind so I want some protection on the downside if she coughs and splutters for a while as the buyers are picking their time when to get in. Don’t think it will be long though if they are seeing what I am seeing. The dividend release date is 24th February so not long to wait until after then. Technical indicators show the MACD has crossed up and over. The RSI shows that it has been oversold at 40. Most significantly we are bouncing off our magic red line on the daily and weekly chart so reliable support level to trade from. Come on the tractor!!!

Looking for an entry point of around 6672 and a target point of the previous high at the end of the year which was 7758 so it will be nice if it get’s there again. Will take some profits on the way though just in case she does a U turn and heads back down the hill again.  Will keep you posted.

As always please remember this is not a recommendation to buy or sell Tractor. You need to do your own research as this is for educational purposes only. 

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How to lose your A&F shirt but still make money with your shorts!!!

Another big winner on the Cliff Jumper Strategy! My young lad Sam is a huge Transformers fan and his favourite transformer is Cliff Jumper so what better name to give to this particularly strategy. These trades can be spectacular especially when it’s a huge drop like this one.    

Abercrombie and Fitch fell off a cliff today (see the big red sellers bar!!) following their latest profit announcement. Now to be totally honest I never thought the news would be received as badly as it was.The share price has dropped by 20% so far to 3718 ($37.18). Look at the red sell box on the left hand side of the chart, I sold Abercrombie and Fitch at 4,826 ($48.16) on 16th August 2013. You will see my Buy Stop in the green box was 5,028. I put in a 2 dollar stop (202 pips). This gave enough room for some short term price movement leading up to the profit announcement bearing in mind there will always be some movement in the share price leading up to the profits announcement.

Look closely again at my daily chart. You could have had another selling opportunity the day before with the small red bar. The day after was the cliff jump.

A&F trade

What a great result! The share price fell by over 10 dollars banked me 1065 pips on this trade. Entry point was on 16th August 2013 as shown on the horizontal blue bar so not bad in just a few trading days. So next week’s family holiday is paid for thanks to Abercrombie and Fitch! Happy days!!

Please, please, please always remember this is not a recommendation to buy or sell ANF but to be used for educational purposes only.

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A Massive Thank You to Wendy!

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.

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IBM’s got Dandruff

IBM’s got dandruff!

Head and shoulders formation on IBM. It’s now hit Horizontal Major support of 17,282 three times on October 21st, 13th December 2013 and 4th February. Buy was on the high of thegreen bar of 17,433 on 4th Feb with the stop below (5% stop loss) We are looking to see if it breaks the neck line of 18623 on 20th November which happened to be a doji if you were inclined to sell this back down to the green horizontal support line and bag a plentiful bounty of pips me hearties (The answer to the question in your mind is YES I did short it to support!! I do practice what I teach!!).

We are looking to see if it can break major resistance of 18783 which is my horizontal red line. The price action might also use the 200 day ema as resistance so we need to be careful in case we get some sellers here. My sypnosis is to watch this like a hawk.

IBM Trade


We could see a breakout up through the neck line especially as its bounced off major support three times in just 4 months!!! Target by end of the year could be around the 20,000+ mark for IBM. Will keep you posted when I’m going in, if at all!

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Filling the gaps with TESLA Motors

Filling the gaps with TESLA Motors

This is an example of scavaging some scraps from the table when a share suddenly gaps. This means that the share price opens massively higher (in this case at 21467) than the close of yesterdays price 19361. Also see it closed right on my horizontal support line in green. Uncanny hey!!

What happens sometimes is that some of the gap on the share gets filled in. The strategy here is to let the sellers start painted the screen red. They have seen the share price increase over night and will want to sell off some of their stock quickly. Makes perfect sense hey? Also makes sense to me to have a piece of the action and fish for this evenings supper! I sold Tesla at 21,246 as shown in the red box and the small blue horizontal line. At 25p per point I just closed the trade profiting by 492 pips at Resistance 2.

With a small stake of 25p per point I banked £125 in half an hour!!

tesla motors trade

Thinking if you can do this too? Looks easy doesn’t it? That’s because it is!!

If you’ve got an open mind and keen to learn how to make money from the financial markets your welcome to join us at the Financial Traders Cafe.

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Zoo the Zebra

If you’ve got young kids you are probably familiar with Zoo the Zebra. Certainly one of my children’s favourites!

Nothing to do with Zebra Technologies but the name certainly stays at the forefront of my mind. Technology companies like these are always good to keep on your watchlist.

The share price has flown up by over 13% today and anyone following them on twitter may have got a sniff that punters were buying fast.

Look at the weekly chart below and you will see the share price has been trending beautifully. In June and September last year it hit our magic blue line for a perfect buying opportunity.

If you got in then at about 4500 ($45 per share) you will be looking at almost a 2000 point movement. Even at £3 per point this would have given you a £6000 win which is not to be sniffed at thanks to our black and white striped techno friends!

zebra trade

Not to worry if you missed this Zebra. There are many, many more like this. You just need to stay ready and waiting. Stick to the rules and you will keep making money time and time again with !

Remember you need to be like a tiger ready to pounce on the next opportunity. Now don’t take this literally to mean pouncing on Zebra’s!!! Too upsetting for me and the kids!!!

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You could have retired on Thomas Cook

You could have retired on Thomas Cook

Forget about buying holidays with them. They could have given you free holidays for the rest of your life if you had bought when the share price was just 35 pence in December 2012. They are now worth £1.82. That’s over 500% rise in just over one year!!!

Thomas Cook

If you had just traded these at 350 to 1820 and limited your risk on the downside that’s an increase of 1470 pips, just at £100 per pip this would have given you £147,000! At just £10 per pip (bear in mind the entry price was 350 so a 10% stop loss would have given you a 35 pip margin) so £350 risk assuming you paid more spread up front for a guaranteed stop for safety.

Thomas Cook Trade

The CEO  Harriet Green has done an absolutely amazing job bringing them from the brink of hitting the icebergs and steered them to safety.  The question is will the share price keep going up. Will keep you up to speed on this. Still on the watchlist!!

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