Page 13 - Buildingastrategy

BUILDING A STRATEGY PART 5

INPLAY TRADING CONTINUED

Rooney
Rooney already had two game winning goals by half time so I stayed in the

trade going into the second half. Rooney scored a hat trick midway through
the second half so I was able to stay in the trade right up until the latter stages
when demand was high. I sold Rooney for £1.53 per share.

Trade conclusion

Entered the trade buying 50 Rooney shares at £1.20 per share = £60
investment.
Exited the trade selling 50 Rooney shares to market at £1.53 per share =

£76.50 Return.
Pre commission profit of £16.50, a post commission profit of £14.97 and a
return on investment of 24.95%

Top Tips

Trade Players under £1.50.
If you have to exit the trade early and instant sell then the more expensive
players will have a bigger spread which means a bigger potential loss.

Entry price on Rooney was £1.20

Trade players from the favourites to win the match.
Traders will have more faith in players playing for the favourite team rather

than the underdog. There is also more chance of the player staying in game
winning goal position for longer.

Both teams were struggling at the time but Everton were slight favourites
against West Ham being the home team.

With this strategy you will lose sometimes, so its important that you cut losses
short. Before this post I had recorded fifty one trades using this strategy and

I have exited more trades at a loss than at a profit! However I have a healthy
profit margin over the fifty one trades overall which proves that when it goes
right the rewards are greater than the risks. I recommend trading only a

handful of shares while you get used to how the market works in play.