I didn’t have to wait long for this to happen!

 

On the face of it this order to buy worked as planned – there was a convenient little spike down in the SP this morning which triggerd my buy order – set at 233p – to be activated at 232.82. Ideal as long as the spike down isn’t the beginning of a price slide.

 

The position is currently showing a loss of £8.46 which effectively is the “spread” difference between the buy price I just paid and the sell price. I need the mid price to be greater than 233.6p to break even.

 

I have set a rather optimistic order to buy Wessex Exploration (WSX) at 6p. Broker Man Dan (brokermandaniel.com/) has reported rumours of a possible takeover here and company news is very positive. BMD reports have been known in themselves to cause SP movements, so I have set this price well down from the current price of 6.85. The order is for £100/pt – sounds a lot, but at 6p the bet represents the equivalent of an investment in 10000 shares or £600. (The Melrose position at only £5/pt equates to 500 shares or £1164.)

Current Profit: £59.68p