One of my strategies that I have been playing for quite some time is a range trade. It's a great play in these volatile times and means you can take advantage of your favourite shares playing the momentum within these ranges between solid support and resistance. One of my favourite shares for this has been trading between 680 and 900 repeating the pattern in as little as a day but never more than three weeks. I myself have taken advantage of this 6 times in the past 5 months. Although admittedly not the whole range - i tend to grow impatient and play about with my trades - (i'm really trying not to and to stick to a trade plan - IMPOSSIBLY simple sounding thing to do, but impossibly hard in reality!)
Imagine if I had just spreadbet £1 a point for the whole range both long and short (I could not do the reverse on two occassions due to the shorting ban being in place up to the beginning of January). Thats 10 trades x £220 = £2200 - 5% spread = £2090 profit.
That's for taking very little risk with stops 5% away from the support and resistance lines. Depite this however, my meddling cost me and I only made about £900 - a testament to sticking to your trading plan if there ever was one. Another rule for Ali - "stop bloody fiddling"
Luckily I'm also naturally hedged as I actually own a large amount of these shares as part of my longer term portfolio. This might well be a good place for you to start looking for your own range plays as well especially as you will be more intamate with the behaviour of the share.
ADVFN.com is great for flcking through shares a well and it is FREE. I am still trying to figure out how to translate the shares I want to dispay into the stock screeners on the site, but once I figure it out, I will share here.
Ramble over...
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