Our Trading Strategy
Knowledge, experience and above all timing.
Our strategy to generate profits
Our strategy takes a highly focused approach to trading. While CFDs can be a complex and time consuming product to the uninitiated, we take a straightforward and pragmatic approach to making use of their unique trading benefits. Here is our approach:
Careful use of leverage
We take a considered and balanced approach to the risk and do not believe in over-exposure. Therefore whilst CFDs can be leveraged up to ten times the initial deposit, we believe that leveraging only five times is all that’s needed to make a sensible return and this limits the downside of any losses by limiting the leverage used.
Focus
Our strategy focuses on trading the highly liquid quoted stocks of the UK 100 and top US stocks and index tracking instruments. By focusing on a few stocks at any given time we can keep close to the movements and be ready to open and close positions instantly, with the aim of protecting the investment or taking the profit. Typically we would concentrate on about 15 stocks at a time, looking to place 6-8 trades a day.
Taking the short term gains
We believe in taking profit quickly, and on small movements. Little and often is our mantra and we aim not to leave positions open overnight. Losses are taken where appropriate so capital isn’t tied up but re-invested with a view to making up the loss.
Investing with confidence
Because the trading strategy focuses on the UK 100 and top US stocks, we are very comfortable trading long and short in these stocks as we know the high liquidity means that we should be able to close the positions easily.
As CFDs carry a higher risk than straight equity investment, positions must be constantly monitored and assessed. Our Discretionary service allows us to manage an actively traded portfolio on your behalf.
- All trades are subject to conditions set by our Investment Committee.
- We look to take the profit on any position when it increases by a minimum 1%.
- Should a position go over 5% off-side we would look to close rather than tying up capital.
Our background
Interactive Investor Discretionary CFD Trading is provided by Direct Sharedeal Ltd. one of the few independent full service stockbrokers in the UK. The Investment Team is headed by Andy Palfreman one of the founders of Direct Sharedeal. With a trading career spanning four decades, Andy began at Aitken Campbell & Co. Stockbrokers, one the of the UK’s most successful market makers.
As one of the country’s leading trading experts with a market maker background, Andy’s aim is to close his book at the end of the trading day locking in the clients profit and/or mitigating their risk to any overnight fluctuations.
Andy says – “I take a calculated approach to risk. Be averse if necessary and when it comes to profits, my mantra is little and often. It is my market maker discipline to quickly close any loss making positions, not to tie up capital and to re-invest to make up any losses.”
Each investment decision is based on market research, technical analysis, but above all knowledge and insight. With a team of accomplished market professionals with decades of investment experience, the Investment Team have the ability to respond rapidly and efficiently to quickly changing conditions, it’s a trading strategy that is capable of delivering growth and returns no matter which direction the market takes.
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