Plus500 shares reach notional charting support towards 300p

I have to confess that I really enjoyed the time when Vince Cable was the Business Secretary as I could refer to him as the Anti-Business Tsar. The FCA remind us how they are the Business Prevention Authority, and seemingly have the remit of undermining the City of London.

One of my immediate thoughts in the wake of the latest announcement by the FCA to propose stricter rules for the trading of CFDs and Binary Bets was that there may have been insider trading on the short side ahead of it. Given the way that shares of Plus500 gave a gap down signal in September this may allegedly have been the case. However, the real source of interest was actually the regulator’s observation that 82% of clients lose money on CFDs – presumably because they do not understand them. Clearly, very few or zero people at all from this August organisation trade on a regular basis. If they did, they would know it is the volatility of the markets and leverage, rather than the financial instrument itself which is the problem. Nevertheless, just as we are looking to extract ourselves from the red tape and bureaucracy of the EU, our own set of unelected pen pushers and mouse clickers is sabotaging the City of London – the nation’s Golden Goose, yet again. Perhaps the only good news here is the way that shares of Plus500 have already fallen so heavily and have reached notional charting support towards 300p. Ideally, there will not be any end of day close sub 300p to suggest further legs to the downside are in prospect.