Absa heading for glory

[#1]

Since last topic absa still heading for the roof. I saw last order today at closing for 11 million. Hope he is selling, Absa destined to drop. Comments?

[platsak]

Beware shorting banks. I think there is a run coming on them.

[jack12]

Yea, as long as the close is higher, I would wait another 3 days before entering a short

[#4]

The banks are flying...SBK almost at 52 week highs..when will the correction come??this week??

[SimonPB]

maybe no correction ??

[#6]

maybe you long simon

[#7]

Maybe,maybe not..I personally will feel a lil scared to buy in at these levels..Any bad global news,1 of the bigbanks in the US fail to meet estimates and...down down down.IMO

[CHATTYCHAT]

imio, reason for the rising Banking sector star (and some other shares) is: they have been undervalued by the market in recent times, as response on overreaction to impulsive trading and uncertainty. Participants in the market are not always trading/investing according to what they know, but according to what they speculate about - and this brings distortion. Traders working according to a system, does not act emotionally, although their hindsigt reflections might radiate some emotion. Today is one of the extraordinary days and the green arrows are reassuring - Warren buffet was reportedly VERY LOW in cash in recent months...

[SimonPB]

bwabwahahahaha .. long the market, yes .. me system put me in yesterday .. but on absa .. more likely you are short ..

[#10]

In my one year of trading(part time) I notice that this market over blows things,upside and downside..Like MTN deal,shot the price to 136,from 120...in a matter of seconds,then they read the details and sold the stock..Now you have an analyst changing Goldman to a buy and we all go buy financials..How does that change affect ASA and SBK,since they operate in totally different markets..The thing I learnt while trading is NEVER panic..If you short or long,I found that 9 out of 10 times,if you hold your position and wait out the rally/drop you end up making money on a trade,initially I use to close the position and lock in the losses,now I am more patient,what goes up must come down and vice versa..

[divz]

newbee i would tend to agree with you but what i have noticed lately on banks and retailers is that the trend is more bullish than bearish. downside on the dow n ftse we do not see much of a drop but any hint of positive news and we rally quite sharply dunno but i would rather be long than short in this market.

[SimonPB]

never panic, I agree .. but just randomly holding on is madness .. ahve an exit strategy and stick to it .. regardless ..

[SimonPB]

an if you think I am being crazy .. check out the ddt chart for 2000 onwards .. if long by now you're toasted ..

[#14]

Ja the same happened to me when I started playing with ssf's my strategies mostly gone right but I couldn't wait it out in the rough times cause i would close out if I didnt have enough trading capital

[SimonPB]

rough times can last longer then you ever imagined .. that's why we have a stop loss .. rather get out and wait for the trend to confirm again and then get back in ..

[#16]

You cant hold on randomly,that is madness,you correct,but at the point of entering a trade,you must have had good reasons to enter into that trade,so for example,u sell SBK now @ 95..It goes to lets say 100,you down now,u sell at 100,it goes to 102,then reverses,and a week or two later it @ 80..but obviously theres the converse,it could keep going till 120 and close u out..you gota weigh the probabilities,it is a risk one takes.For the past 4 months its worked for me..To each man his own strategy I guess..

[#17]

mmm.. whats that saying?; "the market can remain irrational longer than you can remain solvent"....something like that

[SimonPB]

so basically you're running a wide stop loss .. thing is what the stop loss is doesnt matter, use 2% rule and exit when stop is hit and size matters not ..

[#19]

That strategy works most of the time newbee, but That doesnt actually sound like a wide stop loss, You close when you cant carry your position any longer. Which means it might wipe out all your profits from previous trades if you try and average your cost as the share goes against you. Its a good srategy but one bad knock and you down to your capital.

[#20]

simon, are the goldman sachs numbers going to influence our banks if its good or is it priced in already? And what time is it expected to come out?