More importantly, adhere to your stop loss and then spend all the time you want to figuring out the reason for the drop. Resource shares in general are under pressure given the uncertainty in the markets surrounding the Euro Zone debt crisis. If you don't make use of a stop loss, you could end up watching the share drop even further. It's difficult but set yourself one if you haven't done so already.
Green Beast: Many thanks for you advice and info. Will activate stop/loss. Sponono: Many thanks also for you valuable comment. Never a good idea to listen to a chartist. They work in hind sight which all of us can do. They do not trade themselves but make money by selling the stuff to us poor succers.
I'm a n00b, and I SO "caught a falling knife" on this one. Never quite understood/appreciated the term till I got hurt. "Cheap doesn't equal value", "never too late to sell"... these aphorisms have the ring of truth, but nothing like learning from experience.
learned that lesson in 2008: bought IMP at R270 and and luckily sold out out when my 2% stop loss triggered, so the thing fall to R90 (74%). If I did not respect my stop loss I would still be 38% out of pocket today, never mind the opportunities I would have lost and my working capital tied in a losing INVESTMENT. Lesson learned: NEVER BUY A STOCK IF THE 200 SMA IS FALLING no matter how appealing the trade is.
All depends on the risk level R7 toR8 is always a good entry level and if you buy the shares on the swing there is limited risk in august it went to R9,7 with an entry at R8 when it runs I hope you can catch the buy it normally jumps the river
Mark my words. My target price for CZA is 94 cents. It has a head and shoulders formation which indicates that 94 cents is a probability. Time will tell but if 200 day MA is pointing down rather sit on your hands. It is safer!!!
there is more than one way to invest boet. falling moving averages mean nothing to investors who have done their homework. Not that I am saying coal is a buy - not by a long shot. Just accept the fact that there is more than 1 strategy out there.