Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

shorting

Reply
Not applicable
woolies O/B
0 Kudos
13 REPLIES 13
BRE
Regular Contributor
They've got results coming out this week so trade with caution.
0 Kudos
SimonPB
Valued Contributor
err results to 6 months ending dec 2009 came out 18 February ...
0 Kudos
Not applicable
How come WHL is only going up?! It seems to be O/B - tempted to jump in, but timing can only be wrong...
0 Kudos
SimonPB
Valued Contributor
a stock can be OB for ages ..
0 Kudos
Not applicable
markets must correct
0 Kudos
SimonPB
Valued Contributor
well I am not convined that statement is 100% true .. and even if it is, the real question is over what time frame and can you hang on long enough ?? why not rather just wait for the correction to start, and then enter the short ?? saves time and money ...
0 Kudos
theyoungster
Super Contributor
whl +4% yesterday niiiiccee
0 Kudos
Not applicable
Sure Simon....a stock can remain O/B for ages BUT as a trader who is observant of market conditions and keeps a trading journal and whose trading objective is to make a profit then i don't care how long the markets take to correct itself because trading is about DISCIPLINE and PATIENCE.Once the technical and fundamentals confirm an entry or exit signal then the probabilities of a winning trade are strongly in the trader's favour and huge abnormal profits are realised depending on the amount transacted.Based on the above ...should get 6 out of 10 success rate.
0 Kudos
SimonPB
Valued Contributor
sure .. but with respect this thread started with merely 'shorting woolies O/B' .. which naturally gives the impressions you was wildly shorting last week some time, or maybe on Monday .. this latest post os way more considered and way more likelyy to result in profitable trading over time ..
an yes I am big on semantics ..
0 Kudos
Ninja
Super Contributor
An OB or OS situation is a warning of things that are to come at some point in the future. It is an alert, it is not a trigger. You need a reversal candle and preferably a candle off support or resistance to allow you entry. This lets you set a stop in the market(breaking of reversal candle high) and puts the odds back in your favour. If this happens off support and resistance even better! To go short or long simply on the indicator is a recipe for disaster. Remember the first rule of trading is protect my capital, second rule of trading is make profit. The accurate disciplined use of oscilators and support/resistance levels will result in happy trading most of the time and when things move against you you have clear stops set so your losses are minimised....this works on the 5min chart of the EUR/Dollar to the Daily chart on Anglo. 1) Oscilator extreme reading. 2) Support resistance. 3) trigger - reversal / continuation candle....works like a dream if you are patient and disciplined.
0 Kudos
Ninja
Super Contributor
Therefore, Woolies is currently not yet shortable, the trade is setting up for short although it is clearly counter trend but no entry trigger has as yet been given. I would look to go long on a pull back, shorting this share does not look like a smart move.IMO.
0 Kudos
Not applicable
Finally Woolies is on the way down...get ready to buy :-)
0 Kudos
theyoungster
Super Contributor
pulling this one up.... wanted to find how the shorts are going ;-)
0 Kudos