what to buy

[#1]

hi. i know markets a high at the moment but what is good to buy? medium to long term? your thoughts?

[Preston]

Based on margin of safety principle , MSM would be an excellent company to buy for the medium term.

[#3]

thanks Preston, much appreciated. What would be your 1yr target on this one?

[Preston]

Above its purchase price of R148.

[Preston]

I am talking investing and not trading derivatives.

[md49]

Preston - following on your MSM commentary from Friday (I mentioned I stop lossed all my MSM CFDs at 121.60) - why do you sell out in batches?

[Preston]

what price did you enter?

[md49]

114.5

[Prestonmyhusban]

1. I sell in batches cos when the market move quickly against me, i have moderate to low exposure. 2. By selling in batches, you allow the orders to be in the market for a longer time so that you can get proper confirmation. 3. Having moderate to low exposure, there is less stress , which allows you to think a bit more clearly. (This is my trading system, which was developed when MTN gave me a beating of note)

[md49]

Ok - makes sense with the confirmation. Often my sell order kicks in and then share price jumps higher. Thanks!

[#11]

thanks preston- followed your advise

[Rams]

For traders , MSM is short and for investors, you can buy MSM for much cheaper.....we see if we get confirmation tomorrow......

[Preston]

Remember to have stop loss.

[Rams]

Agree, but trix is investing (medium to long term), unleveraged?

[Preston]

@Rams, stop loss triggers, and he can buy more units , then it will be beneficial in the long run.

[Rams]

So, you suggest that he invest by buying high and selling low, then buy more and sell lower....

[Prestonmyhusban]

@Rams, Have you read the book "The intelligent investor"?

[Preston]

Sorry, comments in from me

[Preston]

@Ram, If you are holding for long term and the share is in the profit and if the market goes into a downward spiral , i do not expect you to continue holding . Instead sell, and wait for the price to drop and buy more units at a lower prices using the sal

[Preston]

@ RAMS, so did you get the confirmation on msm?