I entered at 140... wanted to get out at 160... now we at 125... I need lot liquid cash for daily p&l... so that is why I want to cut loss.. but I know it could go back to 140 but if it goes to 120 I'm auto closeout
How long can one keep cfds with the interest and is it visible to just ride it in considering I have a substantial amount... so closeout means I loose ... Please provide me with some positive advice or help... would mean a lot. ..
U need to decide whats best for u.. I play the game as follows: I trade a commodities with a 10 to 15% margin..Meaning if I buy a 1000 AGL @ R130, I make sure to keep enough margin to hold a loss even if price drops to R110.. The stop loss would then trigger at that level..the reason for such a large stop loss is these shares move R10 a day or even more so I dont want to be stopped out for nothing.. I have been trying of late to be short rather then long as the cost benefit is definitely favourinf the shorts esp in commodities as share prices have obscenely taken over fundamentals.. I try and hold for as long as possible as I have learnt from past experience is once u cut it turns.
I think the broad sentiment concerning the commodity index will have a greater influence on the share price's of commodity stocks. Once the sentiment have changed, successful projects will add to the value of the individual stocks. Question is.. are you an investor or a trader. It can be positive if you are a long term investor since it will look good on the balance sheet. I doubt if it will have an effect on the short term.
and what about their unsuccessful projects? one day you guys will learn that resources are terrible long term investments. The very nature of their business is short term (buy the rights to dig a hole, ask for money, dig a hole, pull stuff out, pay eskom, non-contributing partners, local councils, labour, half a dozen government departments , fill the hole - ask for more money, etc etc). Don't see where you can possibly see value in a business like this.