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Online Share Trading

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definition of a volatile market

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Not applicable
So MTN announces to the market that revenues would be off by 37% - and the share price tanks. Then the state the announcement as fact - and the share price rallies past its previous point. Go figure (fortunately I am long MTN, so not complaining).
38 REPLIES 38
Preston
Super Contributor
Only unknown variable ,which is now a known fact is Dividends.
Rams
Super Contributor
or maybe the market likes the settlement?
Preston
Super Contributor
maybe but dividend is up 5%.
Preston
Super Contributor
maybe but dividend is up 5%.
SimonPB
Valued Contributor
they haven't made a settlement
jaj
Frequent Contributor
But a provision was created of 9.29 billion. Maybe they have some inside knowledge?
jaj
Frequent Contributor
But a provision was created of R9.29 billion. Maybe they have some inside knowledge?
Russ
Super Contributor
That was a big gap close.
Not applicable
which begs the question, now what. As a trader - I have a healthy respect for this kind of price rejection. Instinct tells me to get out of the trade.
Preston
Super Contributor
Preston
Super Contributor
Still got some energy left....
Preston
Super Contributor
Still got some energy left....
Not applicable
I am a discretionary trader, I always trade on instinct. Never trade on emotion - that is a whole different matter, one which is plaguing the likes of poor FEK and Hali.
Not applicable
I am a discretionary trader, I always trade on instinct. Never trade on emotion - that is a whole different matter, one which is plaguing the likes of poor FEK and Hali.
Rams
Super Contributor
Hali
Super Contributor
I trade based on probabilities..like atm i am looking for a shorting level for some of the miners..it has been up days for 2 weeks straight..the probability is a pullback is near 10 to 20%. I know everyone is happy comms are running and calling this a bullmarket..but fundamentals are in tact..oversupply..diminishing demand..its fundamentamentally negative. Thus a short
Hali
Super Contributor
I trade based on probabilities..like atm i am looking for a shorting level for some of the miners..it has been up days for 2 weeks straight..the probability is a pullback is near 10 to 20%. I know everyone is happy comms are running and calling this a bullmarket..but fundamentals are in tact..oversupply..diminishing demand..its fundamentamentally negative. Thus a short
Hali
Super Contributor
I trade based on probabilities..like atm i am looking for a shorting level for some of the miners..it has been up days for 2 weeks straight..the probability is a pullback is near 10 to 20%. I know everyone is happy comms are running and calling this a bullmarket..but fundamentals are in tact..oversupply..diminishing demand..its fundamentamentally negative. Thus a short
Not applicable
I believe that markets have a rhythm - and I try to tap into that rhythm. There are times (like recent times) where volatility is so extreme that the best strategy is to do exactly the opposite of what conventional systems and indicators tell you to do. I believe that systems have to be adapted to situations. I believe that there is absolutely no statistical or empirical evidence anywhere globally in support of all the technical indicators that are out there, so I personally believe they are all irrelevant. The only item that matters is risk vs reward. Lastly, and this is a tricky part, price action tells a story. The interpretation of that story matters to me, which is more gut than anything that can be empirically tested. I am long MTN because I believe that the market is starting to price the possibility that MTN will reach a settlement in Nigeria. That is a binary event that will catapult the share price. Now yesterday's price rejection tells me that this is as far as the market is willing to go to pay for that story - so I am out as of today. If I am wrong, I am wrong - but that is how I trade.