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Online Share Trading

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TKG

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Russ
Super Contributor
Looks like it's in the buying zone.
16 REPLIES 16
Preston
Super Contributor
Russ, have a SERIOUS look at Sasol. Time to go long.
Preston
Super Contributor
Russ, have a SERIOUS look at Sasol. Time to go long.
Not applicable
needs to break down first - I would be looking to pick up the stop loss exits - so I would be buying a big downward move (exhaustion move) from here.
Russ
Super Contributor
I like the look of it, Preston.
Russ
Super Contributor
skaaptjop, on that reasoning would you go for Vodacom right now as it is below some serious support?
Not applicable
I like it yes, but it isn't quite there yet. It is just tickling the break down. It has definitely triggered a buy on my system. So now it has entered my radar, I am just looking for the exhaustion move. This will be characterised by a big down day move (3%-4%) below support. That is when I buy. I tend to trade like a value investor. Relatively strong stocks that are in selloff - i.e. buy the dips.
Russ
Super Contributor
And very oversold. Interesting, thanks.
Preston
Super Contributor
The gate crash open and away we go.... Off to the races...Giddyup Sasol....
Not applicable
the important criteria is relative strength. The stock has to be trading at an alpha to the market - i.e. outpacing the general market. My other hard and fast rule is the 20% pullback level. Stocks with momentum shouldn't be trading more then 20% off their highs. SOL doesn't fit my criteria - because it is basically sideways to down on a wider scale. Not to say SOL isn't a buy (it looks more like a range bound trade) - but it does't fit in my system. So in a nutshell (1 - Relative strength to the TOPI, 2) within 20% of its yearly highs, 3) on a pullback (I use stochastic below 20%, but this is arbitrary, any pullback will do) 4) no reaction to bad news - negates the trade and 5) a 10% stop loss. anything less is pure random. Sit and wait half a year for at least a 30% gain, or exit if it no longer outperforms the market.
Russ
Super Contributor
So far so good, Preston!
Russ
Super Contributor
Thanks skaaptjop. I know there have been times when I have shorted stocks that have dropped below support only to be taken out when the buyers flood back in.
Preston
Super Contributor
Are you in Russ?
Russ
Super Contributor
Yes, Preston. It has finally reached support, is oversold, and I think is a safe bet, although it might still churn around a bit. Thanks for the heads-up!
Preston
Super Contributor
Anytime Russ.
Preston
Super Contributor
Very soon, we will have ignition of 95 Unleaded feul.....
Rams
Super Contributor
The TKG chart does not look like a buying zone yet. And i would caution against trading like an investor....