# Panic Selling



## treefrog (22 January 2008)

thought I'd post a few links likely to help those who have never ridden a bear - only a bull, and maybe reassure that it has all happened before

here's the first

http://www.investopedia.com/articles/trading/06/ESM.asp


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## treefrog (22 January 2008)

treefrog said:


> thought I'd post a few links likely to help those who have never ridden a bear - only a bull, and maybe reassure that it has all happened before
> 
> here's the first
> 
> http://www.investopedia.com/articles/trading/06/ESM.asp




and these:

http://www.investopedia.com/articles/basics/03/062003.asp

http://www.investopedia.com/articles/trading/04/011404.asp


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## grubadoo (22 January 2008)

Thanks tree frog. i myself have seen a bear but never ridden one.
Do I need a saddle?

Thank you again for the interesting read.


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## explod (22 January 2008)

Good thread frogalog,  a great day for those prepared.

Wall street tonight will be interesting.   My take is to wait out a week or two as the bargains will not go away.   The fear will hold things down for some time.

Stage one today, stage two will come after many see the news this evening.

And who knows today may be only the start of bigger falls yet.

Comforting to have my physical bullion but like most others my OXR today hurt bad.

Look at what your company is worth down the track a bit and not focus on the dip down.   Value stocks will stay value stocks.  

The bucking bronko will tire at some stage.


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## tech/a (22 January 2008)

Don't think there was panic selling today.

More sustained selling.
Finished on its low,wide range bar,Volume increasing over the past 12 days--NO very large volume spike.
Could well be one tomorrow.
If not we will see one before this is over.
You'll normally get a range spike as well.


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## mark70920 (22 January 2008)

tech/a said:


> Don't think there was panic selling today.
> 
> More sustained selling.
> Finished on its low,wide range bar,Volume increasing over the past 12 days--NO very large volume spike.
> ...




Commsec
"The site logged 40,000 transactions in the first 90 minutes of trade, compared with 50,000 on an average day. It crashed between 10.05am (AEDT) and 10.35am AEDT.
The reason for the interruption was a large number of trades and hits on the site. 
We've not seen trading levels of this load or magnitude ever before."

Must of been a bit of panic on open


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## Porper (22 January 2008)

explod said:


> Good thread frogalog,  a great day for those prepared.
> 
> Wall street tonight will be interesting.   My take is to wait out a week or two as the bargains will not go away.   The fear will hold things down for some time.




It has been sustained selling for a few weeks really, not one big panic.I think we are not going to get a massive plunge, there is perceived value fundamentally now, there will always be buyers from now i.m.o.

Not to say we won't go down but I think the worst is over.Mid and small caps have been hammered, quite a few down 60-70% already, hard to see how they can keep plummeting.

The people who have plenty of capital to invest could start buying now and in 5-10 yrs will make a killing.Of course if they are locked in it is a case of hold on and wait for the recovery.

Now if only I could persuade my wife to let me have some of our savings to invest, I'll see what she says


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## bruham (22 January 2008)

Hi Porper,

I love a super optimus (the worst is over). Seeing that the U.S. black day hasn't started.
But, I'll be up early to be checking on the Dow, trying to get the right direction for our markets when they open.
In another post I mentioned that I've traded BNB three times in three days trying to find the bottom, without success. I'm taking a bath.

So Wednesday will find me lurching over my keyboard ready for action.
But this time I'll be trading CFDs. I can then go short.

bruham.


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## trillionaire#1 (22 January 2008)

break out the popcorn and tune in to tonights us opening bell,should be an
interesting show.


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## tech/a (22 January 2008)

Might be right Porper---for this round.
There is normally a sucker rally in these meltdowns.
Watch for this one.
FTSE has reversed 5% but US yet to open.


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## drasicjazz (22 January 2008)

looks like they will have a 5% down as well ...as start...
http://www.marketwatch.com/
i ll do the popcorn, that's for sureopcorn:

should be a show .... they where better off going for a holiday for a hole 2 weeks


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## chewy (22 January 2008)

I think our huge drop was compounded by the fact we all new the US has to drop heavily tonight (after missing the holiday) so we all assumed that means tomorrow we will drop heavily too - therefore even though the prices today were very bad they will have to be significantly better than tomorrow, so the mindset is it seems crazy to hold when you the next day will be down big time. But perhaps that meant we overdid it and could even be up tomorrow even off a bad DOW night.


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## Porper (23 January 2008)

bruham said:


> Hi Porper,
> 
> I love a super optimus (the worst is over). Seeing that the U.S. black day hasn't started.
> But, I'll be up early to be checking on the Dow, trying to get the right direction for our markets when they open.
> ...




I am not suggesting for a moment that we are out of the woods, but if we have declined 20%, for the worst not be over we would have to decline over 40% all in all, I don't think this will happen, but who knows, I am certainly not piling in, just small quick trades.

I posted on another thread about being able to get ZFX yesterday with a 5% stop, get this at the correct time and move the stop up as the price rises and you have a low risk set up for the expected bounce.

There has been too much damage done for us to surge to all time highs but trading the bounces will be very profitable, as will being short at the right time, timing is the key, not something I am particularly good at.


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## agro (23 January 2008)

yeh it was panic selling - the market is run on *emotion*

professionals eliminate *emotion* and are based on *logic*

this video summed it up alright

http://www.youtube.com/watch?v=RLf566DKU84


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## bruham (23 January 2008)

G'day porper,

Porper, you were right, from now on you're my newest best mate. So what's going to happen in tomorrows trading. Can't wait for your news?

This morning I topped up my trading account then waited for 10am.
Opening trades came very fast. BNB and the rest of the market, took off.
I jumped in at 10.32am BNB, trading CFDs, going long. BNB reached a rise of three dollars, than stopped.
Then very slowly started to decend. If fact the whole market did the same thing.
Closed out BNB, waited about an hour to be sure, then again traded BNB, but this time I went short.
In at seventeen forty five, out at sixteen forty. I left plenty of profit behind. 

Argo, when I used to trade shares I never had any emotion.
But with CFDs I'm a complete ball of emotion and have no logic at all.
Still learning about these exciting things.

bruham.


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## Porper (23 January 2008)

bruham said:


> G'day porper,
> 
> Porper, you were right, from now on you're my newest best mate. So what's going to happen in tomorrows trading. Can't wait for your news?.




bruham, wouldn't have a clue to be honest, all I know is it is all about trying to get low risk set ups, if we only get the direction right occasionally we can still make money in this market by minimising risk.For example trading ZFX yesterday with a guaranteed stop loss would give you a free trade now as the stop would be guaranteed break even.(or should be).

I personally have kept the trade open as I expect the bounce to continue, could be totally wrong, we could crash 20%, but as the stop is breakeven, no loss made.






bruham said:


> Argo, when I used to trade shares I never had any emotion.
> But with CFDs I'm a complete ball of emotion and have no logic at all.
> Still learning about these exciting things.
> 
> bruham.




If you are too emotional you will lose money, been there done that, still do it sometimes, always the same result........failure.I agree trading with CFD's does tend to put the pressure on, but having a plan, reason for entry, specific open trade management plan, exit target etc will make it easier to remove the emotion.

Glad you made money today, hopefully most will have, because we are going to have some hard times ahead.


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