Lost $1600 in one day trading OZL

[trillionaire#1]

OZL ,like the majority of this sector has been declining for a while now ,i notice this stock reached $1.93 today,im sure thats pissing you off now!if we could all have a crystal ball ,eh?

 

[fenis]

I bought ZFX at $3.34 equivalent not to trade but as a long term 'fundamental' investment and I just got out at $1.60 (about a 53% loss). I invested 4.8k so lost 2.5k lol. The reason I bailed and didn't stick to holding long term is because I think we are in for a serious near depression as I believe the current 'credit expansion' system in the US is flawed and doomed to failure - so I'm getting out now while i can.

That 4.8k was half my saved capital and I'm only 23 and have a good job so I don't mind a little hard lesson learnt!

 

[apra143]

Interesting stuff regarding money management in this thread. Sounds to me like something that all beginners (like me) could benefit from.

Great way to minimise wipe outs while you are still learning and building confidence.

Money management = perhaps the most important thing for traders?

 

[mazzatelli1000]

Interesting stuff regarding money management in this thread. Sounds to me like something that all beginners (like me) could benefit from.

Great way to minimise wipe outs while you are still learning and building confidence.

Money management = perhaps the most important thing for traders?

One of the most important things
If you dont also focus on good setups, entries, exits then it'll be a struggle still.

I'd say for me personally, keeping my emotions in check has the top priority - and this can be helped by money management

 

[posh]

Bought 10000 OZL at 1.65 yesterday, sold today at $1.50 - shocking

I sold like any newbies would in panic - maybe I should just hold OZL and wait for next week, I don't know I just lost control - all I wanted to do was sell, sell and sell to cut losses.

The market is too volatile for the beginers at the moment, I think I should sell my portfolio and sit on the sideline until condition improves.

why the hurry? just hold on to it for a while. my trades in the past (i'm new too) have gone down in the day or two after buying but then i sell in a week's time and make a profit.

 

[posh]

also i've been told ozl has good potential for long-term buyers. i'm just not willing to cut in anymore after it's gone up that much.

 

[Nyden]

May I ask what appeals you guys to OZL? It's just got me curious as to why this is such a heavily traded stock ... and more importantly, why so many self-proclaimed beginners trade it?

Is it purely the volatility / chance for a quick-gain, or a magic belief? There are far better positioned resource companies in Australia - with far better diversification (BHP, for example); so - why?

 

[posh]

One of the most important things
If you dont also focus on good setups, entries, exits then it'll be a struggle still.

I'd say for me personally, keeping my emotions in check has the top priority - and this can be helped by money management

i agree, if you can't keep your emotions in check, you money management won't be much better.

 

[happytrader]

May I ask what appeals you guys to OZL? It's just got me curious as to why this is such a heavily traded stock ... and more importantly, why so many self-proclaimed beginners trade it?

Is it purely the volatility / chance for a quick-gain, or a magic belief? There are far better positioned resource companies in Australia - with far better diversification (BHP, for example); so - why?

Hi Nyden

This particular stock has excellent liquidity and premium in the ETO market. For example If you had bought the stock for around $1.76, you would have been able to receive approximately 13.5 cents at a strike price of $1.80 with a 30 October expiry. That means that if you bought 10,000 shares at these prices you would have 10 contracts which would provide you with a premium or rent of $1300 for just over a month. If the stock should fall in price you are still entitled to keep the premium as well as the stock which would cover some of the downside risk. If the stock continued to rise past your strike whether it is a win or a loss is really up to ones own interpretation after all you could do it all over again.

Cheers
Happytrader

 

[Glen48]

I guess your stop should be 5% over 10 K and 10% under that make it hard if you have a 100K
Have a look at LNC you may get your money back.
Can't see you working as wall st banker they would have let it slide and then rang George for help got a Golden Parachute and new job under a different name working a stop go sign for awhile until the dust settles.