My first trades
- Thread starter zwiiyt
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No Ordinary Duck
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and----------------
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...... do you know how much you are risking on each trade? Will you watch if MAD shares drop in price to 0.20 or EVN to 1.30 ?
Do you have plans to sell them at set price targets or are you using a trailing sell exit to protect any profits if you see them?
Do you know the break even price for each trade (including your brokerage costs)?
Are these trades started with a planned approach that you have tested and know to be profitable?
Do you have plans to sell them at set price targets or are you using a trailing sell exit to protect any profits if you see them?
Do you know the break even price for each trade (including your brokerage costs)?
Are these trades started with a planned approach that you have tested and know to be profitable?
Well, I don't have any plans to sell them. IN a book I read, it said that there is no reason to sell a rising stock. What I will consider doing soon will be to put in a stop loss, so that should it drop off, I will still earn a profit.
The books i have read are 'how i made 2 million dollars in the stock market and the battle for financial survival.
As for the brokerage, I have none. I am taking advantage of the $600 free brokerage from commsec.
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An approach that is used with a lot of other important factors. Looking at MAD i'd say if you had of bought before the break out then that that may of been an acceptable statement.
You're just gambling if you don't have a plan in place for these trades.
What exactly do you classify as 'before the breakout.? I bout it at 0.500...Isn't that before the breakout? Also, i am not gambling because i minimise my risks through stop losses.
What do you mean by a plan? I have no idea when i should sell the stock. I will try to sell it at its top, but I cannot in anyway predict that.
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There is enough information around these forums and web to explain what a trading plan is.
Good luck with your trade, I hope you survive to trade again!
Survive?? what do you mean? I am already up $80 dollars. besides that, i have a lot more capital plus a steady job. I am not going to go bankrupt here...
Sorry if i seem rude, but i am only going off what I know. After reading nicolas darva's book, i was told that one must plan going into a trade, but one one is in, there is really nothing one can do in terms of predicting the top.
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The SP was at $0.20 in January. I'd say that was where the breakout was.
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If you dont mind me asking how old are you? (nothing wrong with being young (if you are), I bought my first shares at 12). I am just curious as to how you came to the decision to start trading?
Also what made you chose MAD and EVN? Was it on your own analysis? due to a broker recommendation?
Why did I choose EVN? I chose it because I know that the price of GOLD will rise. What companies would profit from a rising gold price? Well gold mining companies. After looking through all the gold mining companies on the ASX, i thought that EVN was the most buyable for me (low price) and looked safe (the price was not volatile). So when people realise gold will reach 2000, I think that EVN will rise.
As for my age, i just finished high school and am trying to earn money.
MAD I bought because I noticed a few days ago that it rose from 0.5 to 0,59 and then dropped off to 0.5. I then read about the company. It tunes out that they have more than 30 years of experience drilling oil. I also noticed that the price of crude is rising (because of the falling dollar).
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How do you know that? Thinking you know something can be very dangerous. There are no certainties in the market, if there was there wouldn't be a market.
This is a gamble, plain and simple.
The price of gold will rise because America and Europe are keeping interest rates low. This action depreciates fiat currencies. For this reason gold will rise.
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Nicholas Darvas was trading stocks with much less volatility. While I enjoyed reading about his success, he was lucky that he was trading in an extremely big bull market.
Good luck with your trade.
Yes, I got that impression too. TO me it seems that the current state of the ASX is pretty boring (bearish). Why is it that stocks in the NYSE can reach $100 but in Australia they struggle to get $50?
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I'm not trying to sound rude and I commend you on wanting to get into investing/trading at a young age, but you're question is extremely naive and I would suggest really learning and understanding the basics of shares before you go and blow your money.
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What research did you conduct to determine that EVN was the best value gold stock on the market (given your criteria outlined)?
I believe in the long term potential of gold, but not very gold stock will deliver strong returns because of a rise in POG. It comes down to the potential of their projects, the management team, drilling success, funding capacity, etc, etc, etc.
You also need to move away from the concept of low price and look at the market capitalisation. for example:
Company A has 100 shares at $1 each = Market cap of $100
Company B has 200 shares at 0.50 each = Market cap of $100
Both company's are worth the same amount even though one is "priced" lower than the other.
Also buying a company cause they have 30 years experiencing drilling oil means nought. I follow MAD occasionally and do believe it is a good stock, but you have essentially taken a punt that the price will continue to rise, even though it has already had a massive run over the last few weeks.
I know our comments may seem harsh but we are trying to protect you from blowing up.
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As per my post above the dollar value of each share means jack. Please research this concept at the very least.
I understand. I know that it was probably just luck that i picked it, and that is one bet that I can't count on holding for long. Thank you for your ideas. I obviously have a lot more to learn. Do you have any books you could recommend?
