Steel & timber down

[GreatPig]

Steel & timber companies are down significantly today. Boral, Gunns, Great Southern Plantations, BHP, Bluescope, and Onesteel all taking a big hit.

And I've got four of them in my portfolios! Just shows you need to be wary of too much exposure to one sector.

Cheers,
GP

 

[stefan]

GP,

And so the question arises:
Do you add more while the price is low? Or do you dump them to narrow your losses....

(Just to show how one can't apply one "best option" strategy to everything... I'm refering to the $500 thread and some statements I found in there...)

Happy trading

Stefan

 

[GreatPig]

Stefan,

I don't agree with the idea of buying more as the price falls. My general idea is to buy when the price is turning up and sell when it's turning down, if those turns look like the start of significant direction changes.

Of course it's hard to pick the turns, and you could miss the best time if you wait until you see it rising again, but I think on long-term average, that way would give better results.

I see Bluescope and Onesteel have recovered a little now. I'm trying to make my decisions at EOD, rather than during the day, so I'll wait until I get today's prices before making any decisions.

Cheers,
GP

 

[stefan]

GP,

You are just paper trading, right?

Just to make sure.

Happy trading

Stefan

 

[GreatPig]

You are just paper trading, right?

Yes, at this stage.

I realise what I'm doing is not entirely accurate, in that I base buy and sells on closing prices for the day just finished, whereas in reality they'd have to be on some price the next day. Occasionally that could be significantly different, if the price gapped overnight, but I think it's close enough to see if my strategies are working or not.

Cheers,
GP

 

[stefan]

I realise what I'm doing is not entirely accurate, in that I base buy and sells on closing prices for the day just finished, whereas in reality they'd have to be on some price the next day. Occasionally that could be significantly different, if the price gapped overnight.

I'm glad you said that.

I think you're well on your way there. Looking forward to read more about your picks!

Happy trading

Stefan

 

[GreatPig]

Well my portfolios are definitely looking healthier this morning. Most stocks seem to be up.

Cheers,
GP

 

[stefan]

And what's the result at the end of the day?

I'm about to complete my own portfolio which I will trade live for a 6-12 months holding. Just about to figure out how to spread the money.

Happy trading

Stefan

 

[GreatPig]

And what's the result at the end of the day?

Significantly up on yesterday's close, but not quite as good as in the morning.

In the afternoon a few of the bigger gains came down again, but then the worst few (like Qantas) picked up.

Cheers,
GP