Australian (ASX) Stock Market Forum

The High Risk Trading exercise

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Yes some good points.
Im sure we will be able to comment on various points throughout the course of the exercise.

M/W
I notice you use T/D analysis on you Point and figure charts.
Interested in your comments. (On T/D)
 
prawn_86 said:
With hindsight of course he would be better off. I guess the thing with speculative stocks is that they fall (and gain) by a lot larger % than the overall market. So at what point should he buy back in? 50% lower, 65% lower? Or should he buy back in when the ASX200 (not representative of his portfolio) 'turns'? If so, that means he has to add that in to his analysis.

Unless something fundamental changes, such as new projects, or existing ones sold off he continue to have faith in the stocks.
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I guess this is where one's investment philosophy comes to the fore. If he still had faith in the downtrending stocks, I take the point. Probably I shouldn't be commenting because I just don't do speculative stocks.


I guess the key to high risk like this case, and what Tech is trying to demonstrate, is to make sure that the money is not needed (my old man could easily afford to lose it all when he started the portfolio) and you can afford a few years of nothing happening (or unrealised losses).
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Sure. But none of us like to lose money and/or not maximise our profits. I just sometimes think many don't put enough focus on capital preservation.


nomore4s said:
The only flaw I see in this is how would he have known which stock was going to be the supa dupa performer?
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When it either wasn't falling as the others did, and at least holding its own, if not actually going up?





That appears to be a very good filter, might be worth looking into.[/QUOTE]
 
Julia said:
When it either wasn't falling as the others did, and at least holding its own, if not actually going up?
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Specs pretty much all get sold off during a crash/correction. The stock in question went from a pre GFC high of 36c to a low of 4c, so on this basis it performed exactly as most of the others did. The high it reached this year was $6.25 (now about $3.60)
 
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