Well no one can predict a C/R...
And it's too risky to go long or short a share thats at its all time highs
That's why I doubt any of them have gone long above $2.
VAU - Vault Minerals
- Thread starter Uncle Festivus
- Start date
Well no one can predict a C/R...
And it's too risky to go long or short a share thats at its all time highs
That's why I doubt any of them have gone long above $2.
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
- Joined
- 23 February 2012
- Posts
- 30
- Reactions
- 0
I know this has been responded to already, but someone is foolish and a poor trader because they have gone long on RED and didn't see a CR coming?
Is this your premise?
Really?
Keep in mind there are such thing as guaranteed stops for instances like this.
Hi Guys, a few important questions to be asked of RED at the beginning of this week:
Will RED seek a temporary suspension at the open this morning to get a day or so to finish its CR?
Once it does come on-line:
What price will RED open at?
Will the placees support the price from the outset?
Was that dodgy bid of $2.38 an indication of strength at the commencement or pure bluff?
Will RED put out another announcement so soon regarding its production to date?
I'm sure there will be some interested observers...
Will RED seek a temporary suspension at the open this morning to get a day or so to finish its CR?
Once it does come on-line:
What price will RED open at?
Will the placees support the price from the outset?
Was that dodgy bid of $2.38 an indication of strength at the commencement or pure bluff?
Will RED put out another announcement so soon regarding its production to date?
I'm sure there will be some interested observers...
Why nervous?.
The suspension is being sought to complete legal documentation regarding the book build which has now closed. Thus the money is just about in the tin. (And if not done yet I understand it was over-subscribed by certain investors).
The pricing I guess is yet to be confirmed, but whatever, it should go up once the things are bedded down - no insto will sit back without supporting its placement IMO!
I just want them announce some production.
ever the optimist. but this whole sage is making a lot of investors nervous. not all have years to wait to see some return for their investment.
Don't tell me I was wrong, that there are triplets, not twins, lol!
eh MrLister, this sort of stuff is good for one's constitution
Don't worry, RED shareholders will be fine, believe me (I'm a caring sort of guy!).
- Joined
- 20 May 2011
- Posts
- 1,544
- Reactions
- 1
??
No I said I think it's a poor way to look at trading if - you buy at some price, the sp goes up a lot and then retraces back a lot and you're still in the green...but the profit is much smaller than it could have been - and to be ok with that.
I for one would not be ok with that. I'd be pretty damn mad.
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
Well I for another one wouldn't be if I was on a longer time frame.
It happens.
Its called Peak to Valley draw down. If like our local fab Four member (Beatle) and you have an extended time frame than you'll suffer a lot of these.
If your a shorter time frame trader you'll get caught now and again.
Its how you handle these draw downs which will measure your
longterm success.
You can manage them with all sorts of stops or you can ride them out.
But when a Peak to Valley draw down turns into a capital base draw down as in loss
your either really really un lucky with your timing or you have no idea about risk management and risk mitigation.
RED has been at around $2.30 in 10 years. How many times now, 3 times? (someone correct me if i'm wrong, too lazy to look up chart)
Anyone going long RED at $2.30 for a 'potential breakout'? Not likely. (for short term traders)
Need to see signs of a breakout first.
i.e. resistance @ 2.30 range too strong.
Unless a share has trend traded, e.g. NST RRL, I do not buy shares at their all time highs.
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
Ok not that I agree but the highlighted bit why wouldnt you go short at resistance---you could do it with CFD's.
So you would happily go long RED at $2.30?
About shorting RED at $2.30, I wouldn't do that either. Because of fundamental factors and that it is being added to the asx 300.
If RED didn't have the C/R, I'd bet it'd still be stuck in its trading range of $2.15 - 2.30. Again, too much risk for reward.
Your thoughts?
- Joined
- 20 May 2011
- Posts
- 1,544
- Reactions
- 1
Wouldn't it be safer if it's just rejected resistance, say at 2.25 for RED and ride it down to support?
hey i hope there not asking for 20 mil, then the thing is over subsrcibe by 20 mil and they decide to take it ?????????
- Joined
- 23 February 2012
- Posts
- 30
- Reactions
- 0
I went long at 2.30 2 days before C/R halt, mainly for fundamental reasons, happy to ride out some movements. But obviously not overly happy about the C/R, but that happens.
Also risk inherently is lower with RED than most specs. They have assets. They own a mine. If production is delayed further they will drop, but it shouldn't be overly dramatic. Ie. If at end of April, production is delayed, SP will suffer, but not as much as it will gain if they announce they are at full production, which will move SP more closely in line with NPV.
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,400
- Reactions
- 6,317
Well I'm not trading it and have discussed what I'd do if long
But as you say doing nothing much
So won't bs interested on doing anything with this unless price indicates opportunity
With either s break out or a strong rejection of a test to the low side