My watchlist commodities stocks (my fave actually): AGO, FMG, ILU, LYC, MML, NCM, PRU, and WPL got hammered again and again and again ......... :/ on the other hand, CBA went spiral...nearly marching to its 2011 high .. maybe we soon to see $58 a piece for this.
Maybe working off indice charts might assist? Don't catch falling knives. XMM still in the doldrums, although has formed a small basing pattern over the last week, HUI in a vacillating pattern at the moment.... Time to just sit out and analyse your possible investments.
Three criterias: being producer (except Lynas), liquidity, and at the price range I can buy with leverage. Lynas is unique ones...it is very liquid, trading 12m shares on average per day plus the SP is volatile due to current issue they have. NCM and WPL....well I use NCM and WPL as "the markers" for other junior stocks who are in the same industry. This is my solely view and I know that there are other stocks apart from the above list performing better and I am sensing that you are going to shoot me because you often do research in depth on company fundamentals before investing plus you are a long term investor ;P I welcome and love to hear your thoughts on the above stocks though
Ok cool. What do you mean when you say leverage? What do you want to achieve with your strategy? and what is your time horizon?
I can tell you my criteria for my strategy, but my strategy would cancel most of these stocks out of contention - so that probably would not really be helpful to you
To achieve 10% return from a trade. The time horizion varies. I will use S&P500, ASX200 and Spot POG first to look at the cycle, then go to a stock by their indicators: bollinger bands, macd, rsi and momentum to determine the exit strategy. For instance, end of May bought pru at $2.50 then two weeks roughly, it reached $2.75 and I closed my position. Again, sometimes it didnt work out. I took a punt on GRY and capped the loss (after getting a good advice from my mate as well as a SS member here lol )
hope you dont mind to share it with me. Afterall, this is another place to learn anyway *sit down and ready to hear*
Arrrr ok, I see why you need liquidity Im no help to you sorry - that strategy seems to depend more on movement than value So have you identified the weaknesses of your strategy?
Yes. The problem with cfd, once you step on the wrong foot, you have always 'the devil advocate' inside you and telling you: 'cmon..buy more to average down'. This temptation is hugh since you lay out only a fractional capital whilst you have a true full exposure.
Its sounds like you're taking on way more risk than I would be comfortable with. I couldn't/wouldn't take on that much risk - thats just me.
IMHO this is a quote to live by in trading. This concept was pounded into me in my early trading days, and I regard it as gospel. It has saved me a lot of heartache (losses). Lunardragon, with all due respect, please analyse and study up on what the act of averaging down achieves. Have a look at past performance of your average downs. Chances are you are throwing good money after bad. The markets don't lie, and conviction and belief that you are right, and the market wrong, can be very expensive.
Personally i just don't see the upside for stocks like FMG. Silver and gold producers are the place to be right now IMO , producers or non precious metals like Iron Ore will get hammered when China falls.We are already seeing that start of that now.
If you read his posts - his strategy is not 100% dependant on performance but movements So theoretically the company culd be crap, just as long as its still moving
