Share tips thread

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ukwill

8,871 posts

206 months

Monday 21st July 2014
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Finished with UKOG and DOR now - happy with the profit. Topped up MSMN, I think we're pretty much at the floor now (now watch it dive...).

Biscuit dunker

91 posts

128 months

Monday 21st July 2014
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Anyone with a few spare pennies may do worse than bunging the way of Bushveld Minerals (BMN) - so decent news today and good long term prospects. DYOR as they say...

trashbat

6,005 posts

152 months

Monday 21st July 2014
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Biscuit dunker said:
Anyone with a few spare pennies may do worse than bunging the way of Bushveld Minerals (BMN) - so decent news today and good long term prospects. DYOR as they say...
I'm in this, have been for a long time, and I would say there's a fair chance it will fall back again in the next few days, not to the previous low, but some way. Just don't get spiked.

It's a long term hold, i.e. years, and should pay off very nicely. Happy to elaborate on that if anyone's interested.

twinturboz

1,278 posts

177 months

Monday 21st July 2014
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Condi said:
RichS said:
twinturboz said:
Specifically with Plus there's a few easily identifiable support and resistance levels on the 1 year chart.
I only took a trade in this today because the set up seemed good to me, got long more or less around the gap fill with the rsi showing oversold, but having said that yesterday's down day was on increased volume and today the bounce is light in volume so I'll be trailing my stops up with the price and will probably trim the position at around 430p.
Not being funny but what does your second para mean in English? Sorry it's late and I'm knackered and I really was wondering; I find it fascinating. Thanks! R
Charting lingo.


He is having trouble finding natural support and resistant levels (where the stock is likely to stop going down, and where it is likely to stop going up). He bought some stock around a point at which the stock had gapped (opened lower than it closed) and the Relative strength index showed it to be oversold. However, yesterdays move lower was on a day when there were lots of trades, and the up day was on far less volume, so he'll put in a trailing stop loss and follow the stock upwards. When it gets to 430p he'll book some profits and sell part of his holding.
Sorry for the late reply but more or less what Condi said. I'll try my best to explain my thinking behind the trade but bare with me, might get a bit longwinded.

Support and resistance levels are the most basic. If you look at a chart for any particular stock you'll see points where the price seems to bounce (support) or alternatively points where the price can't get above (resistance).

Support levels is where buying interest in that stock is strong enough to overcome selling pressure and so the price will turn back up from this point. Resistance is the opposite so it's where selling pressure overcomes buying pressure and the price of the stock moves down.

To complicate it a bit further, sometimes when the price of a stock pushes through a support or resistance level by a large amount then the levels can reverse and what used to be a resistance point will turn into support and vice versa.

The reason why these levels occur is human phycology. Take any stock you have 3 types of traders/investors/market participants whatever you want to call them.

1. Longs i.e those that bought the stock.
2. Shorts i.e. those that borrowed the stock, sold it and hoping to buy it back cheaper.
3. Uncommitted i.e. those sitting there just watching the action.

Take a stock thats moving higher from a support level, the guys that are long are happy but wish they had more stock, if the stock comes back to the level they will buy more. The guys who were already short are not happy and are praying the stock dips so they can get out of their short position at break even.

The uncommitted are in 2 groups those that already sold and those that are undecided. The ones that sold are mad they sold early after seeing the move up and say to themselves they'll get back in where they sold if the price comes back there. The undecided see the move up and realise prices are going higher, they are looking to get into the stock on the next buying opportunity.

In summary all of them want to get back in on the next dip and hence you have a support level.

Now take the same group and say prices move lower through the support. All of them that bought now are loosing money and say to themselves if I break even I'll get out, this causes a resistance level.

RSI is as condi said is Relative Strength Index, It's an oscillator that is plotted on a scale of 0-100. Anything above 70 is considered overbought and anything below 30 is considered oversold.

Volume is another key thing that should be on your chart. In short it's the level of trading activity in a particular stock. You can use volume as a way of confirming the moves that you see in a stock.

The basic rule being that volume should increase in the direction of the trend, in other words as the price of a stock moves higher the volume should increase and any pullbacks that occur in an uptrend should do so on lower volume.
When you see volume divergence i.e. moves up on lighter volume or a pull back on heavy volume those are warning signs that the trend maybe about to change.

Gaps are spaces which are left on the charts where no trading has taken place, so a gap up is where the stock opens higher the next day than where it closed the previous session and a gap down is the opposite. Most of the time but not always gaps are eventually filled.

Finally going back to that specific trade I took a long position where I did because:
1. The price had filled a previous gap that was left in Feb, I figured there would be support at the bottom of this gap
2. The rsi was confirming that the stock was oversold.

I chose the exit price based on the next resistance level above the price that I got in. I didn't want to hold it long term because there were 2 warnings signs, the previous day's selling occurred on heavier volume and the bounce back on the day where I entered the long position occurred on lighter volume both signs showing divergence.

If you go back and look at the next few trading sessions after I exited, the next day the price pushed through the 430 resistance up to the next resistance level at 451ish. Here it stalled and again the volume was even lower than the previous day a further warning sign had you not exited on the previous day, the stock couldn't hold the high of the day and closed a reasonably lower at around 400ish which was your last warning sign.
The next session stock gapped down at the open tried to move higher couldn't and closed lower than the open, by this point had I still been in my original position most if not all of my profit would have been wiped out.

None of this stuff works for certain 100% of the time but it just helps to navigate some trades or gives you clues along the way.


Edited by twinturboz on Monday 21st July 17:05

Biscuit dunker

91 posts

128 months

Monday 21st July 2014
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trashbat said:
Biscuit dunker said:
Anyone with a few spare pennies may do worse than bunging the way of Bushveld Minerals (BMN) - so decent news today and good long term prospects. DYOR as they say...
I'm in this, have been for a long time, and I would say there's a fair chance it will fall back again in the next few days, not to the previous low, but some way. Just don't get spiked.

It's a long term hold, i.e. years, and should pay off very nicely. Happy to elaborate on that if anyone's interested.
Have to agree re short term but think the longer term (2-3yrs) may well produce significant returns particularly given the potential wrt Vanadium.

jeff m2

2,060 posts

150 months

Friday 25th July 2014
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I'm not sure what this will do to REM (generate interest maybe)
Or of course suck money out to go to Bacanorabiggrin

But Bacanora is up 27% today on the news that its admission to AIM is "for sure"

The AIM offer price is 30p...it will/should fly past 60p when it begins trading.

The Canadian price (BCN.V) is $1.40 Canadian, US price(BCRMF) is $1.30.
Dollar/Pound @ 1.7

Should be certain money.

Oakey

27,523 posts

215 months

Friday 25th July 2014
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Maybe I've got the wrong end here but I thought it already was trading? It closed at about 83p.

gaz1234

5,233 posts

218 months

Friday 25th July 2014
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it is

jeff m2

2,060 posts

150 months

Friday 25th July 2014
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Oakey said:
Maybe I've got the wrong end here but I thought it already was trading? It closed at about 83p.
Ah.. I thought it opened in August ! (I'm in the US)
Twas todaysmile

So 30p to 83p..... better than a poke in the eye with a blunt stick, hope you guys got some.




Edited by jeff m2 on Friday 25th July 19:29

princeperch

7,911 posts

246 months

Monday 28th July 2014
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im hoping barc is going to get a bit of a boost this week if their results are as good as some are saying they will be. who knows tho. it is a v unpredictable share at the best of times.

Mahogany

382 posts

208 months

Monday 28th July 2014
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princeperch said:
im hoping barc is going to get a bit of a boost this week if their results are as good as some are saying they will be. who knows tho. it is a v unpredictable share at the best of times.
Me too.

News said:
Barclays is set to surprise number crunchers in the City with its second quarter results due out on Tuesday. The lender will announce that the assets held by its "bad bank" are being reduced much more quickly than had been expected, perhaps by as much as £30bn. That is thanks to the improved market sentiment, with strong demand seen from hedge funds and fixed income investors for the heavily discounted assets. In May the lender outlined its intention to cut the size of that non-core division to approximately £80bn in assets, from about £115bn, The Times writes.

LivingTheDream

1,753 posts

178 months

Monday 28th July 2014
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jeff m2 said:
I'm not sure what this will do to REM (generate interest maybe)
Or of course suck money out to go to Bacanorabiggrin

But Bacanora is up 27% today on the news that its admission to AIM is "for sure"

The AIM offer price is 30p...it will/should fly past 60p when it begins trading.

The Canadian price (BCN.V) is $1.40 Canadian, US price(BCRMF) is $1.30.
Dollar/Pound @ 1.7

Should be certain money.
REM having stated today that they own in excess of 11% of BCN shares - that should generate serious interest!

bad company

18,484 posts

265 months

Monday 28th July 2014
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I have 3 real 'dogs' in my portfolio - Glaxo Smith K, Barclays & Standard Chartered. I have read both buy & sell tips for all 3 so undecided for now. scratchchin

briangriffin

1,570 posts

167 months

Tuesday 29th July 2014
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Can anyone recommend an easy and straightforward place to buy shares online? Thanks

bad company

18,484 posts

265 months

Tuesday 29th July 2014
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briangriffin said:
Can anyone recommend an easy and straightforward place to buy shares online? Thanks
There are many possibles. I use Hargreaves Lansdown for funds & Halifax for shares - https://www.halifaxsharedealing-online.co.uk/_mem_...

Works well for me .

K12beano

20,854 posts

274 months

Tuesday 29th July 2014
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Wheeeeeee!!!

Been holding a little of Northern Graphite (NGC.V) for absolutely ages, or so it seems.

I'm technically £23 up!! Which is better than having lost 60%......even if only on paper!

Jonboy_t

5,038 posts

182 months

Tuesday 29th July 2014
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K12beano said:
Wheeeeeee!!!

Been holding a little of Northern Graphite (NGC.V) for absolutely ages, or so it seems.

I'm technically £23 up!! Which is better than having lost 60%......even if only on paper!
woohoo You could almost buy some dealing fee's with that much!!


Hollerout

3 posts

118 months

Tuesday 29th July 2014
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briangriffin said:
Can anyone recommend an easy and straightforward place to buy shares online? Thanks
As a newcomer to purchasing shares 6 months ago I did the research and found https://www.share.com to be really informative and well priced for purchasing and selling.

10 holdings in, I've found it a piece of cake to use.

Take a look and see what you think.

trashbat

6,005 posts

152 months

Tuesday 29th July 2014
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I'll second that, been using them for ages.

Tip: buy 500 shares in Share Centre itself and opt for frequent trading, and your trades cost £5.25 flat fee each. Also one of my best holdings, albeit miniscule.

briangriffin

1,570 posts

167 months

Tuesday 29th July 2014
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Cheers guys set my first buy for tomorrow when the market opens. Always meant to reinvest shares from my old employers in apple and vale a few years ago but money went on a house instead. Would have double my cash if I'd have invested in them when planned too. Ah well got the house for a good price anyway haha
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