ITT: Aussies Brehs, ASX trading club... join here!

[ASXGuru]

More and more bad news out of Japan. Radioactive particles about 9 hours away from Tokyo at the moment. Markets have dropped their guts.

All I've been doing today is taking profits on short positions and de-risking as much of my open positions as I can.
Instincts are telling me to start buying BHP but I don't want to catch a falling knife.

When its absolute pandamonium its generally the best time to invest. Erring on the side of caution I would stay out for now though till we know there is a bottom. Markets have given back gains which take us to September 2010! 6 months worth of gains wiped out in only 18 trading days.

Absolute blood bath.

[ASXGuru]

For those holding PEN then don't throw more cash at it yet. If you're happy with the company then wait for the selling to stop before you throw more money at it.

[SuperBrah69]

I think all of us holding PEN should just remove it from our watchlist for the next few weeks unless you want to buy more of course lol

[ASXGuru]

This is some of the worst selling seen in a very long time. The only selling this frantic has not been since the start of the GFC and also before that in the crash of 1987.

Selling in to these markets is a silly thing to do. You are getting the worst possible price you could be selling at. The hardest thing to do now is to position yourself for a bounce.

Now is the time to be patient and watch the markets for clear signs of recovery.

[kazooie]

Agreed, but since I'm in CFDs every drop hurts as I'm getting closer and closer to margin calls.

[Appille]

Goodnight sweet PEN

When would be a good time to look into buying some PEN stocks/it rebounding?

[EconLift]

Thinking of waiting until Thursday then putting 3k into PEN.. Not sure though.

[ASXGuru]

Agreed, but since I'm in CFDs every drop hurts as I'm getting closer and closer to margin calls.

You might want to consider closing those positions out if that is the case and preserving your capital.

What sort of rates are you paying on your CFD trades?

That can make a big difference as well.

I'm waiting to go long on some XJO CFD's on the first whif of an up day or by day trading some XJO options on a daily basis.

March expiring (they expire in a couple of days) 4600 puts today doubled in value!!!! 100% return in a day per contract. Also Nikkei index CFD's made a killing on the short side today as well.

[SuperBrah69]

I bought more PEN at 79 cents today, like 1 hour before the radiation leakage broke news. In hindsight it was really stupid to buy at that time, should've waited it out.

I wouldn't go near PEN until we get confirmation that the crisis is at least under control and no meltdown will be possible. I'm going to take a few days off of watching the shares and try grow back the hair that I've pulled out today.

[S_P_Q_R]

lol

everyone is getting rapped hard

But like it was mentioned above ... stay cool and dont panic and sell off your stocks ... things will go back up again.

If anything, this is the time to buy ... even if we are yet to hit the bottom.....

[ASXGuru]

lol

everyone is getting rapped hard

But like it was mentioned above ... stay cool and dont panic and sell off your stocks ... things will go back up again.

If anything, this is the time to buy ... even if we are yet to hit the bottom.....

Spot on mate. I've been buying now but not in lump sums. Dollar cost average your entries. BHP in the $42 range is a bargain if ever I saw one!

I'm looking to load up on some June BHP $42 calls and also do some short term trades on the XJO. Today 4600 March puts on XJO doubled in value. If we have a rebound on news the nuclear disaster has been salvaged expect the opposite to happen. If you have massive losses on something I'd take the loss and free up cash.

Make sure you've got some cash on the side (up to $5k minimum hopefully) and wait for the bounce.

If you don't have cash spare then just sit and wait or free up one or two holdings that are hopeless and try to recoup losses.

Stock traders will be feeling it worse than options boys though cause we have limited losses!
I still maintain a very bullish stance on AWC and AZX as well.

[ASXGuru]

I bought more PEN at 79 cents today, like 1 hour before the radiation leakage broke news. In hindsight it was really stupid to buy at that time, should've waited it out.

I wouldn't go near PEN until we get confirmation that the crisis is at least under control and no meltdown will be possible. I'm going to take a few days off of watching the shares and try grow back the hair that I've pulled out today.

U stocks have been sold off massively and you did the brave thing and tried to catch a falling knife.

You might be better off doing a pairs trade. That means going long something and going short something else.

As an example U is massively out of favour you might consider shorting more U stocks and going long defensive stocks such as gold miners.

The above trade probably isnt worth it now cause U has been sold off so heavily but there is certainly a sector pairs trade that can be done. Long STO and short OSH. Thats in oil and gas.

Last pairs trade I did was long NCM (gold) and short EQN (copper) that was about 3 weeks ago. I held the position for one and a half weeks. Good trade.

[ASXGuru]

As a last point for today, methinks that it would be a good time for Gillard to come out and scrap the carbon tax while people's portfolios and super balances have taken a pasting. RBA should also look to stimulate our financial markets again to recover becuase this has been the sharpest sell off for a long time and is causing havok at the moment.

[SuperBrah69]

As a last point for today, methinks that it would be a good time for Gillard to come out and scrap the carbon tax while people's portfolios and super balances have taken a pasting. RBA should also look to stimulate our financial markets again to recover becuase this has been the sharpest sell off for a long time and is causing havok at the moment.

Lol expecting Gillard to do anything intelligent, I have a better chance at making a profit going long on PEN tomorrow.

How did a WOMAN and a WRANGER become PM srsly... It's basically the misc's worst nightmare.

[BegMascles]

Great way to get some experience!

Even if you can't short it doesn't matter becuase most people will never short anyhow because its more risky.

The key to winning these types of competitions is position sizing. I.e. how much do you put in each stock?

This is probabbly the most important factor in a profitable trading strategy next to exits.

The real secret to winning these is actually:

1. Punt heavy and get lucky
2. Find an arbitrage floor in the game system and exploit the **** out of it.

If I were to use my real world trading processes in the comps, I'd rarely win.

[Scofield]

Aussie Ceo checkin in...

You brahs should just try to buy the dips with leveraged ETFs. No margin calls and greater returns.

[Brosevski]

PEN...fuuuuuuuuuuu

oh and in on ASX thread.

teach me brahs!

[Hautacam]

holy fukk @ pen, man I wish I had a shorting acct, would have shorted the fukk out of ext the last 2 days.

[ASXGuru]

The real secret to winning these is actually:

1. Punt heavy and get lucky
2. Find an arbitrage floor in the game system and exploit the **** out of it.

If I were to use my real world trading processes in the comps, I'd rarely win.

Haha true mate.

Biggest difference is that in games you're not playing with real money. Its easy to punt cash you don't have!

You'd probabbly know how much more important risk management is in real trading.

[ASXGuru]

Aussie Ceo checkin in...

You brahs should just try to buy the dips with leveraged ETFs. No margin calls and greater returns.

Good point breh.

ETF's havent been brought up yet in this thread. Well worth the discussion.

[ASXGuru]

holy fukk @ pen, man I wish I had a shorting acct, would have shorted the fukk out of ext the last 2 days.

Even if you have an account that allows you to short it depends on whether a stock is shortable. For a stock to be shortable you need to be able to "borrow" the stock first to sell it in the market.

Many stocks can't be borrowed.

The answer is with OTC CFDs but this is a risky game.

[ASXGuru]

Lol expecting Gillard to do anything intelligent, I have a better chance at making a profit going long on PEN tomorrow.

How did a WOMAN and a WRANGER become PM srsly... It's basically the misc's worst nightmare.

Gillard is a KFC Prime Minister.....2 small breasts, 2 large thighs all in a red box.

[EconLift]

Good point breh.

ETF's havent been brought up yet in this thread. Well worth the discussion.

Index EFTs aren't worth the bother. For a 5 year 3-5% return you're better off putting your money into an online savings account like the NAB iSaver and getting 4.75% p.a with zero fees.

[JasperBedford]

Goodnight sweet PEN

When would be a good time to look into buying some PEN stocks/it rebounding?

Thinking of waiting until Thursday then putting 3k into PEN.. Not sure though.

IMO you should wait until the Nuclear situation in Japan stablises, then you wanna see some support in the SP, e.g. some evidence that it will not drop (quickly) much further, it may well keep tumbling tomorrow and the rest of the week. Thus you may wanna see a black or green day before you decide to enter. It will help greatly if you can watch the market during the day.

I think it will take a couple of months for the media frenzy to die down regarding nuclear so I don't think there will be any hurry. It's just funny that two great fundamental announcements were made on days that saw the SP drop 30%. The Karoo ann. in particular, the grades there are terrific.

[JasperBedford]

Just thinking how catastrophic the markets were today, lol, at least it wasn't mainly just the materials sector today, if we're going down EVERYONE is going down.

Nikkei down 11%, hory ship!

You gotta love the Buff.

"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful

"Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well."

[Hautacam]

I'm getting killed atm, I only have two gas stocks as well.

Feelsbadman.

[SuperBrah69]

DJ down 137 points
FTSE 100 down 80
DAX down 219

Going to be a bloodbath today. Not logging on to Commsec today lol...

[Scofield]

Index EFTs aren't worth the bother. For a 5 year 3-5% return you're better off putting your money into an online savings account like the NAB iSaver and getting 4.75% p.a with zero fees.

Breh, a leveraged etf can return 3x the underlying market it tracks. The nasdaq returns 8% in one year, TQQQ will return roughly 24%.

Good point breh.

ETF's havent been brought up yet in this thread. Well worth the discussion.

Bought SQQQ March 7th now. Sold today and now bought AGQ and TQQQ as I don't there is as much downside in the market as people think. Only problem with these ETFs is Aussies need to open up an international broker.

[JasperBedford]

DJ down 137 points
FTSE 100 down 80
DAX down 219

Going to be a bloodbath today. Not logging on to Commsec today lol...

lol, rebounding solidly at the moment. It's really hard to tell how each hour pans out, haha.

[MrB1g]

PEN up 30%.

Shame, was going to wait for one more day then jump in.


Oh well. I'll wait a few more days then pick up some quality stocks discounted.