Magnum power, stay or go?

Rogue

Junior member
10 0
MGP seems to be taking a downturn, and are getting too close for comfort to my stop loss. Results are out on Friday (23rd) Should I stay or should I go...? Any imput would be appreciated. Been looking at ADVFN and sells are up over the buys, but it's close. Other BB's express the opinion that this is the mm playing games before the bounce prior to results.
 

Cigar

Well-known member
292 13
On the +ve side, the trend is showing higher highs etc. The present retracement is still (just) above the last peak in the trend.
On the -ve side, several indicator trends have broken to the downside. Also volume has been diminishing since the start of the trend. MM's can't alter the volume figures.

Depends how long you want to hold the co., are the fundi's good etc

In todays climate, I'm happy to sell at a profit. Results make me nervous, I'd rather sell with a profit than risk being caught. You can always buy back in.

Sorry, no black and white answer.
 

ChartMan

Legendary member
5,580 46
I make it closed below rising trend line and other indicators show broken up trend too. Cigar's advice is valid- in todays market, if you're in profit, or close to stop loss, results could be damaging, even if reasonable......
The final choice has to be yours.

[Edited by ChartMan on 19-02-2001 at 03:26 PM]
 

Rogue

Junior member
10 0
Cigar and Chartman

Thanks chaps. I've passed (but not by far) my stop loss. Market has now closed for today. I'll sleep on it and then decide to stay or go. Hoping for a small open price in the morning if I do bottle it.
 

cookie

Active member
248 1
Welcome!!

Rogue, for what its worth I make a point of NEVER holding a stock at the time of Results. Invariably any good news is already priced in with profit taking to follow.

However MGP appears to have made a consistent pre-tax loss for the last 5 years although revenues have increased significantly and there is of course always a chance that sooner or later they will move into profit.

If I were sweet on the fundies of this company I would probably hold in anticipation of a profit to resurrect investor confidence , however you know the rules:- Stick rigidly to your Stop Loss. If posting a profit then there is every chance the price will begin to head north :- Confirm the trend, join the trend and you are likely to recover ( minimised ) losses. If posting another loss should confirm the stop loss strategy.


Its a funny old game and the decision must be yours.



Good Luck




Cookie
 

Rogue

Junior member
10 0
Cookie

Thanks for the advise. I am fairly sure I messed up on this one. I'm totally new to this (this is the the 3rd share I've ever bought). Bit embarrassed to let on at what I bought mgp at, but guess I'll put this one down to experience (or lack of it). Thanks
 

Uncle

Established member
671 2
Rogue....You may have a red face on this one, but be assured we have all done the same thing - and still do from time to time. There is no better teacher than losing your money. The secret is make sure you dont get wiped out first. At the risk of boring long standing members, I will repeat, Money Management is the secret of making money on the Markets. In other words minimise your losses by applying strict STOP LOSSES, and if they are broken get the hell out of there. For example, I took a punt on Spirent yesterday at 450, went out for an hour and saw they had gone from plus to minus 15 so got out pronto. They finished the day -17. Today they are down another 11 at the time of writing this. So I trust I make the point with this real life example.

So remember, CUT LOSSES, CUT LOSSES, CUT LOSSES.

Best wishes

John
 

Rogue

Junior member
10 0
Uncle John

What a day, I tried to get out og MGP yesterday afternoon, but connectFree (my ISP) was having a few problems (they are are usually very good so could have been an omen...) Anyway, thanks for the input, I got out today at 4:28pm (just before lse closed). I watched the price not move an inch during the day, and then sold. I decided to cut losses, it was more than I could afford to loose. This would have been gamble, affecting my capital to use for future trading. Even if the results were good, as you say, that dosn't mean the price will rise (look at ARM as a clasic example of that). I can afford to loose 10 -15% but not the lot.

Thanks once again
 

cookie

Active member
248 1
Well done Rogue your actions were spot on - STOP LOSS!!!

Posting yet another loss today - price loses 30% in early trading.

You will get the best possible unbiased advice here. Beware other BB's which are full of rampers and de-rampers.

Good Luck



Cookie
 

Rogue

Junior member
10 0
Yeeeee Haaa

THANK YOU THANK YOU THANK YOU

Your advise certainly paid off. The other BB's also seem to have a lot of point scorers on them to.

Onward and upward my friends, once I decide what to get into next that is. I think oil stocks this time, I'm a little shy of TMT's at the moment.

Thanks once again, for teaching me the ways of righteousness.

PS: how do you add those cool animations? If I knew how, I'd have one toasting a drink to you all.
 

ChartMan

Legendary member
5,580 46
You're more than welcome mate.Just remember we don't all get it right all of the time, BUT always err on the side of pesimism,and your capital will be fairly safe.
NEVER invest in HOPE- it's worse than a woman scorned.....
 

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