Fishman Posted February 16, 2009 Share Posted February 16, 2009 My inability to control my desire to buy cheap shares got the better of me today.I have bought some Lloyds shares at 52p, only £2k worth. They had fallen to 48p, but I wasn't able to get them at that price. Now I did this last time and doubled my money, so my current £2k is only profit and there does seem to be a feeling that the loss report by HBOS is the result of very cautious valuation used by Lloyds. So what do you reckon? I am I mad or was it a good bet. Not wishing to appear rude, but are you investing or gambling ? You see, this has been the problem with the financial sector over the last decade. Everyone's in a hurry to make that killing on the market - it's this 'get rich quick' mentality that we need to extinguish so we can return to a stable long term investment environment. I know it's boring but that's how it has to be from now on. I'm not holding my breath, though Quote Link to comment Share on other sites More sharing options...
Nestegger Posted February 16, 2009 Share Posted February 16, 2009 You are asking fellow human beings not to be greedy, that's like me asking my dog not to eat dog food. Quote Link to comment Share on other sites More sharing options...
The Pale Rider Posted February 16, 2009 Share Posted February 16, 2009 Not wishing to appear rude, but are you investing or gambling ?You see, this has been the problem with the financial sector over the last decade. Everyone's in a hurry to make that killing on the market - it's this 'get rich quick' mentality that we need to extinguish so we can return to a stable long term investment environment. I know it's boring but that's how it has to be from now on. I'm not holding my breath, though Anyone who is in for the long term gets reamed by the hedge funds shorting! They have already ruined my pension fund. Think I will just invest in tins of beans and bags of rice for the coming meltdown. Quote Link to comment Share on other sites More sharing options...
grey shark Posted February 16, 2009 Share Posted February 16, 2009 Not wishing to appear rude, but are you investing or gambling ? He's 'trading the range' imo . Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted February 16, 2009 Share Posted February 16, 2009 Why, did you short them? Or 'sell' them on one of the SB platforms? bought in for a laugh. now got it covered by stop losses. so im profit already. bad news over, the focus will be on RBS this week. so a calculated punt. im clear of my stop loss and keep increasing it now as the price slowly climbs. Quote Link to comment Share on other sites More sharing options...
R K Posted February 16, 2009 Share Posted February 16, 2009 20% or even 50% upside with 100% downside is a very bad bet. Just think about the maths of it. RBS settled at a similar price around 44p before they plunged to 10p and are still only 20p. Folly. Quote Link to comment Share on other sites More sharing options...
Shamrock Posted February 16, 2009 Share Posted February 16, 2009 Lloyds Banking Group 63.00 1.60 2.61 Quote Link to comment Share on other sites More sharing options...
porca misèria Posted February 16, 2009 Share Posted February 16, 2009 Lloyds Banking Group 63.00 1.60 2.61 I'm holding the shares I bought at 53p. Of course I could make a loss, but I like the upside. Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted February 16, 2009 Author Share Posted February 16, 2009 Lloyds Banking Group 63.00 1.60 2.61 I may have sold a bit early, but a bird in the hand so to speak. Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted February 16, 2009 Share Posted February 16, 2009 I may have sold a bit early, but a bird in the hand so to speak. why didnt you follow up your gains with a stop loss as it rose ? rather than quit. Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted February 16, 2009 Share Posted February 16, 2009 20% or even 50% upside with 100% downside is a very bad bet.Just think about the maths of it. RBS settled at a similar price around 44p before they plunged to 10p and are still only 20p. Folly. IMHO it's a punt no different from the 'Hedgies' that bought into Northern Rock whilst in its death throes. I happen to think full nationalisation is not on the cards and the shares will be allowed to rise/fall exist, but buying on exepcted price rises alone, without any prospect of a dividend is not for me. Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted February 16, 2009 Author Share Posted February 16, 2009 why didnt you follow up your gains with a stop loss as it rose ?rather than quit. In my personal experience I tend to lose money when I start playing with stop losses. One minute, I'm advancing them to hold onto gain, the next minute I am lowering them because I don't want to close the trade on a loss. I did manage to blow nearly £4k on the rock, those as I said before, it only cost £2000 as I was able to offset it against a £30k capital gain I made that year. Quote Link to comment Share on other sites More sharing options...
crispindry Posted February 16, 2009 Share Posted February 16, 2009 ....the next minute I am lowering them because I don't want to close the trade on a loss. Hmmm. Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted February 16, 2009 Share Posted February 16, 2009 In my personal experience I tend to lose money when I start playing with stop losses. One minute, I'm advancing them to hold onto gain, the next minute I am lowering them because I don't want to close the trade on a loss.I did manage to blow nearly £4k on the rock, those as I said before, it only cost £2000 as I was able to offset it against a £30k capital gain I made that year. no. if you bought at 52p, let it rise to when you were going to cash in at 62p, but instead of cashing in set a stop loss at 60p gives you that little extra insurance. you may have missed out on 2p per share earning, but if this stock recovers to 95p you will be kicking yourself. after all. the lloyds bads news is over and nothing to the RBS news supposed to be coming out mid week. Quote Link to comment Share on other sites More sharing options...
R K Posted February 16, 2009 Share Posted February 16, 2009 no. if you bought at 52p, let it rise to when you were going to cash in at 62p, but instead of cashing in set a stop loss at 60pgives you that little extra insurance. you may have missed out on 2p per share earning, but if this stock recovers to 95p you will be kicking yourself. after all. the lloyds bads news is over and nothing to the RBS news supposed to be coming out mid week. A stop loss 3% from the price when the volatility was 30% last trading session simply doesn't make any sense at all. Neither does buying at 52p to hope for a profit at 62p. The only possible trade on any of these banks right now is a long-term value trade. Anything else is bonkers. The most bonkers being intra-day position trades. Quote Link to comment Share on other sites More sharing options...
CharlieChuck Posted February 16, 2009 Share Posted February 16, 2009 IMHO it's a punt no different from the 'Hedgies' that bought into Northern Rock whilst in its death throes. I happen to think full nationalisation is not on the cards and the shares will be allowed to rise/fall exist, but buying on exepcted price rises alone, without any prospect of a dividend is not for me. It's similar to RBS in that the govt doesn't want to fully nationalise it, they want to keep it private, the share price fluctuating doesn't really mean much anymore - unless it leads to wider panic and a bank run. I'd expect a further bail out which will dilute shareholders even more. I also had a little punt on friday, but it was a little punt, £100 (down about £3 plus dealing charges so far) Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted February 16, 2009 Share Posted February 16, 2009 A stop loss 3% from the price when the volatility was 30% last trading session simply doesn't make any sense at all. Neither does buying at 52p to hope for a profit at 62p. The only possible trade on any of these banks right now is a long-term value trade. Anything else is bonkers. The most bonkers being intra-day position trades. but the OP made a few hundred and so have i on a few occoassions. nip in, snatch a quick profit. leave. Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted February 16, 2009 Share Posted February 16, 2009 to add. my stop loss just sold, and i made £200. there. Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted February 16, 2009 Author Share Posted February 16, 2009 to add. my stop loss just sold, and i made £200.there. Yes, its dragging back down to below 60p. If I'd done it your way I admit I would have been £400 quid up. Quote Link to comment Share on other sites More sharing options...
D.C. Posted February 16, 2009 Share Posted February 16, 2009 You are asking fellow human beings not to be greedy, that's like me asking my dog not to eat dog food. More like asking your dog not to savage your children tbh. Quote Link to comment Share on other sites More sharing options...
the-sign-jacker Posted February 16, 2009 Share Posted February 16, 2009 Yes, its dragging back down to below 60p. If I'd done it your way I admit I would have been £400 quid up. more like plunging !! Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted February 16, 2009 Author Share Posted February 16, 2009 more like plunging !! Apparently Moodys incorrectly published something saying Lloyd's had already been nationalised. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted February 16, 2009 Share Posted February 16, 2009 Who is the cheapest execution only Broker? I remember a few years back Hoodless Brennan did a 30 days of free trades promotion. anything similar around now? Quote Link to comment Share on other sites More sharing options...
R K Posted February 16, 2009 Share Posted February 16, 2009 but the OP made a few hundred and so have i on a few occoassions.nip in, snatch a quick profit. leave. Of course. What does that have to do with anything? It's slow profits you want, and quick losses. It's the same strategy FTB used to buy RBS at 44p isn't it? Quote Link to comment Share on other sites More sharing options...
Sonic the Hedge Fund Posted February 16, 2009 Share Posted February 16, 2009 the lloyds bads news is over No, this is just the start. Next comes the hatchet job on HBOS, politically very sensitive due to the concentration of operations in Labour Heartlands How convenient that the loses were 'much larger than expected' sparking rumours of government takeover, putting the government on the back foot. Now LBG are free to cull 2/3 of HBOS workforce 'in the interests of the taxpayer' Quote Link to comment Share on other sites More sharing options...
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