Forum Archive Index - April 2002

["andrew cottingham" <arco@adinfinitum.co.nz>]

Good Morning Nua

 

Yes I would agree, it is perhaps important to realise there is a  difference between long term investors and short term traders. (Although I am both). Certainly at the moment SOH could become a short term trading opportunity with a potential  gain of +/-15% if the scenario in the previous messages come to fruition. It may of course also become a longer term investment, but needs daily monitoring which does not always suit long term investors who only check their investments occasionally. 

Potential purchasers may be interested to know the following facts. - Yesterdays volume was 5.65 million. The 500 day average is 793,000. The 3 year average is 417,193.  If making a purchase I would suggest an initial stop-loss point would be on a close below 65c, as this has formed the support since early Feb.

 

Russ - you have to decide the type of trader you are.

 

Andrew

----- Original Message -----

From: Mr Nua

To: sharechat@sharechat.co.nz

Sent: Friday, April 19, 2002 10:22 AM

Subject: Re: [sharechat] Solution 6

Hi Andrew,

 

I agree with your view that SOH has profit potential between the current price action and the long term downtrend, but only for the short term traders. I enjoy reading your post and other traders.

 

When asked "would it be wise to follow...what is the chart telling us" I think that it is important to point out that the share is still in an overall nasty down trend. As short term traders you will have a plan that will get you out of SOH quickly, should it not pull out of the downtrend. Many investors (and I don't mean fundamental investors here - I just mean people who put money into shares) will not have that plan.

 

If someone with no trading experience asked if they should enter SOH because Brierly and Packer went in, I would still suggest that they steer clear of this one until it changes it spots (or fleas) i.e. the Primary trend changes.

 

This share reminds me too much of Davnet (below), which kept threatening to break out of the primary trend (after all sorts of announcements, rumors and investments) but never did. These are the types of shares that beginners can lose their shirts on (Brierly and Packer have many shirts).

 

If you have little experience in trading or investing, you are best starting with shares that are overall heading in an upwards direction. Downwards trending shares require much finer timing and are generally less forgiving if you get that timing wrong.

 

Nua  

 

 

Davnet - "Yucky".