09 Jul ‘Meeting the Hoff’ – our Wannabe iTrader’s first trading day
Pieter Kriel, our Wannabe iTrader reflects on his first day of trading:
With not much happening on the local and international news front this week, I expected a quiet day on the JSE with lots of directionless movement. Only major Top 40 movement for the day came in the form of African Bank (JSE:ABL), whose price soared a massive 17% due to their Ellerines sale rumours.
I picked Steinhoff (JSE:SHF), co-incidentally also a possible buyer of Ellerines, for my first trade, still “recovering” from the recent 8% rights issue price drop last week. I entered at R55.60 with a target price of R57.54 and a stop-loss at R53.00. At the end of the day the price hovered slightly lower and I decided to keep it till Tuesday.
Steinhoff jumped quite nicely on Tuesday morning, reaching a high of R55.95. However, with the Ellerines rumours possibly having a negative effect on Steinhoff, and the price not looking to break through the R56 mark, I decided to rather cash out and close my position at a price of R55.81, up slightly from my purchase price of R55.60. Although locking in a slight net loss due to trading fees, it was the right decision, with the price spiralling down towards R55 since.
For my second trade I purchased Impala Platinum (JSE:IMP) with the hope that news of a wage settlement yesterday afternoon will have a positive effect on the share price. I entered at R111.30 and set myself a target of R114.00. The price did touch an intraday high of R112.10, but has since come down and is looking to close slightly above R111.00 – again quite a narrow day for a usually volatile performer.