21 Oct Our Wannabe iTrader finds his groove
Another week of trading and after the big downturn in the JSE the week before, it was time to find some perhaps undervalued shares and go long, hoping that the market wouldn’t continue its negative trend. This week of online trading has been better thus far, with the three shares I have at the moment all moving in the right direction.
I picked up some shares in Mediclinic (MDC) and the Satrix top 40 (STX40) portfolio, which have since seen a bit of growth. I bought MDC for R89.05 per share and at the moment it is trading at close to R91.30, sitting nicely at the moment. I bought STX40 at R42.11 which is now at R43.20. I have also been holding on to the old mutual shares I bought the week before.
The problem I might begin to face now is when to close a profitable position. I’ll probably keep adjusting my contingent orders (stop loss) as the share grows, and be taken out of the position when the share price turns. This strategy will hopefully allow me to ride a profitable wave, and get out when a share becomes overvalued. This of course depends largely on picking effective stop loss prices.
If the market moves back up to where it was before the big downturn, then this week should be a solid week for traders…
– Bradley Lund