13 Oct ‘Shoulda, woulda, coulda’ – Our Wannabe iTrader learns some solid lessons this week
This last week has been quite interesting! The market is a fickle beast, trying to coax it into playing nice is quite a mission. The Top40 index has fallen around 3000 points in the last three weeks, not cool!
I was standing on short shares in the Satrix Resi portfolio. I had been holding these shares for a while and didn’t know quite what to do with them. There hadn’t been much movement, just a slight move in the wrong direction, and the share price then hovering around this mark. On Thursday, all of the shares that are in the Satrix Resi portfolio were on the up, so thinking that the STXRES share price would follow, I decided to cut my losses and close that position.
I also bought some shares in Old Mutual, hoping that they were in oversold territory and would be bouncing back up shortly. So what happened on Friday in the markets was quite painful to watch. Before the opening of the markets I had scouted shares and done some analysis and was prepared to buy. I had small looks at a couple of companies, one of which was Cargo Carriers Ltd (CRG). After five minutes of the market opening, I think all of the top 40 shares were in the red. It would turn out to stay that way, whilst CRG grew 70 %!
A lot of ‘what could have been’ situations arise when trading. This can be frustrating, but is out of my hands really. I think some important lessons have been learned. I need to be more disciplined, know that my stop loss orders are there for a reason and focus on technical analysis.
Putting all this together hopefully things will come right! Ready for another week of trading…
– Bradley Lund