Some time ago I came to the conclusion that mining stocks go up one day and down the next and seem to be very susceptible to sentiment! I expect it is because they are so volatile that they are very attractive for daytraders. This makes them even more volatile and so it is a vicious circle.
Plus with their obvious link to commodities, then the sentiment that drives the future markets translates to the stocks.
In an ideal world, I would be better at trying to figure out what makes these stocks tick....so that is my next task. Meanwhile, I tried to sell Xstrata, it's amazing how you can read all the books, tut at the examples of poor trading decisions and then go out and make one!
Wednesday, October 10, 2007
Tuesday, October 9, 2007
Spreadbetting or hedging
Well, for some time now I have been trying to get my head around investing, trading or spreadbetting.
I never realised there were so many different types of investor or trader and now I know there is a difference between trading and investing.
So, given that I have a mixed portfolio of shares and the market looks high, it seems time to short. This is where spreadbetting comes into its own....just need to figure out a "proper" strategy!
And do I want to hedge or just trade?
I never realised there were so many different types of investor or trader and now I know there is a difference between trading and investing.
So, given that I have a mixed portfolio of shares and the market looks high, it seems time to short. This is where spreadbetting comes into its own....just need to figure out a "proper" strategy!
And do I want to hedge or just trade?
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