Bank shares

[andyfuller]

BTW, when you trade Betfair, do you trade trends yourself (if you're trading a heavily trending market, for example)?

It will be one of many things I take into account, if I think the trend will continue I will jump on, or I may look for the reversal. I take as much as I can into account and react, you don't want to tie yourself down with a set of rules imo as you will miss out on a lot of profitable opportunities. You need to be willing and able to take advantage of every opportunity that is thrown up.

I used to trade by just a few things but slowly realised that you just miss out on so much profit. Learn to be able to work out what is important and what isn't and when.

I think you tie yourself down to much with your trend stuff when it comes to horse trading form what I have read. You need to learn to be more flexible and look at the overall picture.

Just my opinion of course and others far more successful than me may say differently

[Ferru123]

It will be one of many things I take into account, if I think the trend will continue I will jump on, or I may look for the reversal.

Whether you go with the trend or counter-trend, your long-term profit comes from the fact that you exploit market over-reactions, cutting your losses when trades aren't working out, and letting your profits run. So in that sense you're trend following. If markets were extremely efficient all the time, the only way you could profit would be by market making. It's hard to swing trade a random walk...

Jeff

[Ferru123]

Robert Peston has just tweeted:

Share prices of Barclays, Lloyds and Royal Bank of Scotland have more than halved from highs of past 12 months, more than £60bn wiped out

Jeff

[andyfuller]

A tweet by Lord Sugar (which Peter Jones from Dragons' Den agreed with):

Bank shares seem too low,I bought LLoyds RBS and Barclays Friday. Don't follow me I'm no expert.Take professional advise if u fancy a punt

Lord Sugar bought on 12/08/11:

LLoyds (LLOY) = 33.82p

Royal Bank of Scotland (RBS) = 26.49p

Barclays (BARC) = 187.20p


Currently:

LLOYS = 31.12p (-7.98%)

RBS = 23.67p (-10.65%)

BARC = 165.5p (-11.59%)

Indeed Lord Sugar you are no expert, note to self: Do the opposite of what Lord Sugar suggests

[Ferru123]

Lord Sugar, that performance was a bloody disgrace! You leave me no choice - You're fired!!!

Sorry, couldn't resist!

Jeff

Indeed Lord Sugar you are no expert

[andyfuller]

A tweet by Lord Sugar (which Peter Jones from Dragons' Den agreed with):

Bank shares seem too low,I bought LLoyds RBS and Barclays Friday. Don't follow me I'm no expert.Take professional advise if u fancy a punt

Lord Sugar bought on 12/08/11:

LLoyds (LLOY) = 33.82p

Royal Bank of Scotland (RBS) = 26.49p

Barclays (BARC) = 187.20p

At Close 18/08/2011:

LLOYS = 29.81p (-11.86%)

RBS = 21.95p (-17.14%)

BARC = 154.00p (-17.74%)

There is a lot to be said for sticking to what you know and leaving other things well alone.

[staker72]

Guessing Lord Sugar is looking a little longer term. Obviosly with hindsight could have bought better but isn't that the same when trading on betfair. If you make money great. Time to tell will be in a year or so's time.

[andyfuller]

Yeah sure he is looking long term, several years no doubt, but still it seems an odd time to have been buying them to me. The downside at the moment is huge it seems to me with so much up in the air so as I said early I would have held out for a while yet before buying.

[Ferru123]

Reading between the lines, I get the impression it was more of a punt than a careful investment decision!

And if I were a fundamental trader, and felt that a equity had value, I'd leave it be if it were falling in price, and only jump in when the trend appeared to be reversing...

Jeff

[andyfuller]

I guess he should be adding to his position at the moment if he thought they were value before, they are even better value now unless he has changed his thinking behind what made them value before.