Archive for January 12th, 2009

At the moment the price for Oil light crude (Feb) is $37.8 if it touches the 35.5 I am in! Buying of course…

For years I have love-hate relationship with RBS. I had some good profit in the past and I have lost lots of money in October. Because I was watching the share for long time I thought I knew it quite well.

Take a look at the chart

On the 11/09 I’ve sold it for 230 and bought it again on 16/11 for 180 this was nice profit of 50 points (21%) than on the 18/09 afternoon I bought it for 162 and sold it the day after when it peaked in the morning for 252. 55% points in less than a day. Not bad… but then I made my mistake.
On the 25/09 I bought it for 210. And a quick look at the chart and you can see where it goes. To make things worse I have bought more on the 29/09 at 187. I didn’t have stop loss and it went down more. But I was confident it will bounce back because I knew the share quite well. Well it didn’t… I sold it on 79 a massive 65% lost! It hearts…
But I learnt some good lessons:
1) Don’t think you know the share. There are many elements you just don’t know.
2) Use stop loss.
3) Don’t try to buy lower to average your position. It can make things worse.
On the good side I managed to buy RBS again on 49.45 and sold them at 62 which made me 20% profit. I was tempted to buy it again when it touched 43, but I was scared that the Government will take them. Since then they recover a bit to 53.