Posts Tagged ‘RBS’

Royal bank of Scotland has bounced back 35% today and it is now stands on 21.3p after last Tuesday it was worth only 10.3. 100% in one week. Maybe it was a bit early to wave them goodbye.  Also the volume was 395.5m the leader od the day, 2.5 more than Vodafone on the second place with 136.97m volume.

Also impressive is my Barclays trade that gave me 104% profit when I sold it today for 98p. As soon that I hitted the sell button the share went all the way to 120! but I am still quite please with this trade.

What next? don’t know. I don’t have any opened position at the moment, and even my order book is empty. But not for long !

Today RBS lost 66.5% and went all the way down to 11.60p. At one point they even touched the 10p. After they reported earlier this morning that they are going to lose 28 billion pounds (All time record in Britain) the City lost all the confidence and sold out RBS.

The government has increased their stake in the bank to 70% and now it is just a mater of time before it will be full nationalised. I am really sad about it. I love the share and although I’ve made some heavy losses with them, I also made a lot of profit. So in total I think I earned more than I lost… It is one of the few share that I know inside out, but I didn’t expected them to go home.

Sad day for British banks.

Hi all,

Back in my of a fight back to London I read an article in one of the financial magazine that recommended to buying Barclays the price of the share back then was 338p. Today? 98p after black Friday for the famous British bank. In the last hour of trading the share lost 25%. Barclays is trading on 1993 level. And RBS? even worse 34.7p the bank that on 23/02/2007 was 704p.

In other words banks are trading for pennies. Do they have a chance? One can say that if RBS is just 34.7 it has no where to go down. But in my view it is matter of weeks or even day before the government will take full control and share price will be worth nothing.

Take a look at Citi. Not long ago a friend of mine told me that if the share price is below $10 I should buy. And I did. I bought it when the share was $9.38. On the same day it jumped to $9.90 and I didn’t take profit. Stupid me. It was Friday and I should take 5% profit on one day.

The next Monday the share went down and hit my stop loss at $8.6 on the same week the share went all the way to $4 before the US government  bailed them out. My friend that recommended me to buy did sell and found himself buying more when it was $6 and more when it was $5 and $4.

Yes the share did bounce back and he managed to make small profit but since then it seems that that the end is close for Citi. And Bank of America, and Lloyds TSB and even HSBC. No one safe. Going short is the obvious choice but apart of HSBC no much left to go down. So it is a huge risk.

I am staying put.

Have a nice weekend!

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.