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Friday, March 4, 2011

Chinese Rare Earths are looking very attractive. Bullish consolidation into support. The risk-reward here is extremely high.

Disclaimer: As of today I do own shares of XING.

XING:


CHGS:
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2 comments:

  1. UnknownMarch 4, 2011 at 10:28 AM

    what stop loss did you use and if it goes lower do you still keep buying. i dont know much about this stock at this writing. you have CHGS as well. they must be connected.

    market down again on some lame ass reason...oh yea, its oil. big surprise.

    ReplyDelete
  2. yourfinancialbloggerMarch 4, 2011 at 11:47 AM

    Generally, I don't use stop losses. Only because a number of things can happen:

    1) When long: the stock can sell off the entire day only to recover at the end forming a bottoming tail. Which would signal a reversal.

    2) You can't call tops/bottoms.

    When I take positions is on a number of things I see:

    1) the chart of the stock itself

    2) macro news that will effect the stock

    3) other stocks within the same industry.

    I only sale when the market tells me to and not because my portfolio is losing money and my guts are yelling to "Get out!"

    Marc Faber said something like, "if you can't suffer 30% in losses you shouldn't be in this business."

    *cheers

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