Have i been shaking out of ITL?

Biggles

I did warn on your prev thread that a 10% stoploss was too tight, esp for a technology stock. They are back up to 111 again now. I still hold.

You might be wise to check your other holding (can't remem what it was) and see a) whether that stop is at a suitable level and b) whether your broker provides 'fill or kill' options for your stops, so that you aren't left with just a few shares.

adamt

cloud_dog wrote: »

A tad harsh........

adamt, Possibly you should have reviewed the charts a bit more before making the purchase. I know its always easy after the fact but...... If you look at the chart below......:

http://www.iii.co.uk/investment/detail?code=cotn:ITL.L&display=chart&it=le

You'll see that:

1. Historically ITL has returned to its 50 day SMA average during the recent trend
2. From the RSI its been over bought for a while (although shares can stay up in this area for a while it may not be the best place to make a purchase)
3. The MACD has just crossed down (negative), although there is still the possibility the MACD trend can bounce off the up trend (if you look at touch points 14th-21st Sept and 5th-12th Oct)
4. MACD histograme has also been in decline

You also need to factor in that generally the markets are having a bit of a breather / going south period.

Thanks for explaining.

However, i am not keen on following charts so strictly.

All they show is past trends, they dont predict the future.

But i do think they have their place in establishing support and Resistance areas.

thanks again

adamt

Biggles wrote: »

I did warn on your prev thread that a 10% stoploss was too tight, esp for a technology stock. They are back up to 111 again now. I still hold.

You might be wise to check your other holding (can't remem what it was) and see a) whether that stop is at a suitable level and b) whether your broker provides 'fill or kill' options for your stops, so that you aren't left with just a few shares.

i know i should have taken note, i actually remember you saying!
My other holding is DDT , bought at 74, now at 71.

I am thinking of putting the money that was stopped out back into ITL, i just need to leave a wider stop to prevent this happening again

What would you class as a suitable level?
I have thought 10-11% was sufficient but clearly not!
Do you base your stops just on resisitance levels?

Im not sure of the definitions of fill and kill but I did speak to my broker and he said that they sell as many as they possibly can when it hits a stop, but cannot gaurentee to sell all of them?

thsnks

cloud_dog

gozomark wrote: »

Its not me that's harsh - its the market. It tells you when you are wrong. Markets are no places for egos, and for worrying about being proven wrong.

It was a harsh comment. You are confusing the outcome of being stopped out, with an investment decison; which may prove correct. Short-term variations in the SP do not set the trend.

And, if you don't worry about being proved wrong what is the driver to learn and improve. Its all well and good being 'high and mighty' but it doesn't really contribute anything to the world, does it.

adamt

gozomark wrote: »

Its not me thats telling you are wrong - the market is. I'm merely pointing out the reality - don't shoot the messenger

has strong financials - old news
uptrend over the last 6 months from 45p - correct, but at what price is it no longer in an uptrend ? If this is a big part of why you bought it, thats where your stop loss should be
released very good statement - old news
bid rumours - is it fully discounted in the price ? What happens if no bid materialises ?

Ok fair points but as they are strong financials and indicate the company is moving upwards, what is the reason behind taking profits/price falling, besides a tree shake?

tradetime

But the annoying thing is that they only sold 939, so i still have 70 active shares, so i will have to pay the £10 commission when i sell this small amount!

I spoke to Interactive Invester - my broker, and they said its based on how much the other person wants to buy.
In this case they could only find buyer/s for 939 shares , so thats all they could sell.

That makes no sense, if you placed a stop loss your order should have filled unless it was a fill or kill, I will check, but I did not see any option for FOK orders on their site.

cloud_dog

adamt wrote: »

What would you class as a suitable level?
I have thought 10-11% was sufficient but clearly not!
Do you base your stops just on resisitance levels?

Thats a difficult one (each to their own).

The bottom line for me is what would you be willing to lose before feeling you need to get out. You need to remember you made an investment decision and that investment decision must have been based on something, if this is still true then you could hold - it is very difficult to get the timing absolutely spot on.

The only thing I would comment on is that AIM traded shares will need a bigger SL than a FTSE100 company. I have used a 40% SL on some AIM listed shares I have invested in but, I am comfortable with my investment and risk profile.

The other way to work is to accept that you will be unable to time your investment 100% and so where you are sold on an investment try phasing your investment, that way if you don't invest near the bottom or the SP goes lower you can make a second investment. I often work this way (as I am not stupid enough to think I know the market, I merely try to make educated assessments).

Edited: 'cause my tiping is attrocious :-(

tradetime

tradetime wrote: »

That makes no sense, if you placed a stop loss your order should have filled unless it was a fill or kill, I will check, but I did not see any option for FOK orders on their site.

Just checked, there are no Fill or Kill orders listed in their TradePlan, that order should have been executed in it's entirety,

adamt

tradetime wrote: »

Just checked, there are no Fill or Kill orders listed in their TradePlan, that order should have been executed in it's entirety,

Ok thanks for helping, so what are my options now?

shall i just call them and say they have to close my trade at no extra cost?

Biggles

Their FAQs say "TradePlan orders will almost always execute if the limit or trigger price is reached. However, they are not guaranteed. We may not be able to execute your order for a variety of reasons, including, the price of the stock moving very quickly, our RSPs suspending the stock or if the order quantity is too large for the RSPs to execute.", which would indicate to me that they should have sold the lot, even if they had got a lower price for the remainder (which would probably still have been higher than your SL point!). Let's face it, once the stock had hit its stoploss, why would they sell some shares and then stop selling?? What was their logic? ITL aren't particularly illiquid.

I think they screwed up and you probably ought to tell them.