Northern Rock - Example of Panic Selling?

[Hoggums]

Rumours abound on ET that trading in NR has been suspended after plummeting to 61p.

 

[Jack o'Clubs]

Rumours abound on ET that trading in NR has been suspended after plummeting to 61p.

It was first thing. It's now trading 79p/81p bid/offer plenty of volume both sides.

 

[lurkerlurker]

Covered

Somebody posted a critical comment earlier, which now appears to have been deleted. I was in a hurry, so I couldn't respond at the time, and now I'm not too sure who it was...

Anyway, I'm out. The drop to 60 was unexpected. While I wasn't prepared to be panicked out of my position and cover at the bottom, the fact that the stock went that low, even briefly, coupled with the lack of headway made so far, makes the reasons for my entry invalid.

I decided to take profit around resistance, and got a price of 92 to close.

Interestingly there is an hourly pin bar off the lows, but I'm leaving well alone. I'll confess to getting slightly panicked earlier. Even though I had no stop and was using no leverage, I didn't expect a 30% drop within minutes of putting on a position. I kept my head, and covered at an appropriate point, but I feel it would be wrong to hold this.

Not a terribly good trade, and does nothing for my credibility, discipline, etc.

 

[chump]

it was me and I knew you'd jump out if price came back to something like breakeven. it's all part of what makes markets do what they do.what you're doing is bog standard amongst people who really don't have a grasp of risk,uncertainty and probability...do yourself a favour and get into the grey 1 group on here and see if he'll give you a serious indepth discussion. Sorry ,but I'm not up for it as i am trying to concentrate on trading rather than discussing it. I wasn't being critical ,I was being factual in the hope you might get the help you need before you launch anymore trades like this.

 

[lurkerlurker]

it was me and I knew you'd jump out if price came back to something like breakeven.

Thanks chump - given my reasons for entering the trade, it would have been silly to hold after it fell to 60. At least I didn't panic and cover at the bottom though - that wasn't the plan - the stop was zero.

it's all part of what makes markets do what they do.what you're doing is bog standard amongst people who really don't have a grasp of risk,uncertainty and probability...do yourself a favour and get into the grey 1 group on here and see if he'll give you a serious indepth discussion.

I've been a member of that board for awhile but I've not been in there much. I'll give it a go. Thanks for the advice.

Sorry ,but I'm not up for it as i am trying to concentrate on trading rather than discussing it. I wasn't being critical ,I was being factual in the hope you might get the help you need before you launch anymore trades like this.

The trade did give me a little bit of a panic when it dropped 30% a few minutes after I went long. I'm not in a hurry to repeat that. I'm just glad I managed it well enough to get out without getting burned. A year ago I would have covered 60 regardless of where I had previously decided I was "wrong", or any mental or hard stop below 60.

Thanks for the advice - and it is fair enough to concentrate on trading rather than discussing it.

 

[Atilla]

Excellent article on the banking crises facing us all... and some parallel's with the Asian crises of 97...

Do as I say not as I do comes to mind...



Financial Hypocrisy


Enjoy...

 

[lurkerlurker]

I decided to take profit around resistance, and got a price of 92 to close.

Great. The very event I was expecting transpired without me having my position on. I'll lament the potential gain of 20 odd pips some other time. The trade was bad, and I'm pleased to have got out of it.