meo 2jul chart - what is needed ?, page-10

Lachlanross,

A very good question... it's a fundamental question I have had to ask myself many times and we all should. Recently when I sold out of all my positions I had to take losses on some shares and obviously try and get the most out of the situation. I'm glad I did now in every single share I sold. Timing is extremely hard of course... I would not prentend to have the right answer. But here's a crack at some advice.

My thoughts are these...

1. Learn some basics in regards to reading charts so you can see where trends are going. Even without understanding technical indicators and patterns, just seeing a visual representation can help you make the right decision.

2. Try and ascertain a support level - which seems to be 24.5 or 25 atm imo. If it breaks below this then perhaps sell a percentage as these are levels looked at by traders and have impact to sentiment. Usually a support once broken will then retest that support from underneath. i.e if it dropped below 24.5, then it would test that level again for a moment. Another opportunity to get a bit more, which is due to my next point.

2. Sell into strength - News like the mining tax reform (which gave us a bounce) or anything for that matter is an opportunity to sell. I can't tell you the millions of times I've seen shares spike on News and then fall back to previous levels.

3. Don't sell everything in one go. Brokerage is most likely a small percent of the potential wins or losses, so being shy of paying brokerage will send you broke imo. Selling in phases makes you less likely to make one big mistake.

4. Market depth is not an indicator of strength or weakness. I personally believe desperate holders stack the market depth to TRY and show support. Market depth can sometimes help identify support levels and show potential liquidity or lack there of.

5. Look at world markets for guidance and these do move all share prices. My thoughts here are grim. The Head and shoulders patterns playing out everywhere in indexes and commodities suggests further weakness. However, we are now on the far right neckline and without getting too technical this fundamental support will probably be played with by the markets for a little while before a big move. So what does that mean... the US market may move sideways for a few days at best imo. I have a few websites that I read for opinion which are mainly technical analysis... This is where i get my overall trading plan from.

I bought a few MEO the other week and lost half a cent. But that is now a good decision in hindsight as I can buy back today at roughly 8% cheaper.

The market is design to fool most of the people most of the time... and we are those people.

Good luck !