NZS (ASX) Ann: Trading Halt

Originally posted by Rawk: ↑

Zaco, get some trading rules and be disciplined. All that glitters is not gold. The market is essentially a transfer of money to those who know the most from those that know the least. Casino's pay out but the odds always favour the house. Your question raises a few questions which are good to consider. Are you trading this or going long on the fundamentals. If fundamentals I start by jumping on msn money for a quick snapshot of the company. This provides, share issue, market cap, financials, link to website etc. I use it as a pre filter to get a feel before proceeding. If it passes the initial snapshot I read every asx announcement to get my head in the game. I always research board pedigree as I have experienced great assets be nothing more than a capital raising vacuum with directors having no intention of adding value to shareholders. The market has its share of corrupt career directors playing games with honest albeit foolish peoples money. I speak from experience. If a company has an in ground resource or good assets I simply look at a chart to see if the market has ever valued them. If not the management need to be scrutinized. While starting out check in on respected posters and the way they value companies but always merge it with your conviction. Develop your set of rules. Only invest what you can afford to lose, think about allocation say no more than 10% of 1 stock in your portfolio, research sector strength, eg I believe oil n gas is oversold and assets could be at lows. I am short listing gas plays as I believe they will recover well 21/22, but not the best use of capital right now as Gold/silver is the hotspot but could be due a breather so not giving advice. Nutraceuticals have good growth forecasts so I'm here for that and the story. Now if trading I can't do it without charting so do an online course and get savvy. I have made some good buys at the gap and sold at fib extensions, old resistence, etc but eveyone is looking at the same stuff so goodness knows what the holy grail is there. Another huge aspect is the idea of cutting your losses and letting the winners run. I'm still learning but if you develop good rules then celebrate taking a profit even if you leave money on the table. As for NZS Monday trade who knows as this is a new company and not alot of price history so check out some of the peer comparisons to get a handle on acceptable market cap. It will depend on the news but likely a gap open and some will be selling into your purchase to fulfill the rule buy the rumour sell the news. Lastly and said with great care for any newby, make sure that anything you read here is just another idea to consider with your own conviction. If you don't have one get one. Disclosure. I am long and holding and Monday will add to that conviction or not. Get knowledge and minimize luck.

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Thanks a lot for the lengthy response mate I appreciate you taking the time. I am more inclined to research fundamentals and trade only a few stocks that I truly believe in and after doing research on NZS I am confident to go long and hold. Thanks again mate.