Junior Oil Companies. ASX

[anroo]

Wouldn't you say that any investment that can potentially lose 1-2-10-20-99% would be classified as a gamble and therefore anyone investing in the ASX would be considered a gambler?

[wren]

I guess it depends on a definition of gambling .If a loss is limited to 1 or 2% of capital (per trade),a run of losses will not wipe out ones capital.Even 10 losses in a row would not be a disaster.Contrast this with buying XYZ ,ABC etc and losing 50% with each trade?To recover the capital is almost impossible.So,let's say we have capital of $100,000.I decide the BHP has everything going for it,so buy $100,000 worth.The trade goes pear shaped and I bail out with a $2,000 loss.Now have $98,000.have another go,and pear shaped again.Loss of about $1,900,so now have $96,900 to play with....and so it goes.Let's play it the other way.A friend says NCM can go nowhere but up.My $100,000 is invested,but after a month or two my investment is worth $50,000.Sure you can tell yourself that you haven't lost because you have not sold,but I do not buy this view.Try using your NCM as collateral for a loan:a lender will tell you he values the holding at $50,000 with no discussion being entered into.Just my thoughts.....others will see it differently.

[flower]

Wouldn't you say that any investment that can potentially lose 1-2-10-20-99% would be classified as a gamble and therefore anyone investing in the ASX would be considered a gambler?

 

Hi anroo, be careful!!!

 

The contents of Wren's post completely misread things IMO.

 

Most people who join such forums are serious about the stock market, that does not necessarily mean they are or have to be serious about trading, as trading is not the only way to make money out of the stock market and probably not the most profitable.

 

As for investing "small quantities of capital" and all that implies, again belies what truly successful people are about. They do not brag about how much they plonk on a trade.

 

The stock market may be a giant casino for some, in reality it is still even today the medium where ideas are nurtured into business plans before being financed via the stock market, that is where the real money is made, and those who are successful about that element of the market keep very privately quiet.

 

Some ideas/plans/investments/trades you win, some you lose, as long as the winners in your stock market investing lifetime way exceed the losers all is well.

[flower]

As a direct result of a purely symbolic reduction in QE of a meaningless USD10billion all markets except the PM's went shooting up, as Ben Bernanke passes the poisoned chalice to Janet Yellen, what are we to make of it all?

 

Am very glad I had that visit to the optometrist recently who, incidentally, said that no, I did not need new glasses, observed WTI and TAPIS rising overnight, settling down today at a .6% rise.

 

That rise in Crude prices has lifted many ASX oilers today in a very thin market:

NXS,FZR,ROC,LNG,HZN,SEH,OSH,STO,BRU,PCL,CVN,KAR,WPL,AWE,BPP,NEN,AUT, MAD.

 

It will be interesting to see as Yellen assumes chairmanship of the FED whether she will continue minimal QE, and if last nights reaction is anything to go by--are we going to see a full blooded market rally with oil being commodity flavour of the month early 2014?

[mullokintyre]

Most people who join such forums are serious about the stock market, that does not necessarily mean they are or have to be serious about trading, as trading is not the only way to make money out of the stock market and probably not the most profitable.

Flower, do you have any research data on the above statements to back them up?

Otherwise I am afraid its just another opinion, and as such worth as much as all the previous ones.

The fact that you cannot make money trading does not preclude others from doing so.

 

Mick

[flower]

IMHO all ASX oil producers should be closely watched as the enclosed chart of WTI crude oil is showing very early signs of waking up from it's six month sell off, whether this is connected to what the market perceives Janet Yelllen will say tonight is unkown--Lets see what happens--watch those ASX oilers for the next few days--some of them seem to be ahead of the oil market in much the same way as some ASX gold stocks pre-run the metal.

 

AUD very strong using a weekly chart--enclosed