Wazua
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Madness at the NSE
Rank: Elder Joined: 2/26/2012 Posts: 15,980
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You know things are getting interesting when there are only 3 stocks with gains. Who doesn't love this market? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: New-farer Joined: 9/24/2012 Posts: 63
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instinct wrote:the blood letting continues at the NSE.. when will it stop? I wish the Techies on this forum would tell us how long it will be before it stops...in the meantime we keep buying. Above all, guard your heart, for it is the wellspring of life.
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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arkard wrote:instinct wrote:the blood letting continues at the NSE.. when will it stop? I wish the Techies on this forum would tell us how long it will be before it stops...in the meantime we keep buying. tomorrow always belongs to God pple just predict "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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arkard wrote:instinct wrote:the blood letting continues at the NSE.. when will it stop? I wish the Techies on this forum would tell us how long it will be before it stops...in the meantime we keep buying. One can only estimate market tops and bottoms. The topping signs were there from Q3 2014. At the moment I don't foresee any bottom signs yet as long as we have CBK in the current mood of hiking rates. Then add on to that the global selloff and the cocktail gets very potent. When NSE20 exhibits excess fear at least then we can say the bottom is almost there. But since the start of the selloff people are still in the hope mood. Hope during selloffs means more pain is in the way. Extreme fear/pessimism is what marks bottoms.
The hope language is what I have highlighted. This market has a lot of this language floating around in the forum. We have acres to fall.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: New-farer Joined: 10/16/2014 Posts: 33
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Guys! Someone please explain this math Average Down:bought 1500 centum shares @63 bob = sh94,500 say the share goes down to 35 bob  , invest another 50,000 ~1400 shares TOTAL investment = 94,500+50,000 = sh 144,500 for 2900 shares Average price sh(94,500+50,000)/(1500+1400) shares = 49.48 bobIf the share was to rise to 60 bob, then investment value = sh60*2900 shares = sh174,000
Sell and buy later:Sell all 1500 shares at 50 bob 50*1500 = sh75,000 say the share goes down to 35 bob , invest all the money back and the additional 50,000 to the stock ~3500 shares (125000/35) TOTAL investment = 75,000+50,000 = sh 125,000 If the share was to rise to 60 bob, then investment value = sh60*3500 shares = sh210,000 Is this correct? How is it you make more money option 2 unlike averaging down??
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Rank: New-farer Joined: 1/15/2010 Posts: 81
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You do make more, but less than you think. You forgot the 'loss' between initial buying and selling prices (sh 19,500).
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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dpmungai wrote:Guys! Someone please explain this math Average Down:bought 1500 centum shares @63 bob = sh94,500 say the share goes down to 35 bob , invest another 50,000 ~1400 shares TOTAL investment = 94,500+50,000 = sh 144,500 for 2900 shares Average price sh(94,500+50,000)/(1500+1400) shares = 49.48 bobIf the share was to rise to 60 bob, then investment value = sh60*2900 shares = sh174,000
Sell and buy later:Sell all 1500 shares at 50 bob 50*1500 = sh75,000 say the share goes down to 35 bob , invest all the money back and the additional 50,000 to the stock ~3500 shares (125000/35) TOTAL investment = 75,000+50,000 = sh 125,000 If the share was to rise to 60 bob, then investment value = sh60*3500 shares = sh210,000 Is this correct? How is it you make more money option 2 unlike averaging down??  A very good question, moreso to value investors. I have a feeling someone will say, one can't predict the bottom. So just keep buying! 
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Rank: Member Joined: 1/3/2014 Posts: 257
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dpmungai wrote:Guys! Someone please explain this math Average Down:bought 1500 centum shares @63 bob = sh94,500 say the share goes down to 35 bob , invest another 50,000 ~1400 shares TOTAL investment = 94,500+50,000 = sh 144,500 for 2900 shares Average price sh(94,500+50,000)/(1500+1400) shares = 49.48 bobIf the share was to rise to 60 bob, then investment value = sh60*2900 shares = sh174,000
Sell and buy later:Sell all 1500 shares at 50 bob 50*1500 = sh75,000 say the share goes down to 35 bob , invest all the money back and the additional 50,000 to the stock ~3500 shares (125000/35) TOTAL investment = 75,000+50,000 = sh 125,000 If the share was to rise to 60 bob, then investment value = sh60*3500 shares = sh210,000 Is this correct? How is it you make more money option 2 unlike averaging down?? Your math is right. Based on the share prices used, sell and buy later with top up beats averaging down. The key is that your exit price (50) is higher than your re-entry price (35). I am very glad you are taking the time to figure out your situation. On my initial post I did not provide this scenario which was an oversight on my part. My apologies. I'm also sure you have deduced by now what it will take to make a profit if you use a hold-only (no additional funds) strategy.
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Rank: Elder Joined: 6/23/2009 Posts: 14,322 Location: nairobi
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chikonde wrote:You do make more, but less than you think. You forgot the 'loss' between initial buying and selling prices (sh 19,500). Apart from that, there is also significant commission on selling and buying back in, then selling again COOP, IMH, KEGN, KQ, MTNU
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Rank: Member Joined: 8/15/2015 Posts: 817
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arkard wrote:instinct wrote:the blood letting continues at the NSE.. when will it stop? I wish the Techies on this forum would tell us how long it will be before it stops...in the meantime we keep buying. draw your Fibonacci levels on the below chart and enjoy with peace of mind investing in the nse http://www.bloomberg.com/quote/EURUSD:CUR
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