About Me

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I am a young invester/Trader, i mostly focus on Short term or Intra day trading on the equities or Forex markets. I have recently completed my Bachelor of Commerce double major in Finance and Property. I have also completed my RG146 in securities and Financial planning and while trading is a passion my desire is to work within the stockbroking industry or as a trader for an investment bank. This blog I have set up to help share ideas to others on trades and tips i have picked up from my time in the market. I hope you enjoy my blog and some of my ideas :)

Twitter / scilliams

This blog i have designed for a bit of fun, education and sharing of my thoughts in regards to trading the ASX or general equities trading and also FOREX trading. I am no expert and nothing on this blog should be taken as financial advice, it is merely just a tool for myself to share any trading thoughts i have and for people to enjoy reading :)

Saturday, June 26, 2010

Parabolic rise 101

Hey everyone,


During the week i had a friend ask me about AUT, i have no idea about the stock so i opened up the chart and i was blown away to say the least. I then said are you in? he said no i want to get in... then i went mmmmmmmmmmmm

I trust charts and they are what i use, If people love the fundamentals happy days and you can stick with the stock but all i can say is if the price comes down you should be happy as you can now buy more? fundamentals still there?

Markets are driven by buying and selling and more often than not emotions can really play a big part in this process.

Anyway some things i know is that generally a parabolic rise in a stock only ends in tears and i can give you countless examples of this but one stock sticks out to me and that is ARM as it is similar price and i remember everyone raving on about how good this thing was near the start of the year and yes it did go to $1 and AUT could easily do the same.

One other thing i need to mention is that i have not included a couple other things on the charts. The recent move up for AUT is also a 200% move of the last major move up so something else to consider.

Anyway im not in and never have been in either stock but just my humble opinion and just remember you need to 'sell' to make money on the stock :P

ARM

arm

AUT

aut

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