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Paladin Energy Ltd PALAF

Paladin Energy Ltd is an Australia-based independent uranium producer with a 75% ownership of the world-class long life Langer Heinrich Mine (LHM) located in Namibia. The Company also owns a portfolio of uranium exploration and development assets in Canada and Australia. Its segments include Exploration, Namibia and Australia. The LHM is located in central western Namibia approximately 80 kilometers (km) east of Swakopmund and 85 km northeast of the Walvis Bay major deepwater harbor. Its exploration projects include Michelin, Manyingee and Mount Isa. The Company, through its subsidiary Aurora Energy Ltd, holds a 100% interest in over 98,320 hectares of mineral exploration licenses. These are located within the Central Mineral Belt of Labrador, Canada. It has a 100% interest in the Manyingee Project. This project is a sandstone hosted uranium project consisting of 41 Mlb across two deposits. It wholly-owns a project comprised of three promising uranium exploration sites in Queensland.


OTCQX:PALAF - Post by User

Bullboard Posts
Comment by PUNJABIon Apr 17, 2013 10:44am
302 Views
Post# 21265121

RE: The Question

RE: The Question

When you trade a stock you should be prepared for any outcome & have plan to deal with it. Trading is all about probabilities. You have to constantly assess and reposition to the changing circumstances. Fundamentals, sector, technical indicators & overall market conditions are all important.

You can afford to be wrong a few times & should be able to manage your exposure & get out of a bad situation at break even or a reduced loss by having all options open to you this is only possible when you hold huge amount of cash & do not take excessive position in one stock. If you see a stock going down sell it & buy it cheaper even  if you are selling it at a loss. You cannot do this in investment account. By doing this you are reducing your losses & repositioning & managing your exposure by not increasing your position & getting some cash out. The risk with this approach is that you sell & then you wait too long to buy in & the stock price moves above your sale price. If you do this the same day the this risk is reduced. For risk management you should know how to trade a range bound & declining trend stock. If you think that the stock may be bottoming out on a big decline then you can increase the position & start shedding at it bounces. If there are pull back then you reposition. Under normal trading condition I use RSI to increase / decrease enter or close positions. If you can identify the trading pattern of a stock then your results would improve. For a strong upward trend stock it is better to buy & hold.

I consider PDN as range bound to a declining stock. The bad thing about this stock is that the trend is set by Aus. Which I do not like. If you put stop losses you can have very unpredictable results as the stock gaps down when it come under pressure in Aus. I never put stop losses. I am not saying that it is a bad idea in general for other stocks. It is not my style because I do not want to lose control of the trade. You have to develop a style that works for you. Everyone is different. Any approach is good where you have more profitable trades & few losing trades. No one can be right every single time. So do not buy a full position ever.

 Technically you have a trade at double bottom. Put the CCO chart on PDN it is doing the same thing. At double bottom area PDN has historical support for about 10 years & technical indicators such as RSI & stochastic recommend a trade. On fundamental basic the stock offers good value in this area which offers a very good risk to reward ratio. . I will trade this stock in the area & if it  keeps dropping I am ready to trade it as an declining trend stock & as the share price gets better then I would increase the quantity of shares that I will trade. At certain price I would accumulate & and wait for UUU payout trade. With reduced price the down side is further reduced. The problem with UUU payout trade is that we do not have a date it could a month or two. For me two months is  bit long period for a trade.

Overall market can have an impact on shares too. You cannot ignore summer doldrums.

When you trade do not be greedy. Take what market gives you. I trade for small spreads all the time. My cost is $7+7= $14 flat even a spread of cent is profit for me. Over a year that $7 flat trade can become a very big amount if you are an active trader.

To be a good trader you should have capital & tools & should be able to perform fundamental & tech analysis & figure out the trading pattern. If you can read the tape & constantly track the market book then you can do small spread trading which is low risk trading.

 

 

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