I was given a rude awakening on Wednesday morning when I saw a premarket news announcement come out of Sasol. I knew off the bat that this was going to be bad for my trade at the open and it was. I got stopped out for a loss on a trade that I was very positive was going to work out for yet another successful trade.
The News announcement: Sasol disbands debt-ridden BEE scheme, launches replacement
"Johannesburg - Petrochemicals giant Sasol announced on Wednesday that it will disband its black economic empowerment scheme Sasol Inzalo when it matures next year. In its place, it will launch a new broad-based black economic empowerment scheme, the R21bn Khanyisa empowerment scheme." – source Fin24/ News24
Link to full article: http://www.fin24.com/Companies/Industrial/sasol-disbands-debt-ridden-inzalo-bee-scheme-20170920
General Trading Recap:
The Sasol Limited (SOL) trade did not work out so always keep in mind that in trading we win some and we lose some, the key is to win more than you lose and If we got everything right, trading would be boring . . .
So, for the beginners always keep these points in mind when placing your trades.
General points to remember when placing your trades:
- Market that you trade. (equity market can be very volatile)
- Risk management. (stop loss, entry, exit)
- Size of position: (number of shares/ Contracts you trade)
- Don’t be greedy (psychology)
- Stick to your trading plan.
- Economic factors, news events (Company specific information eg SOL BEE transaction)
Always keep these factors in place and remember them when placing your trades. Onward to the next opportunity #Winning.
Always remember to apply your risk management measures before placing your trades as this will keep you trading in the markets.
Read more notes by Barry HERE.
All charts sourced from Bloomberg
