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Morning all,
As I mentioned in a previous post I'm new to all this but heavily invested in Boohoo (8500 shares at 274p average). I had to average down over the last few days heavily as my average was 317p due to some rookie mistakes. I'm just trying to understand how a large institution opening a large short position can pull the price down?
I read the news over last weekend and personally opened a short position Sunday night, it hit my limit first thing Tuesday when it gapped down and i walked away with 3450gbp or something, pretty stoked with that I've now opened a long position, nowhere near the same size.
Why do shorters get such a bad rep? As mentioned im heavily invested in Boo and will continue to be until i double my money, but if bad news comes out... why wouldn't you short it? We're all here to make $$$ after all...
Personally opened a short position last night at 272p, with a limit of 229p. I woke up and had made 3432gbp, covering my losses. Not only that but i bought another 10k shares at 235p bringing me ****e average down to 275p, which im pretty happy with, now with it back on the rise, i've had a pretty good morning to say the least!
@HarChris
Likewise, and 100% of my mates do not care about the allegations or share price, and will continue to buy Boohoo products, more so with more lockdowns looming and what not. Infact, one of the few friends i've convinced to purchase a few shares has expressed that he much prefers BoohooMan over Asos... and look at the share price of that.
I think if it looks like its going to test 230 I'll sell half my holding, im up this year so can afford the loss both psychologically and financially. (I bought Tesla back in March and made enough to not work for the rest of the year). So that's where im at with that.
I do believe I'm not trying to assume anything, they have some serious allegations against them, and clearly, the media have a bone to pick with them which is obviously not helping,. All in all, it doesn't look good for Boohoo right now. I generally have quite a high-risk appetite though.
I don't know the reason for the sell-off, but again from what I've read this morning, PwC as auditors would have legally had to of informed I guess who, the media? public? If they'd uncovered anything substantially incriminating against Boohoo before stepping down. Happy to be corrected on that though.
The brand may not come back! But it also may. I just think with more lockdowns looming, online shopping clearly taking over...
Having gone for a mooch around Covent garden yesterday, it's dead, in clothing stores you cannot even try on clothes anymore, that was LITERALLY the only appeal left for me jumping on a stinky tube (northern line), and going to the shops to look at clothes, now that simple exercise has gone due to covid, really, what is the need to go into town anymore to shop?
Couldn't even book a reservation at Sky Garden without proof of address ffs!
So the way i see it (as i watch my stochastic, RSI and volume indicators) is that right now people have panicked and the share's now oversold. The fundamentals look good, Boohoo has cash, people like the brand... it'll come back. Do i think this is the last time Boohoo will fall off a cliff? Probably not no. But eachtime it does (hopefully, fingers crossed), it doesnt go as low as the previous low.
Yes, I'm currently sitting on 4384 shares at an average of 304p, real money... and -1341GBP lol. I did have 4000 shares, and like i said panic sold last time it dived and sacrificed my 290ish average to buy back in, lesson learnt, so this most recent dip is a buying opportunity for me, as ive managed to average down from 317p to 304p.
My original plan was to sell at 400 but as we know this came and went very quickly. Ideally, i'd like to sell between the 425-450 range, however, if and when, and i do believe its more a case of when, it tests 400p continually over a period of time, I'll probably re-evaluate depending on the fundamentals and go from there.
And the short position I've opened is in a Demo Spread Bet account, as I said, this is just for practice. I come from a background in travel photography, so seemed like a good idea to jump ship and learn about how money works with everything that's going on.
I'm learning to day trade and putting into practice what I've learned, thought I'd be a good opportunity to practice tbh. I'm not day trading with real money just yet.
My target to sell Boo was 400p, which as we all know hit for approximately 1.3 seconds a few weeks ago, looking back, i'd have happily sold at 390p or so if i knew this was going to happen obviously. But as i said, we are still technically in an uptrend, the fundamentals are good, and i like the brand, so i have every reason to hold and top up.
Im very new to investing, probably naive, with a sprinkle of stupid, but from what i've read about this share over the last 6 months..
- They have tonnes of money
- My mates (21-30ish range), all like Boohoo, like the fit, quality, and especially the price
- They dont even advertise a whole bunch compared to other clothing brands, yet still produce strong sales.
- And from what i've read this morning auditors are supposed to change every 5 years.. i think?
- Its still technically in a strong uptrend if we're looking at the charts on a 3/6/ or annual basis
Either way i opened a short position with a demo account so if it does completely tank i'll have lots of monopoly money to brag about. I also bought 2k more at 270, and have been able to rectify my mistake slightly of selling at an awful time (had an average of 290p... sold out and bought bakc in a few weeks ago and my average was 317p, kicked myself for that. But today have managed to bring that back down to about 304p.
Good luck all, im still holding :)
When people say 'do your own research', what exactly do people mean? I'm new to this, and where as the numbers and technical aspects of researching a potential buy go abit over my head, I do dig fairly deep into fundamental analysis. What anyone be willing to share their in's & out's of what their 'research' involves? Would be much appreciated! Not sure if theres an etiquette to asking for that sort of question at all so apologies if its frowned upon asking how someone research's their stocks!
On a side note... in to the tune of 4k shares at an average of 300p with Boohoo and currently up around 3k in profit, very happy with that for my first big buy!