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Interest rates remain the same

Discussion in 'General Investing Discussion' started by perky, 4th Apr, 2007.

  1. perky

    perky Well-Known Member

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    15th Aug, 2005
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    Sydney
    Just announced.

    Wonder if it will remain the same next month?

    As an aside , watching forex , the A$ dropped .5c straight away (looking at the chart thru my CFD provider).

    The share market will probably have a good day today I think (go above 6000 on the ASX200 , and the Dow is now above 12500).
     
  2. MJK

    MJK Well-Known Member

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    17th Aug, 2005
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    Its a good day. Good consoditation after yesterdays bounce back.

    MJK:D
     
  3. Jacque

    Jacque Team InvestEd

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    Happy news as far as many are concerned :)
    With inflation still low, the major concern was consumer spending still being too high, but it at least provides some breathing space for the housing market again.
     
  4. Glebe

    Glebe Well-Known Member

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    I'm happy :)
     
  5. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Location:
    Sydney, NSW
    Yep, a good day! Up over 80 points (1.3%). And there's been some big jumps and falls lately, up a percent, down a percent. None of this holding at a level or creeping up 20 points a day. Good environment for the Navra investors out there.

    I'm glad I'm back in, but a bit cut that it took so long and I missed out on some of the bounce back. Between the day I approached Navra and said "I want back in today" and the day my new loan application was processed under a new name two weeks or thereabouts had lapsed. Took my entry price from the $1.15 I identified as my desired entry price, my "buy" decision to a $1.1882 actual entry price. That delay cost me about $30K in lost growth whilst the slow wheels that are financial institutions kicked over.

    The lesson in that one: "Know the limitations of your strategy before you try and execute it!" I hadn't factored the time element in my trade the pull-back strategy to transfer my holdings into my companies name. As a result I missed out on $30K of growth and also ended up paying about $20K odd for the privelege of changing names. i.e. Sold at $1.1624 and bought back in at $1.1882. Had I been able to trade the dates I wanted to I would have made $10K through the transaction... So, for all those MichaelWhyte detractors out there that reckon I only post the successes and have tickets on myself: here's your opportunity to dig the boot in!

    Ah well, its all just "opportunity cost", not actual cold hard cash I have to dig out of the drawers. :D And I reckon the last few days has meant we're well above that $1.1882 buy price when we add back the coming distribution.

    Its all good.

    Cheers,
    Michael.
     
  6. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    If it makes you feel any better Michael - I made a potentially costly mistake last week ... I sold down of one of my funds (CFS W/S Property Securities) and instructed my margin lender to take the proceeds as cash paid into my loan account, rather than swapping into one of my other CFS investments.

    I have found that swaps usually take place within 24-48 hours of my instruction being sent, so it's possible to time things reasonably well ... but unfortately I decided to take the money as cash ... and I'm still waiting for it !!!

    So I missed out on a LOT of growth in the last two days - that Property Securities fund went up nearly 3.4% yesterday alone, and will be up again today (but still way down from its recent peak).

    And I've also missed out on the growth I would get from the other funds I would have swapped to. The stupid thing is - I was always just going to reinvest that money into one of my other CFS funds anyway ... I don't know why I didn't do it as a swap.

    *sigh*
     
  7. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Sim,

    Yeah that does make me feel a bit better actually. You know how it is, misery loves company. :)

    The thing is that I could have done my transaction as a name swap too, and I think my fee would have been about 0.6c or the spread between the application and redemption price. That's it. But I thought I could time the sale and actually profit through the transaction by trading the fund. In theory it made sense and I timed my sale well, but I hadn't allowed for the time lag in actually getting back in under a new name. Those weeks killed me and cost me much more than the 0.6c would have cost me. It went from 0.6c to 2.6c to execute the transaction...

    I'm a bit bummed that I couldn't buy back in when I wanted to and had to wait for the big behemoths that are financial institutions to turn their wheels. If I could have traded it as I saw it then I would definately have profited through the transaction. That's the big disappointment.

    Cheers,
    Michael.
     
  8. coopranos

    coopranos Well-Known Member

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    Perth

    No need for boots mate, personally I dont like to see anyone who is actually taking control of their future take a financial hit of any kind.
    Hopefully you didnt take my comment previously as any sort of tall poppy syndrome, I am just not a fan of someone patting themselves on the back repeatedly in a completely unrelated thread - reminds me of the guy at the party who always steers to conversation back to themselves!
    As I stated in a reply post (that i think was deleted), if you had started a "MichaelWhyte is awesome" thread and posted your stuff in there instead, you would get nothing but kudos from me.

    Anyway, as far as your actual timing goes, it may be a case of your vehicle not matching your strategy. With the lag times in managed funds, I think it is an exercise in futility to try and "trade" the short trends we have had over the last few months. as you say in one week we might have 3% down and 3.5% up, but this is of no value if you cant get in and out in less than a day.
    If you are keen on timing things like this maybe you could look at some exchange traded funds, that way you can be in and out as quickly as you want.

    Just remember there is no point looking at past transactions as anything other than lessons for the future, energy wasted on kicking yourself about something you cannot change is energy that could be diverted into making your next transaction a success. And the fact is it sounds like you are still well and truly in a profit situation, so dont view a lesser success as a failure!