Comments (7)

May 13, 2010

Sit back and wait if you are fine with margin. At current 8pe and 1.2 book value GS trades at ridiculous discount. Even if GS settles for a few B dollars, stock will skyrocket.

May 13, 2010

Regarding the investigation... its not the fine value that hurts GS (even if its a few billion, that is NOTHING to them in the grand scheme of things), its the impact to their reputation that they (and shareholders) are concerned about.

In terms of your particular trade, let me get this straight... you will break even at 161, have a target of 164, and a stop at 130? Thats running very, very high risk relative to the reward (especially considering the legal proceedings with GS). In addition, you're leveraged AND already "hoping to break even." Please don't take this the wrong way, but I think it may be a smart move for you to step back and review your current approach to trading. Paper trade for a bit, read a few books on the subject (Market Wizards, Stock Operator, etc etc.) and come back with a better understanding of risk-reward. Many of the best traders on the street only win 30-40% of the time, and its their risk management that sets them apart from the rest.

May 13, 2010

I tend to agree with tgtrader. Limit @ 164 and stop @ 130 seems a bit out of proportion. If you are willing to endure such volatility on the downside, why not open yourself up to the upside of trade? If the stock can weather through to $164 and the market doesn't randomly shit 1,000 points, GS will continue to move. It's multiple is crazy low compared to other banks.

Goldman is a great company dealing with temporary reputation/brand issues. They will continue to post monster numbers.

May 13, 2010

Btw, Why would you even put limit for a long -term trade?

May 13, 2010

one of the most basic principles in trading is to cut your losses and let your profits run... you're doing exactly the opposite. do yourself a favor and re-evaluate your trading system (if you even have one) before committing and borrowing more money

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May 13, 2010

Don't eat like a bird and shit like an elephant

May 13, 2010
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