Goldcorp (G)

[gibor]

Anyone looking to average down their prices or pick some up?

Under $45 again.

cannadian, I don't know if it would be wise to set a limit at $43.43. That's probably where you will find a lot of support if it makes it there. Bad place to sell, IMO.

I don't sell ... I probably will buy more if it drops below $44 ..G has a huge support ar middle 43's level.... Last year I bought G at much higher price and was sharply down, but was holding and sold with profit in low 52's...

[cannadian]

I'm not sure I would set a stop loss there at all, though.

I would either make a tighter stop loss (ie, closer to your original buy price) or not include a stop at all.

I almost never use stop losses. The fact is that if the stock price reaches $43, it is probably more attractive, and thus more likely to increase than at say, $44.50.

If you were to have placed your stop at $44.50, this would minimize your risk even further, but it allows for less volatility. It depends on how you feel about it. See, I wouldn't use a stop loss because I don't see Goldcorp going below $42. And if I don't see Goldcorp going below $42, I wouldn't place a stop loss at $43, I would want to buy more at $43.

It's all up to you, But I think $2 of downside is a big range for a stop loss on this stock. Essentially, you could be throwing a couple hundred away, right? Nobody wants that. There is nothing wrong with the company. It is not all that speculative, so there is not much to worry about in terms of downside risk. A lot of the downside has already come, if you ask me.



Not sure what you're trying to say, zylon. Maybe I missed the point, but what does this have to do with Goldcorp, per se?

Goldcorp does not follow the price of gold at all times.

The support level isn't at $44.50 though, it's around $43.50. If the typical bounce back from this range is going to occur it should occur before this point. Therefore I feel it's the most strategic area to place my stop-loss (slightly below support).

To be honest, I don't know all that much about mining companies - it's not in my circle of competence. But I think the fundamentals of gold are quite strong, I think the metal's price is bottoming out, and that chart shows that Goldcorp has been oscillating between $45 and $55 all year long, like clock-work. That and it has incredibly strong support at around $43.50.

This makes me think that the odds of Goldcorp going up from the $43.50 range exceed the odds of it going down. And if that's the case then my downside risk is only ~$250 but my likely upside is around $500-$900.

So not only do I believe the odds are on my side that Goldcorp will increase in price from around this level, but the upside is also far greater than the downside.

I'm really tired at the moment so hopefully that makes sense, I basically think it's a statistically intelligent swing trade right now.

Only thing I'm not so sure about is how it will react if the overall market corrects.

[KaeJS]

cannadian, go check the "What are you buying" thread.

I made five profitable trades on Goldcorp today.

I understand what you are trying to say in regards to your downside risk versus your upside potential, but the problem is: That's a fact.

That fact isn't going to change. That's the way the stock moves/reacts. I just think by placing a stop loss at ~$43, you are shooting yourself in the foot. If you bought at $45, why wouldn't you buy at $43? If you're going to buy at $43, why would you stop loss $43?

If you were concerned about losing funds, you should have put a stop loss maybe $0.50 cents away from your original buy, not $2+.

What happens if Goldcorp dips to $42.85 and then shoots to $49? You will be pissed.

See the image below:

[Betzy]

KaeJS Nice work, I guess you have only on set of commissions for all those trades? Other wise the profits are eaten up with comm

[Ihatetaxes]

cannadian, go check the "What are you buying" thread.

I made five profitable trades on Goldcorp today.

I understand what you are trying to say in regards to your downside risk versus your upside potential, but the problem is: That's a fact.

That fact isn't going to change. That's the way the stock moves/reacts. I just think by placing a stop loss at ~$43, you are shooting yourself in the foot. If you bought at $45, why wouldn't you buy at $43? If you're going to buy at $43, why would you stop loss $43?

If you were concerned about losing funds, you should have put a stop loss maybe $0.50 cents away from your original buy, not $2+.

What happens if Goldcorp dips to $42.85 and then shoots to $49? You will be pissed.

See the image below:

If you had of just bought and held those 300 shares until today you could have sold for a $600 profit! Stock is headed up up up today.

[KaeJS]

If you had of just bought and held those 300 shares until today you could have sold for a $600 profit! Stock is headed up up up today.

Of course, but who knew it was going to rally as much as it did?

I still have my original 100 shares at $45.45

Just think of the poor suckers who sold their G shares to me this morning for $44.27!!

[Ihatetaxes]

Of course, but who knew it was going to rally as much as it did?

I still have my original 100 shares at $45.45

Just think of the poor suckers who sold their G shares to me this morning for $44.27!!

LOL. True enough!

[cannadian]

cannadian, go check the "What are you buying" thread.

I made five profitable trades on Goldcorp today.

I understand what you are trying to say in regards to your downside risk versus your upside potential, but the problem is: That's a fact.

That fact isn't going to change. That's the way the stock moves/reacts. I just think by placing a stop loss at ~$43, you are shooting yourself in the foot. If you bought at $45, why wouldn't you buy at $43? If you're going to buy at $43, why would you stop loss $43?

If you were concerned about losing funds, you should have put a stop loss maybe $0.50 cents away from your original buy, not $2+.

What happens if Goldcorp dips to $42.85 and then shoots to $49? You will be pissed.

See the image below:

Hey man, I see the point you're making - if the stock looks good at $45, then it should look even better at $43, not worse. Why would I want to sell when fundamentally the stock is a bit stronger relative to its price?

Because I flat out don't know anything about the mining industry. Goldcorp has a p/e of about 25, and while I know a decent amount about gold/silver - my knowledge of the miners is zero.

So that being said, Goldcorp isn't actually a company that I'd want to hold long-term, I'm only doing this because I see it as a statistically intelligent swing trade at these levels - and because the stock has worked like clock-work so far.

The reason I would sell at $43 rather than average down is because I'm making this trade based on patterns/technicals rather than fundamentals - if the stock breaches $43 then it is no longer following the pattern (the primary reason I made the trade) as well as if it breaches $43 then it breaches a very strong support level which is quite bearish.

Nice job on the trades today! Especially since you managed to hold onto your original shares and collect the 6% gain as well as grabbing some change here and there

[KaeJS]

Goldcorp has a p/e of about 25, and while I know a decent amount about gold/silver - my knowledge of the miners is zero.

So that being said, Goldcorp isn't actually a company that I'd want to hold long-term,

In the short term, P/E Ratio's don't mean a damn thing.

When you are looking for short term trades, you are looking for two things - price action (which you noticed already) and fresh news.

Anyways, congratulations to both of us on our Goldcorp trades.

[killuminati]

Hi guys,

I'm pretty new around here but I liked the talk of goldcorp on Tuesday so I bought in at 44.80. Glad I did because yesterday was a nice surprise gain of me

Any estimates on a good exit point? I know lots of people have been saying 55, I wonder if we will get another dip before going that high.