Until your $13.50 half starts dropping. You simply doubled down on a losing trade, hoping it would turn around. Fortunately for you it has so far, but what if it hadn't?
sold my $27 parcel at $20 so take a capital loss on stock for finnacial year but still a profitable overall trade
thanks people for your concern my philosophy is to get on a smaller company with buying support and ride it up a little and get out before others dump it
for larger cap stocks with good fundamentals i am happy to hold if they drop
i will dollar cost average if they fall seriously
wesfarmers bought at $27 then $18 and took up the $13.50 offer
averaged at $19.12
sold my $27 parcel at $20 so take a capital loss on stock for finnacial year but still a profitable overall trade
In hindsite of course you would say no now but was FMG a "larger cap stocks with good fundamentals "
uhm lol. TH is a freak. It is extremely risky because 99.9% of other traders will blow the entire $800, or whatever he started with in no time if they try to trade the way he does, without sufficient/similar experience.
You have to practise, practise and then practise some more. Its all about screen time, years off it.
I would've thought letting winners run and cutting losers short would be the logical way to go
thanks people for your concern my philosophy is to get on a smaller company with buying support and ride it up a little and get out before others dump it
for larger cap stocks with good fundamentals i am happy to hold if they drop
i will dollar cost average if they fall seriously
wesfarmers bought at $27 then $18 and took up the $13.50 offer
averaged at $19.12
sold my $27 parcel at $20 so take a capital loss on stock for finnacial year but still a profitable overall trade
sold my $27 parcel at $20 so take a capital loss on stock for finnacial year but still a profitable overall trade
Logical yes.
The real question for EVERY trader to answer with regard to your logic (Whether they agree or not) in both Hold or Sell is.
WHEN
Yep, and back in they go again, capital intact, a few days later.Stocks go up and down all the time....all the short term traders posting here
have sold XYZ at a small loss only to see it turn around a day or 2 later.
Yep, it works most of the time, given time, until it doesn't...and then it blows your account up.Averaging down works, most of the time, given time, if you've got the time....and do it with a plan.
In hindsite of course you would say no now but was FMG a "larger cap stocks with good fundamentals "
When to let winners run and cut losses short? I don't think so, as I think it is always the aim of a good trader. I say the real question is why. If done for the right reasons, letting losses run may in fact be letting winners run (if we think a trade needs more room to move), and cutting winners short may in fact be cutting losses short (if we think that the trade has run its course).
In hindsite of course you would say no now but was FMG a "larger cap stocks with good fundamentals
You say why I say when.
The why needs a point in time which becomes the when.(Decision time).
Who's on first?
Hey jono,
I started trading seriously in 2005 and made 150% (20k to 50k) over the next 18 months. Was stoked obviously but come end 2007 I made a couple of MAJOR mistakes, ie NOT USING STOP LOSSES!!!!! Rode AED all the way down and lost 10k, then stupidly thought that CIty Pacific was a good buy at $2ish and rode it down, currently my 12k in that trade is worth about $500
So I must add my support to the MUST CUT LOSSES and ride winners crew.
Oh, and I think for the 08/09 year so far I am running somewhere in the negatives (~-20%), mainly because of the CIY and AED trades.
my
"When" and "why" necessitate each other, but I'm talking about the quality. I think a quality "why" leads to a quality "when", but not vice versa, as without a quality "why", one doesn't know at what point in time "when" becomes quality. However, with a quality "why", the "when" falls into place.
I graph the equity curves, weekly returns, yearly returns and plot the R returns (return relative to amount risked - this normalises returns). I look for trends in the data and in behaviour. Based on this, you can also objectively decide what systems to discard or what can be tweaked.
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