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Lost $1600 in one day trading OZL

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master82

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1 September 2008
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Bought 10000 OZL at 1.65 yesterday, sold today at $1.50 - shocking

I sold like any newbies would in panic - maybe I should just hold OZL and wait for next week, I don't know I just lost control - all I wanted to do was sell, sell and sell to cut losses.

The market is too volatile for the beginers at the moment, I think I should sell my portfolio and sit on the sideline until condition improves.
 
Mate whenever you buy use stops regardless of what you think and stick to them like glue!!! I normally use a 5% stop, and if it gets hit ah well, you will get burnt many times over not using stops......Also have a plan for what you want to do-are you in for a quick trade, if so you will also want a sell price etc
 
master, as a fellow newbie I know how u feel. what % loss was that?
 
Stops wouldnt have worked. Gapped down to $1.50 this morning. Were you trying to catch a falling knife?
 

sorry to hear it master82,

it happens to virtually every one at some stage, only consolation is you will probably recover from a $1600 loss

also, market panic -- difficult to keep a clear mind when things get hectic -- lots of market experience will eventually teach you how to stay steady when the heat is turned up

its all a learning curve
good luck
 


True!! If this teaches you anything its avery cheap lesson-you would feel a whole lot better if you knew how much I lost when MAK dropped hard a month or two ago.. Made it back on the bounce though
 
It is better to be standing on a jetty watching a sinking ship than being on a sinking ship watching the jetty
 
GreatPig said:
That's not correct. Percentage loss is based on the purchase price, not the sale price.

$0.15 / $1.65 = 9%


10,000 times $1.65 is $17,600???

GP
Click to expand...


I stand corrected on the first one. I was thinking he has lost $1,600, 10% would make it $17,600 less 10% = $16,000? Or $17,600/ $1.65=10,666 shares x $1.50 = $16,000 and a $1,600 loss? So seems to work for me, though Im tired and its been a long day...?
 
blogs said:
Gav--- $1.65-$1.5= $0.15

$0.15/$1.50= 10% loss

So he must have bought $17,600
Click to expand...

Blogs, it's 0.15/1.65*100=9.09% loss.

You divide the loss by the buy price, not the sell price.

And he obviously bought $16,500 worth, not $17,600.
 
master82 said:
Bought 10000 OZL at 1.65 yesterday, sold today at $1.50 - shocking

The market is too volatile for the beginers at the moment, I think I should sell my portfolio and sit on the sideline until condition improves.
Click to expand...

I find this a bit weird. You have brought a massively down trending stock that has lost 3 years of gains in 3 - 4 months. Yesterday it closed on or near its 3 year low and it gaps down 7% today and you spew out the trade because of the pain.

What was your thinking here? I think it was a crappy trade but to be suffering with ONLY a 7% drop shows that you had way to much of your capital on this?

master82 said:
I sold like any newbies would in panic - maybe I should just hold OZL and wait for next week, I don't know I just lost control - all I wanted to do was sell, sell and sell to cut losses.
Click to expand...
No a quick loss is a good loss. most newbies hold until they are down much much more.
 

10% of $17,600 is $1,760 blogs, not $1,600.
 

A many of lessons learn't in this sometimes cruel and choppy enviroment. Take a number and join the cue..... This won't be your last mistake.

It's how you can bounce back and learn from this adversity which will make the difference in future trades.

The first question I ask myself before I trade is.

What is my plan for this trade?

SGB
 
GreatPig said:
$1.65 down to $1.50 and you can't work out the percentage loss?

Are you sure you want to be in the sharemarket?

GP
Click to expand...

LOL its been a very long day (actually a long week), and I only quickly glanced at this thread. Obviously a simple answer, but I wasnt the only person here who stuffed it up
 
Sorry to hear about your loss master, although as misery loves company you will be happy to learn I lost about $4000 in 10 minutes a few weeks ago as I had a (way too) large long position on Silver just before it plummeted. I then tried to noobishly trade my way out of the loss (another $1500 down in a few hours) and hung on 'hopefully' to another loser as my last ditch effort to redeem some of my losses. All totally wrong. Funnily enough it was the first time I had not used a stop loss, and sadly enough it was on the advice of another trader that I didn't (his suggestion was not to use one as I kept getting stopped out due to the volatility of silver). Reinforced or made me learn some pretty strong messages.

1 - Never EVER trade without a STOP, and related
2 - Protect your capital
3 - Treat 'tips' from other traders as gossip. Some people have some gems of information for beginners but unless it relates to managing risk/capital effectively or some advice on how to find entries and exits, or software, etc I would be inclined to treat it with a massive grain of salt
4 - Manage your risk
5 - Don't trade without a trading plan. I have stopped while I write mine. I was 'lucky' for some few months trading very successfully without a trading plan but in hindsight I can see that I was more lucky then anything else and I was taking ludicrous risks (like 10% of capital), culminating in my big loss in silver where I am now back to square one.
 
nunthewiser said:
It is better to be standing on a jetty watching a sinking ship than being on a sinking ship watching the jetty
Click to expand...

yes... definately rather watch a sinking ship than be on one... but sometimes... one must catch the boat and hope it takes you somewhere... otherwise you'll be standing on the jetty forever

just research your boat a bit and make sure it ain't a rust bucket
 
OZL yesterday's close was $1.635 , but today it opened at $1.51 with today's high at $1.54 and low at $1.48.

I thought yesterday I bought at a good price at $1.65 cuz its 52 weeks was $1.63, obviously I got it very wrong
 
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