Australian (ASX) Stock Market Forum

The official "ASX is tanking!" panic thread

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Everytime i have a glintof hope it gets shattered in this thread.
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Good!! Your starting to get to know her!
She loves your money and spends it on herself and doesn't cair about your hopes.
Unless you set her traps that will make sure she can only get so much for all your trouble and even then she can whip out her whip saw and cut off your head and feet.
And Tech said Radge Said 'It's on.' That call has been incorrect both ways for the last two years.
It keeps getting tweeked and that's the way it works!
What's that Boa constricter doing...............................
 
So my brief stint at investing came to an end this morning. I would say I am a novice value investor at best but with the way things are atm I couldn't hack it lol. Took my 15% profit that I made over 2 days and ran thinking today we would tank after the dow was down another 500pts. Think I will sit it out until things become a bit more clear! :D
 
YouAgainstMe said:
So my brief stint at investing came to an end this morning. I would say I am a novice value investor at best but with the way things are atm I couldn't hack it lol. Took my 15% profit that I made over 2 days and ran thinking today we would tank after the dow was down another 500pts. Think I will sit it out until things become a bit more clear! :D
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Good for you for taking your profits - I envy you... I, as I have mentioned so many times before - wish to break my laptop, and sever my internet connection and live in the mountains...
 
RexBudman said:
Good for you for taking your profits - I envy you... I, as I have mentioned so many times before - wish to break my laptop, and sever my internet connection and live in the mountains...
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Don't dismay, learn from the experience. Ask yourself:

- What was the reason why you entered a given trade?
- What was your exit strategy? At what price or under what conditions were you to exit?

Then ask:
- Did I follow my entry plan (price hit $xx) or did I buy on emotion (stocks are super cheap now!)?
- Did I follow my exit plan? (Must... hold... on...)
- Did I have appropriate position sizing? (How much capital did you risk)

And finally:
- Have I identified areas of improvement for my plan? Tighter/looser stops? Better position sizing? etc
- What knowledge do I need to acquire? Where can I get this knowledge?
- Do I have the funds to continue trading at this present time or do I take a break, continue learning, then come back to it? (The market has been and will be around for years, there is no rush)

Losing money is not the worst thing you can do in times like these - not learning from your mistakes and trying to improve yourself is far worse.
 
KurwaJegoMac said:
Losing money is not the worst thing you can do in times like these - not learning from your mistakes and trying to improve yourself is far worse.
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I differ on this one, losing money in times like these means that you have sold your stocks too cheap and that is the worst thing you can do.

Well... I have finished my buying for now, I have to start putting money aside again just in case the market goes to 3500 so I can buy more and even cheaper!

:)
 
littleshire said:
I differ on this one, losing money in times like these means that you have sold your stocks too cheap and that is the worst thing you can do.
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I differ on this one, losing money in times like these means that you have bought your stocks too dear and that is the worst thing you can do.

Anybody can deem themselves to be right by holding stocks for years and years - eventually the market is likely to recover above the price you paid. It does not change the fact that you were wrong in your entry.

I acknowledge however that 'value investors' operate with a long term perspective and will maintain a short term paper loss if they think the stock price is below its' intrinsic value. Bear in mind that stocks can get much cheaper very quickly, buying and blindly holding because they are at a discount to intrinsic value means nothing when the stock keeps going down, down and down.

Just mentioning this for the newbies, because many get caught in the 'it will eventually recover' trap. There is a difference to buying a cheap stock relative to 'intrinsic value' compared to buying a cheap stock because it's cheaper now than it was a year ago.
 
KurwaJegoMac said:
I differ on this one, losing money in times like these means that you have bought your stocks too dear and that is the worst thing you can do.

Anybody can deem themselves to be right by holding stocks for years and years - eventually the market is likely to recover above the price you paid. It does not change the fact that you were wrong in your entry.

I acknowledge however that 'value investors' operate with a long term perspective and will maintain a short term paper loss if they think the stock price is below its' intrinsic value. Bear in mind that stocks can get much cheaper very quickly, buying and blindly holding because they are at a discount to intrinsic value means nothing when the stock keeps going down, down and down.

Just mentioning this for the newbies, because many get caught in the 'it will eventually recover' trap. There is a difference to buying a cheap stock relative to 'intrinsic value' compared to buying a cheap stock because it's cheaper now than it was a year ago.
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Like Warren Buffett said: "I realized technical analysis didn't work when I turned the charts upside down and didn't get a different answer":) Ask him how many wrong entries he had.

You are partially right regarding value investing, but I have to clarify here that the price only recovers for the stocks with good fundamentals, the others just go kaput: Enron, HIH, WorldCom, B&B, ABC Childcare

For the newbies: if you are playing the 'value' game, check the fundamentals of your stocks on a regular basis, avoid ALL stocks that don't have a continuous (min 5 years, 10 years will be ideal) profit history. Learn how to differentiate between a stock that goes down because of seasonal changes (like most retailers are doing now) from the ones the one that go down because they are going broke (ABC Childcare).
 
littleshire said:
Like Warren Buffett said: "I realized technical analysis didn't work when I turned the charts upside down and didn't get a different answer":) Ask him how many wrong entries he had.
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Buffet doesn't buy shares, or if he does he buys a few million bucks worth of Amex, Coke or the majority of a mismanaged company and then turns it around to profit.
Amateur punters trying to think and act like Buffet are always fun to watch and read !

littleshire said:
You are partially right regarding value investing, but I have to clarify here that the price only recovers for the stocks with good fundamentals, the others just go kaput: Enron, HIH, WorldCom, B&B, ABC Childcare
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You forgot to mention that OneTel also had good fundamentals, well according to the Packers it did and they couldn't have distorted the facts to keep the mug punters happy while the share price dived... seriously.
Telstra has good fundamentals, I make money out of it twice each year by holding it for about a month, if you're into fundamentals you have to have some of those in the bottom drawer :rolleyes:

littleshire said:
For the newbies: if you are playing the 'value' game, check the fundamentals of your stocks on a regular basis, avoid ALL stocks that don't have a continuous (min 5 years, 10 years will be ideal) profit history. Learn how to differentiate between a stock that goes down because of seasonal changes (like most retailers are doing now) from the ones the one that go down because they are going broke (ABC Childcare).
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Telstra must be going broke then ?

While you believe that stuff you will remain in the 90%+ majority with a big bottom drawer.
 
Went to Europe for a holiday once XAO support broke a while ago. Sounds ridiculous but sometimes the best thing to do is ignore the market and I can't seem to do that unless I take myself away.

Scanned the charts for the first time last night. Seems like I may have planned this holiday for a little too long. Love that blow off low.
 
RexBudman said:
Good for you for taking your profits - I envy you... I, as I have mentioned so many times before - wish to break my laptop, and sever my internet connection and live in the mountains...
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I hope I didn't come off as bragging or anything? Apologies if I did it wasn't intended and I think I was more lucky more than anything.
 
drsmith said:
I think now they turn the power off (or something similar) after a fall of something or another.
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I think you are right, I vaguely remember something like that happening during either one of the big gfc falls or the tech bubble fall - the market just shut down for an hour or something.

Below are the most recent biggest falls - I'm sure it was one of those that they shut the system down for a while.

1 2008-09-29 10,365.45 −777.68 −6.98
2 2008-10-15 8,577.91 −733.08 −7.87
3 2001-09-17 8,920.70 −684.81 −7.13
4 2008-12-01 8,149.09 −679.95 −7.70
5 2008-10-09 8,579.19 −678.91 −7.33
6 2011-08-08 10,809.85 −634.76 −5.55
 
Time to go to bed and read this weeks Eureka report for some more learnings :).

It's a pretty interesting one this week!

woot.

Night all :)
 
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