What do you do with that dog stock?

[SevenFX]

Think the Original poster was interested to hear views on stagerties of stocks that shouldn't have been held...not so much guessing which one it was.

Better we stick to this than filling up thread with dog stock guesses, as the list may never end.

SevenFX

 

[ROE]

Does it pay decent dividends? Can you buy better stocks with the money you sell from this stock? The answers is no keep it ..else let it go..

 

[SevenFX]

Does it pay decent dividends? Can you buy better stocks with the money you sell from this stock? The answers is no keep it ..else let it go..

Good point ROE, as dividends can be attrative, but say they usually linked to company performance, and guessing SP is reflective of company performance.

SevenFX

 

[Trader Paul]

So I bought into a stock that in hindsight I probably shouldn't have, a long time ago.

I've withheld the name of it to make this a generic thread about how to deal with bad decisions, but I don't mind saying what it is if anyone actually cares.

Hi Silence,

..... if you post the name of the stock, we may be able to see how far
ahead, a likely change in market sentiment may take place, using time cycles ...

have a great weekend

paul



=====

 

[Go Nuke]

I tend to have found (well my belief anyway) that with Biostocks they seem to rid up based on announcements.

For example, i hold CUV which wasgreat when they were making ann about phase 2 and 3 trials BUT now we have to wait for 1 to 2 years for some clinical results on their major projects..hence the reason i believe that the sp has declined so much.

Ive decided to hold but your topic caught my attention because the same thought has been going through my head "Hold or Sell...Im missing oppertunities"
Seen as it is only a small% of my portfolio Ive decided to rename it as a "Longer term Investment"

As for a previous biostock i bought at .42c....(CYC), well as soon as that share price managed to get back up to .42c...I kicked that dog in the nuts and sent it home" Goodbye!:axt:

Goodluck with your decision
GN

 

[rapture2002ca]

Hi guys,

I'm a newbie and I'm also in the same situation. Actually I bought two stocks a while ago and kept them far too long. One was for uranium and the other is gold.

Now I'm suffering the consequences of my inexperience I guess. I recently bit the bullet with the uranium stock and offloaded it and have almost made back the 6k I lost on it.

On the other hand I still have the non-firing gold stock which is still biting me on the heel the little mut. Hopefully I will learn from these costly experiences in the future.

Cheers

Shane

 

[SevenFX]

I recently bit the bullet with the uranium stock and offloaded it and have almost made back the 6k I lost on it.

Welcome Shane. and well done for letting the U stock Go.

They key is to cut your Losses Early, & let your Profits Run.

Holding onto the loss, can only limit that capital from making profit.

And once you accept, holding sizable losses is ok, your exposure to loss could increase on a bigger trade

Cheers
SevenFX

 

[ithatheekret]

Unless you have grand ideas about taking over the company , stop the emotional stuff and concentrate on what your doing and why your there .

He who hesitates loses !

 

[prawn_86]

On the other hand I still have the non-firing gold stock which is still biting me on the heel the little mut. Hopefully I will learn from these costly experiences in the future.

Welcome to ASF Shane

Please dont take this as investment advice, because its not.

But with the gold stock you are holding, providing it is a producer or close to production, or even an explorer with good results, one would assume it has more chances of going up than down. All other things being equal.

POG is very high and gold stocks are in favour at the moment.

 

[rapture2002ca]

Welcome to ASF Shane

Please dont take this as investment advice, because its not.

But with the gold stock you are holding, providing it is a producer or close to production, or even an explorer with good results, one would assume it has more chances of going up than down. All other things being equal.

POG is very high and gold stocks are in favour at the moment.

Hi Prawn86,

The gold stock is still an explorer and has been coming dowm for the last 2 years from it's high of around 30c. I bought in at 6.7c and am now losing half.

I've been saying to myself it's going to rebound because of gold being at almost an altime high but it hasn't shown any promise in the last 6 months. I might have to bite the bullet on this one but I know when I do it will probably go up then haha.

Cheers

 

[rapture2002ca]

Welcome Shane. and well done for letting the U stock Go.

They key is to cut your Losses Early, & let your Profits Run.

Holding onto the loss, can only limit that capital from making profit.

And once you accept, holding sizable losses is ok, your exposure to loss could increase on a bigger trade

Cheers
SevenFX

Hey SevenFX,

I now realise that holding on to a dog will only cause me pain in the future where I miss out on opportunities to make it back. Hopefully in the next month or so I can reclaw what I've lost.

Cheers

 

[So_Cynical]

Hi guys,
On the other hand I still have the non-firing gold stock which is still biting me on the heel the little mut.

Is there such a thing....perhaps u mean a non-firing prospector?

EDIT: lol posted before i got to the end of the thread.

 

[chewy]

Sell the dog and put what you get in to topping up on your best performing stock?

I recently did this with cfe and put it on to cvn - already made back more than the loss a few weeks later whilst cfe has continued to fall.

But a biotech would be different to most stocks. having to wait years for stage 2 and 3 results to prove it. I would of thought it would be more a case of hold for long term if you believe it works and is widely marketable (I hold MSB for this reason). Assuming as you said the SP has only been flat - if it was dropping significantly I'd worry.

But I am new to investing so could be completely wrong! lol

 

[wildkactus]

It's always best to cut losses early, and look for the next trade.
but look back over the trade to see where your research let you down.
I have found that I have learn't more looking back over these bad trade then I have the good one's

remember your in this game to make money, (unless youre a charity.)

so take the loss and move on.

all the best in your trading.

 

[nioka]

It's always best to cut losses early, and look for the next trade.
but look back over the trade to see where your research let you down.
I have found that I have learn't more looking back over these bad trade then I have the good one's

remember your in this game to make money, (unless youre a charity.)

so take the loss and move on.

all the best in your trading.

You are speaking from a trading point of view. The action may be quite different from an investing point of view. A trade and an investment can be quite different.

 

[thedave]

I think you need to have your get-out point in advance and stick to it. Hanging on to stocks that have fallen or not run is just the effect of ego on your thinking: that is, we hang on to dog stocks because we cant believe we were wrong and "surely they'll come back one day". They probably will, may take years, and in the interim your chance to reinvest and recover has gone a hundred times. I think of it like this: a 33% fall means you need a 50% rise to recover.

This is coming from a man who held Plenty River Mining from the day of the stock market crash in Oct 87 (yes, I was the one buying that day), until selling them 14 years later and taking the loss. Never again.

So when do you bail? Well, depends on the type of stock you hold. Blue chips falling 10% is scary, but penny hopefuls will do that all the time and then run.
Do some charts, look at the pattern, is this just going one way? Out.

Welcome from another newbie on ASF.

 

[shinobi346]

ABJ? $1 to 3.7cents :eek!:

 

[brendan87]

I guess OIL.

 

[Rainmaker2000]

Some good content in these posts guys!.......selling stocks is probably the hardest thing......anyone can buy one but when to sell a 'dog' or an outperformer, that's the question...............

All I can say is it more depends on how close you are to 'the story' rather than its stock price....Since its biotech, I'm guessing its 'outside your sphere of knowledge' so you should consider whether you want to play in this patch at all......the sell decision sound like its difficult just because you have little idea what's driving the company and its stock price.......Who would, its biotech, even the scientists involved may not know but you can be sure they are buying and selling.

If you get intimate with the company's story, then you'll know what to do....From all I've read, the stock price of bio techs over the short term bear little relation to the underlying business...but what would I know I don't touch what I don't understand

 

[shinobi346]

I Thought I'd post how I handle dog stocks - dog stocks being ones that I think have gone past the point of no return and won't be going up again to the level I bought them for.

Well I sell them asap I identify them and I put that money into a high risk stock that I have greater confidence in.

If it goes up and I make back what I lost on the dog stock - beauty!

If it far exceeds what I lost, then I go out for dinner.

if it dwindles even further, tough. I write it off on tax and I think to myself the money in the initial investment wasnt meant to stay with me anyway.