What is the longest you've held a losing stock?

cuttlefish · 6 February 2007

BSD said:
From my experience - it is the boring well-researched stock, bought when unloved and tripled-up-on when VERY unloved that turns into the fast (2 -5 years) 'pay off your morgage" and/or "retirement" stories.

The level of homework and/or patience is the thing that makes these ideas difficult to capitalise-on for 99% of market participants.

You do need to be very comfortable with the "long term value" of the firm to hang-on or triple-up when your 'baby' loses 15% one day and 40% over the year since you bought.

It takes strong 'faith in the numbers' to buy 5 times more when your current holding is being smoked. Or to carry 80% of your net worth on something that has five bagged over the last 18 months.

You can be shaken out of too many amazing deals because of noise.

This is pretty much on the money I reckon and have seen it a lot of times.

Applies to all investment classes not just stocks. The only thing I've come to believe in more recent times is that its possible to get the timing better on these situations once you know they exist which will make capital work a bit more efficiently - though if the quality investment also provides an above average yield the return is coming via that anyway. Key factor in making this strategy work is impeccable research and also a clear, unemotional criteria for identifying the difference between a very undervalued asset, a mildly undervalued asset, and worthless crud. Going against the prevailing sentiment is the hardest part of this strategy which is why clear objective criteria for entering the investment is essential.

Holdon · 11 May 2007

25% on my first trade, and never more than 10% now....thank you ASF posters for the enlightenment before I did something silly, luckily I learnt some great stuff before I came into some serious (inheritance) dollars too, a big thumbs up to all......

Rob_ee · 11 May 2007

3 Days exactly Bought BPT 1.33 got stopped out 1.29.

I have very tight stops due to lack of trading funds (17k only)
so am out almost immediately if it doesn't go the way it should.

I can't afford to lose to much ... so far worked well .. a total of 11 losing trades and 3 wining trades for a 2k profit in 4 months.

Sometimes get stoped out quickly and overall its been a good thing.

Brokerage only 18 per trade so not to damaging.

Rob

Spaghetti · 11 May 2007

Never very long because I see the money as being in one investment, the stock market. If it is in this or that makes no difference except the broker fee to tfr funds as long as it is not realised.

So I look at it as one investment and move the money to where it will make money next week. Can always move it back to loser.

The big issue I have is how to realise gains and losses. If I ever realise a good gain I always take a loss with it. Unless I have no losses then I have a party:

achan168 · 19 May 2007

Techbuy said:
This might be the winner! Back in 1998 A friend told me about the hot stock (now know as NIA) and to put your life saving on it. I had never bought a stock and this guy was "My Mate" so I bought a 1,000,000 for $15,000. Going to go to a $1.00 he said. Well they dropped through the floor completely then did a 40 to 1 reduction and I end up with 25,000 at about $0.02 and totally anti the stock market. I never looked at them again until I started to go back to the market in Nov 2006 so I have had the 25,000 through two or three name changes from 1998 to 2006. They have been to $0.55 (did not know as was not looking at the market) now at $0.265.
Its as if they are part of my life now and I leave them there to remind me of what a goose I was for listening to the "hot Tip" Bad move but Nickel is hot and they are in it who knows what tomorrow will do for them.
I am now day trading reasonably well but still got a lot to learn on how to read the market.
While books and training points you in the right direction it does not teach you how to read the market when you are running live, a lot of trial, errors and when a win comes it's cake all around. Thanks for a really great forum. Love reading all the info and posts.

Have you checked NIA recently?!? Your 1m shares bought for 15k would now be worth 1.385million! Your "mate" was right!

questionall_42 · 13 June 2007

This will be a cathartic process...

ION ($3K loss)
CRS ($3K loss)
Averaged down with MGW; intially at 4.75, then 4.25, finally sold out one year later at 2.55 ($3k loss)
RHT - bought at 11.5c and still holding (now at 1.7c and worth the princely sum of ~$300). ($1.8K loss)

But I have learnt, a lot.

Still in 2 minds about holding and forgetting; one that I will struggle with for a lot longer.

anserine · 29 June 2007

mine would be ERG, I bought them for 45cents and then i went overseas for 4 yrs, the stock went to 20 dollars. I held out being lazy as i did not want 2 ring australia to sell.
I ended up losing most of the shares in the consolidations recently and a value of stock went from around 40k down to now 300 dollars,
I travel around the world on these shares so they did me well but could had been alot better.
never again will i be lazy

What is the longest you've held a losing stock?

cuttlefish

Holdon

Rob_ee

Spaghetti

achan168

questionall_42

anserine

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