RE: FFS!9 Jul 2020 12:29
@Rox - good sentiment!
Skip to the end for a (long) summary if you don't want a load of waffle
I'm new to all this - had a lump sum from a house sale and chose not to purchase a buy/rent and try and earn something on the money another way. My mindset was ~ 5% annual return and I'd be pretty happy long term.
Made a LOT of mistakes on my first purchases - got in too high and had to sit and watch prices tumble - from 10GBP down to ~ 3GBP all in all. (Initial SP had already dropped from 19 down to 10 when I got in!). It was soul destroying to watch - the only saving grace was that the initial purchase amount was relatively small.
Anyway, I learnt a lesson there and over the next few months managed to get the average down to ~4.20 and I'm currently sat at 70% profit (it's been well over 100% in the highs of early June) - I could have sold out but kept the money in hoping for longer term rewards.
With AML, I toyed with getting in when the SP was in the 30's but decided to go elsewhere instead - hoping for a "quick buck". That never really materialised and by the time I came back to AML we were in the 60's so decided to get in - price went up so I stupidly increase holding - ended up with an average in the 70s. Then it went south and we're sat at 45. Bugger. After some work, I've pulled the average here down to ~ 58p - hopefully get it a little lower but we'll see.
I've made stupid mistakes elsewhere too - jumping on the wagon at the wrong time and having to figure ways out - either cutting losses or buying the average down on dips.
So what have I learnt in all this?
Patience.
Don't try and buy at the bottom and sell at the top.
Don't try and buy when everyone else is.
I'm down % wise a lot on some investments and up % wise on a few. I'm a lot more undstanding that unless you're lucky (or skilled) quick bucks are rare. Multibaggers are rare and prices can go up just as easily as they can go down.
I think a lot of people are sat at home bored and have a bit of spare cash (like me to be honest).
They're after a quick buck and aren't willing to wait. As soon as the SP drops a little they sell out and go somewhere else. I'm not saying I've not been guilty of that mindset but I'm working away from it.
I have cash in a number of places, split over various funds and also holdings in a number of companies. To me, I feel like there's a good balance between high, medium and low risk. Some holdings will work out and others may not.
As for AML, I'm working on getting my average down. I believe this is good company with potential to go places. I'll likely reduce my exposure a little once I'm back even to increase cash but still here for the long term. If nothing else, to in my head "do my part" in keeping the roaring Astons flying down Mulsanne....
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