OrangeGoblin16 Nov 2016 22:44
Thanks for the post. Some interesting comments.
I think that regarding shorting, some of us here were surprised more than anything else that GBG would be subject to an attack, call us naive if you want. It has always seemingly been off the radar to most and therefore low down on any list. Yes, we have become concerned but that shouldn't have been a reason for you to jump ship. However, I recognise and respect your decision(s).
"Tactically averaging down". I have never been an advocate of averaging down, preferring to invest into strength on a rising share price, fundamentals and reading RNSs etc., rather what would appear to me to invest into weakness on a falling share price. That has always seemed very risky. If we know precisely what we are doing, then, ok, at a stretch. I see exactly where you are coming from on this relating to GBG but it takes a lot of time and effort following a share very closely and is akin to trading rather than investing imo. I just haven't the time nor the desire to invest so much more time than I already do.
Too often I have seen "investors" averaging down, but more often they are throwing good money after bad. Of course, if we are extremely careful and do our research we should be able to sift the good from the bad and the ugly. Also averaging down can be on the back of getting emotionally attached to a company. So many fall in love with their holdings and just can't or don't want to believe what is happening when the share starts falling. They read RNSs with rose tinted glasses and then get abusive when someone puts forward a contrasting opinion. But of course, I recognise, this is not what you are suggesting, it is just me airing an old chestnut.
One of the characteristics of a successful investor is knowing when to call it a day, knowing when we have had enough of a share and moving on. That can mean taking our profit or indeed knowing when to take a loss, before it gets even bigger. So well done; selling is always the hardest decision to make.
OG - regarding stop and limit orders. I make mistakes, as we all do and should have known better, maybe I was tired, not concentrating. I got it wrong. Some times some of the best lessons learnt are by making mistakes; sometimes those mistakes are costly. I don't think I need to open a demo account, not sure how to do that anyway unless LSE allow you to do so, but thanks for suggesting it. Perhaps more reading, perhaps earlier nights, perhaps a good glass of Jura would help.
I wish you all the best
CM
Sign In
Follow the stocks
