Shareholders Under The Cosh29 Sep 2020 23:16
I understand that there’re a lot of shareholders on this board who are under an immense amount of stress right now. Some are long term investors, others were short term traders who got caught with their pants down and have now become long term investors.
It’s never nice to be invested in a share in free fall. It happens to everyone if you stay in markets long enough. I understand the psychology of a failed trade - do you sell at a hefty loss or hold and hope it’ll go back up?
Most hold and hope of course
They can’t stomach pressing the sell button and realizing what can sometimes be a devastating loss.
Professionals tend to sell out in companies that end up in bankruptcy whereas retail traders tend to go down with the ship.
Unfortunately Rolls is one of those investments. A very popular share with retail investors and one that’s lost about 80 percent of its value since the killer virus appeared.
Never a nice place to be
But I’m afraid the damage has been done.
It’s highly unlikely you’ll ever recoup your losses
And if you do you’re probably looking at many years
And as with people, companies too have lifespans.
Remember Woolworths?
And as we saw with Debenhams, shareholders can get wiped out and companies can go on trading
A rights issue would be my preferred option if I held Rolls - far less damaging than nationalization.
If it’s any consolation I’ve lost money on shares too - big money sometimes. But I know how to deal with losses, and I limit exposure to any one company - unlike many on here. I have disciplines that protect me from catastrophe.
No amount of denial is going to change things. The die have been cast and for anyone in Rolls it’s a losing roll
And now you have to deal with the consequences..
A valuable parable in share trading by
Toff
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