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I was watching Bloomberg and the market started selling off when Macron commented on a conversation that he had just had with Putting - apparently Putin told him things "had only just got started" and Macron has said things are going to get a lost worse (not sure if he was repeating what Putin had said to him). Anyway, panic is setting in and considering there's supposed to be peace talks later today, hopefully sense will prevail and we will see a nice bounce in the markets tomorrow. Obviously all bets are off if the peace talks don't go well.
Scallop - the large drops in the share price is because there's not that many shares on issue so that means that there's more volatility - don't think it's ever been anything to do with AIM myself. At least when the trend changes you'll see the same sort of price action in reverse.
Sorry for the length of the last post - just trying to highlight what can go wrong with averaging down - a more recent example of why it's a bad idea is SNG - if you read some of the comments on that chat forum from the day the share price dropped significantly it's heart breaking reading some of the comments - similarly now with some of the Russian oil companies like EVRAZ and FXPO - the good thing with those is that because of the extreme volatility you could actually trade your way out of a negative position.
Hope you find these comments helpful.
Ubik - if you want to develop and learn get yourself a few books on investing/trading - Jesse Livermore was a world famous investor in the 1920's and whilst technology has changed over the last century, the principles of trading haven't. The other books I would look into are Mark Miniverni's - he has 3 books I think it is that have been published and the snippets that I've read on his twitter account about not averaging down, being able to accept losses and things like that are what I've learned over the years for myself.
If I'm being honest, I would say there is no straightforward answer to your question - I can give you some examples of why it's a bad idea though - I started trading during the financial crisis - I had saved into various share save schemes with the Bank that I was employed in and had done very well out of them over something like 14 years that I had been investing in them. The credit crunch hit, and as with other crisis like the 9/11 attacks, the dot com bubble and such like, it initially seemed that the credit crunch was only going to be a short term thing so I thought I would take advantage of the low share prices of the Bank at the time with a view to making a bit of money - the credit crunch turned out to be a full blown financial crisis and I was "averaging down" from £2 odd a share to where they eventually dropped down to 10p and the risk of them going bust was very high - that was my introduction to "trading" - the Bank's share prices have never really recovered 14 years on.
There's numerous companies that I could quote - Tullow Oil went from £6 odd to around 3p and I know of someone that was averaging down like crazy thinking they were getting a bargain at £2 odd - wiped the person out, Lonmin - ended up going bust, Metro Bank - dropped from something like £30 to 80p, Ted were at £30 a few years ago and now barely £1 - so if you keep adding thinking that the share price is going to turn around, all of a sudden your capital is tied up and you're sitting there waiting/watching/hoping that the share price recovers.
The biggest learning I have had is being able to accept a loss and using the same funds to buy back in at a lower price if that's the way the thing is going - risk management is so important and that's why I'm suggesting you get the books. You could also learn about technical investing/charting - I have tried to learn charting but I just can't get the hang of it so I just watch the trend on a daily basis - if a share price closes at the days high its an indication that it will go up the following morning, if it closes at the lowest point of the day the indication is that it will drop the following morning - learn to watch the range movements of the shares that you are in and do what other people do and trade the spikes and shakes - or as they are saying in the US these days "flip the rip, buy the dip".
Knowing what's going on globally is also a must - if the US sneeze, we get pneumonia.
I'm still learning but have been trading since 2008 - always a school day in the markets.
Scallop - just don't go adding any more funds at the moment - "averaging down" isn't the best when the markets are like this - wait to see signs of a recovery. Have a look at that guys twitter feed - it's really helpful and one of the things he says is don't average down.
No problem - this game isn't easy - one thing's for sure, when the markets do turn it should be quite a fast recovery back up to £30 odd and onwards from there - I just have no idea how long it will be before things start to rebound.
Not a good day for holders today but I would say the market is taking the opportunity of driving the share price down even more on very low volume.
I think that the whole market is going to be in for a difficult time for a few months yet - not just because of Russia/Ukraine, but inflation, interest rates increasing, consumer confidence dropping, supply chain issues and anything else you want to throw into the mix - I thought once we were over covid things would improve but watching Bloomberg and various analysts comments they are all saying markets are in for a difficult time this year.
There's a professional market trader that I follow on twitter - Mark Miniverni - he is a seasoned investor/trader who has published a few books but sometimes he comes out with some really useful/helpful nuggets on his twitter feed - one of those was something like 80% of companies see their share price fall 50% from their previous highs, and 50% of companies see their share price fall 80% from their previous highs (or words to that effect) - as ASOS is more than 50% off its highs, there's a risk that it could be one of those that fall 80% which would bring the share price to £10.40 - if you look at BOO they've fallen something like 80% from their highs.
I'm not a "deramper" - if you look at what I was saying back in September/October last year when the share price was £32 that the share price was in a downtrend and wait for it to turn, my view is still the same - its not the company that's the issue, its the market.
Owls I was merely commenting that FXPO are like many other shares prices in that they are a lot lower than they were last year - different reasons for different sectors but nonetheless it has been a difficult period but hopefully light will be seen at the end of the tunnel soon - not tomorrow though as it looks like the US is selling off today so will probably impact the UK market in the morning.
But even with their 31% increase in the last 3 weeks, they're 40% down from where they were last Summer. Hope you're right about the Russia/Ukraine situation.
And I left one other thing off that list - a potential war breaking out with Russia/Ukraine - I'm surprised the market hasn't started selling off even more because of the politics going on there at the moment.
If you look around at the wider market a lot of shares are suffering at the moment - ASC is down from £52 this time last year to £20 now, BOO, CARD, CINE, TED, MKS - and the list could go on - are all way off their previous highs - think its all to do with the uncertainty around at the moment - inflation came out higher than forecast at 5.5% today, interest rates are going up, there's ongoing supply chain issues and of course covid is still around. Once all of these issues start working their way through I'm sure that OCDO will start moving forward/up as will many other company shares - it's just a difficult market at the moment.
Valueplay I've just got a cynical mind when it comes to the markets and the big players - suppose it comes from years of watching all the wrongdoings that go on.
Perhaps the drop was deliberate to allow big players in at a cheap price.
Now have OCDO as a buy so hopefully the bottom has now been hit.
Have got the share as "Stay Short" so there could be further to fall here. However, a chartist I follow has commented that the share price is in what he calls "the fear zone" which hasn't been evidenced since 2014 so could be a sign there's not much more to fall. I've sold on a spike this morning and will look to buy back in a bit cheaper later.
I can remember when there was a fire at the warehouse about 8 years ago when the share price crashed from around £70 to £17 that Libernum were very critical and were pricing the shares quite aggressively at around the £10 mark - wouldn't be surprised if they were shorting them and coming out with that way out figure to try to put people off.
ns 99 - no matter how hard you're trying here you're not going to get your cheaper buy in price - either put up or shut up!
for December out today and all positive - no impact because of supply chain issues so fingers crossed the £20 odd share price we saw last week was the bottom and that the share price can start its recovery now.
For the month of December out this morning - very positive and not affected by supply chain issues. Let's hope the £1.07 odd the other day was the bottom of the share price here and the downtrend can start its reverse.