should i exit

Oraclefusions

Junior member
47 3
I made a mistake a month ago and bought shares during a strong downtrend. I am not at a loss as to what should I do? Should I sell and come out or wait for reversal which I am waiting but not happeningI bought this symbol at 156 and its current price is hovering around 110. How can i predict it will ever come back?
Perhaps I will come out and accept the loss and use the raminig money to trade others else even if it comes back to 156, its goona take a time. the fact is that it came down from 156 sharply and it is known to be very volatile.I have marked with circle where I bought it.
One piece of info., The day I bought this share, I missed one findamental news (which was announced the prev day) that the Chairman of this company dies and till date, there is no announcment.
It is an an insurance company whose parent is ACE Group.
Cheers
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BeginnerJoe

Senior member
3,329 350
Well, they have a whole bunch of people trapped. They will trap some more when they engineer a quick bounce at some point. The stock isn't going to recover until most of those trapped cough up what they have bitten into, at a significant loss. It's anyone's guess how much lower they will move it in order to shoot the fishes in the barrel.

If the company's business hasn't deteriorated, the stock will recover. If you know for certain there is no change to the company's business environment, you can pretend to be warren buffet and hold it for life. Loss taking is best done early. But you are past that point.
 

Oraclefusions

Junior member
47 3
Well, they have a whole bunch of people trapped. They will trap some more when they engineer a quick bounce at some point. The stock isn't going to recover until most of those trapped cough up what they have bitten into, at a significant loss. It's anyone's guess how much lower they will move it in order to shoot the fishes in the barrel.

If the company's business hasn't deteriorated, the stock will recover. If you know for certain there is no change to the company's business environment, you can pretend to be warren buffet and hold it for life. Loss taking is best done early. But you are past that point.

What you said makes sense, and there is no change in the companys biz and my guess is the same, stock is hihly manipulated and it seems that they are doing as you said.
By the way there is a curve up at dec 15 closing as you seen (but i expect further decline, it might be a very small pull back).
Just to understand something here, I just daw Fibonacci Fans and also notices a bullish harami(notice last two candles), would this means it will bounce back /retrace back until it hits first resistance at 61.8% which is value of 128? How reliable is this fib fans?
15hn5eh.png

cheers
 

Trader333

Moderator
8,655 981
In trading it is quite simple, if the trade is not working then exit immediately. To do anything else is pinned on hope and that is the way to ruin. Learn from the mistake, don't repeat it and most important of all is not to look back. The reason is that if you exit and the trade then would have made a profit or reduced your loss then it will give you what is called "negative reinforcement" which in time will cause you to consistently lose.
 

BeginnerJoe

Senior member
3,329 350
there is a curve up at dec 15

No, that's not the bounce. It's yet to come. It will be a size such that it will induce you to pile in some more to average down. Then they will hold you hostage for a couple of years at least if you decide to tough it out.
 

tradewell12

Newbie
2 0
buying stocks is owning a part of a business. you wouldn't start your own business, without being completely knowledgeable would you?

how knowledgeable do you feel about what this company does and how knowledgeable are you about the stock market, and entire financial market as a whole? - if you read enough books about stocks and finance, you'll know the answer yourself.
 

Oraclefusions

Junior member
47 3
Thanks for the replies. One suggests to exit and never repeat the same mistake and move on. Another suggests to keep it as long as it takes because it will bounce back, and lastly one recommend to know more about the company etc.
TASI is a volatile market, and I was speakin to one of the person who works in that company and he said that the company is unaffcted by the falling price because, the company went ipo 3 years back and got the money needed, it is the investors who are now playing such that they made such high and low swings in short periods , this re enforces the comments made by beginnerJoe that this is a planned price down operation. I have forget about the money and hope it will bounce back maybe in march, hence am not selling.
Cheers
 

Oraclefusions

Junior member
47 3
No, that's not the bounce. It's yet to come. It will be a size such that it will induce you to pile in some more to average down. Then they will hold you hostage for a couple of years at least if you decide to tough it out.
Trying to pm you, says I have to have 15 posts. Would you pm me instead so I can reply Please?
 

wackypete2

Legendary member
10,229 2,055
Well I appreciate your reply. I am here to learn. Everyone makes mistakes.
Your statement is rather rude but I guess its me who gave you this right to say that.
Cheers

It wasn't meant to be rude, but you really need to learn more before you continue to try trading. Exit your trade and save what money you have left from it until you understand better how the markets work.

Peter
 
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pboyles

Legendary member
8,072 1,303
Trying to pm you, says I have to have 15 posts. Would you pm me instead so I can reply Please?

Get out of the trade and don't trade again until you know what you're doing. It seems like you are only listening to what you want to hear. If you're seeking advice from Beginner Joe then you're in trouble.
 

Lightning McQueen

Moderator
4,935 788
All but one person is telling you to close the trade. Hope isn't a strategy.

i was going to join the not sell yet brigade, i know that's just me and joe at the moment. last night i nearly made a post, with chart, to make a point that it isn't over quite yet. chart was lost in the making :( i will endeavor to find the lost chart and to make a case that selling right now is mistaken advice.

the op is in a really deep hole already, the advice to sell would have been right and prudent earlier in the stocks initial fall, but isn't really valid now. there is very strong support not far from current prices, op has not much more to lose at all to see if the stock can hold support and recover. the stock is still in a long term uptrend that is as yet unbroken, though i concede it is on the edge of fail, it will not cost the op much more than he already has lost to find out. has anybody actually looked?
 

brewski1984

Senior member
2,073 356
I haven't actually looked to be honest, I assumed maybe wrongly that as the OP didn't know what to do he is trading without a plan.
 
 
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