Guy rode a $3000 investment down to 9 cents?
I've done it, several times <g>. It happens when you mark to market every day, and the fundamentals suggest the company will survive and prosper. Sometimes they do...
Rode CHK from 5 to 1, then back to 9. Risk adjusted, thats a poor trade, but the company is probably worth more than 9. I sold it anyway. ROYL from 4 to 2 1/4, then back to 6. Those are the survivors in the NatGas sector. COHO didn't make it. Rode it to near enough zero that the commision was worth more than the sale proceeds.
I've done the same with Shaman in biotech, RYO and BCMD in gold, APM in the DDX sector. There are probably others I don't remember off hand.
Those go to zero losses don't kill you if you keep diversified. Of course, I'm not a strong believer in stop losses, not really a day trader, but I do take losses now and then. I'm hoping with practice I'll get better at it.
Tomorrow I'll decided against taking losses in AMAT. <g>
Hopefully, my canadian neighbors will make enough off their shorts to afford some more Patron, and maybe even some Glen Morangie. <g> Some good olive oil, balsamic vinegar, and fine coffee. Meanwhile, I'll stick with my Miller and Canadian mist until my AMAT recovers. Then I'll join you for a toast |
