QUOTE(baqueen @ Sep 23 2011, 12:23 PM)
from my experience, i regretted for
too optimistic of bounce back.
i m still searching for my trading strategy but i m glad i did my above mentioned decision, in fact, i regretted doing it a bit too late ... i should have been able to save more from going down the drain, due to "
false hope", i pay for some lesson.
I believe almost everyone of us did being optimistic/having hope/expectation on share price rebound. I did put alot of expectation on one of my holdings before since its fundamental is not bad and it did pay divvi.
When it drops 5%, i told myself don't worry since the fundamental is ok.
Then it drops 10%, i told myself the fundamental is still there and what goes down will bounce back.
And it continue to drop 15%, i told myself again nothing to worry since the fundamental is there and the company director is acquiring the shares himself.
Finally it comes to 21% loss, then i realize that i have to preserve my capital since i dont have extra capital on hand. Besides, i(personally) don't see a chance that it will rebound in a short period. So i made a decision to cash out to preserve my capital. If i have extra cash, i dont mind averaging down.
At last we will tell ourselves that luckily i have CL earlier, else it will be another xx% loss(if it drops).
Some may have a thought that it will be unfortunate if the price goes up after i sold the shares. But i believe what sifus/sijies said before: "
there will be never too late. In addition, there is not only one counter in the market".
Above is just my personal experience. I hope it'll be no offence to everyone.
This post has been edited by ken_ng: Sep 23 2011, 03:04 PM