I won't look at the stock market anymore

Fredledingue · #1 (**permalink**) 06-28-08, 06:24 PM

I'm sick and broke.

Not that I lost so much money. After all, I hold not-so-bad positions but my buying actions have been too early and I lose on everything except PKD (last time I checked). So I'll wait.
I don't think it's good psychologicaly to see my portfolio lose x% everyday. Better forget about it for a while.
I wish I could forget until the existance of my protfolio and come back in one year when things are up, but I know it's impossible.
Maybe in a last desperate move, I'll throw the remnant of my cash (about 7% of portfolio) into the most losing position. But I know that would be stupid.

Ray The Money Man · #2 (**permalink**) 06-29-08, 01:28 AM

Hey Fred,

I have felt that way before, but don't do it! What are your positions? You would be better off selling everything and moving into some of the almost guaranteed long term winners that are on sell right now. Especially if you are going to sit tight through this storm. Put it in PEP, KO, BRK.B, PG, BUCY, etc. But don't just sit on a bunch of speculative names.

Airelon · #3 (**permalink**) 06-29-08, 10:12 AM

I would agree that speculative names have gotten me in more trouble that I knew how to handle when I first started out. Sometimes, it was smaller - yet still recognizable names too.

For times such as these? Entire portfolio's based on DRIP investing are a thing of beauty. Look at my worst position for example. BAC. Friday, I was given, in effect - more shares for free at $24. It's an investment with a classic risk / reward ratio. $24? With the possibility of them getting their crap cleaned up in 6 years and seeing $60.00 again? That's a classic risk / reward scenario. And the entire time? I'm garnering more and more shares through DRIP; so that when we see $60.00 again, I'm sitting on a pile of shares I wouldn't otherwise have - if it wasn't for DRIP.

When it comes to investing (not trading) Everything is about that risk / reward ratio, and keeping investing with companies based on the macroeconomic principle of wealth creation.

When it comes to trading? That's simply about providing and identifying good, liquid situation. It has nothing to do with the long term prospects of the company. Heck, the other day had a short on BAC (I have multiple accounts so this is possilbe, and keep my investing away from my trading). That wasn't about what I thought about BAC's long term prospects (investing). It was about where I saw the liquid situation going of that 30 minutes (trading).

Take heart Fred. Many of us have been there. For myself, it was a very, very expensive learning experience.

Fredledingue · #4 (**permalink**) 06-29-08, 06:22 PM

Hum, yes, Thanks.
As I said my positions are not that bad, just some 25% in the red. I'm broke in the sens that I have no cash left for investing. And without cash I don't see the point in looking at the market everyday.

I don't consider my portfolio speculative (albeit not conservative), I have been fully aware of the risk/reward ration and I'm confident for the long term.
Like Airelon, I'm compensated with some high yield dividends.
But at the moment I feel bad because it's been 9 months that we are in this sh*t and all this gloom-and-doom in the market start to grow old.
Long term looks more and more VERY long term.

I finaly looked at friday's prices and, ho my!...
You know the too famous image of the desperate wall street trader holding his head in his hands, after a close in deep red...
Well, it was me for a few seconds, but right after that I couldn't resist to throw my last money into my two fav's: ACAS and HPT. The orders are pending for monday morning, normaly they should be executed.

It doesn't mean I won't come here for a talk, but my portfolio activity will stops here.

peterfin · #5 (**permalink**) 07-15-08, 10:41 AM

At the moment it is bad times for many of us. I gues you just have to live with the current situation and try to live through it. For me it is also a pain to look at the stockmarkets every day!

Airelon · #6 (**permalink**) 07-15-08, 11:01 AM

Either that, or save that cash for when the bottom finally develops ...

Cash is a position too, and remember - bottoms are a process, not an event.

England · #7 (**permalink**) 07-15-08, 11:56 AM

In times like these, I tend to just forget about the market altogether. Considering the mere fact that I put in small investments, I don't really worry about losing money. For example, airlines. Wow...I'm down to $8.02 on Delta. Damn oil. Yes it sucks, but I hve no worries in losing money. I'm due for another huge Investment risk. I think TGT will be my next $1000 drop, depending on how far down it goes, unless some one has a better company.