RE:RE:RE:How much did you lose exactly on this name?A big part of what went on here was what's called ''peer group effect''. This isn't a first and won't be a last either because it's human nature to agree with people who share a similar opinion as we do. This goes for every social context. Whenever someone oppose your opinion, or specifically your stock thesis, it's easy to take it badly. Our decision to hold the stock of course is reinforced by others sharing the same situation. It makes for a dangerous and very biased way of investing. Being aware of those ''mental shortcuts'' is more important than ever in the 21th century markets. For anyone who's willing to make this a learning experience, as it should be however bitter it is, I recommend two books which I think would make great learning material.
David Dreman: Contrarian Investing- The Psychological Edge ( discusses behavioral economics, how psychology is an underestimated power in making investing decisions, how it has been destructive of wealth in basically every major financial crisis, and how to guard against it ).
Mark Spitznagel: The Dao of Capital ( this one is a bit technical but good, especially to get a grasp of how hedging is a crucial part of an investment strategy nowadays)
Bobsterr wrote: Thank you for writing and sharing your lessons learned. Yes this trade was a bad experience, but I think it helps to talk and write about it, vent your frustration, and share with others, knowing you are not the only one. I would print and tape it on my screen as a reminder before purchasing a stock because your message has very important underlying points that investors take for granted. Lastly, making a mistake is not pathetic and stupid. It is repeating the same mistake that is.
InsiderTrader wrote: Bobsterr wrote: My condolescences for everyone who lost money, time, and sweat on this. Just curious to know what you plan to do with your portfolio after this. From some of the messages I read, some of you may have lost six figures. My question also is what made you accumulate such a huge position in such a controversial stock without considering the potential losses? Because this seems to happen again and again, the message board is the same for Athabasta Oil, Posiden Concepts, AutoCanada, Avigilon, and that Canadian Nigeria energy company whose name I forgot.
lost $58000 and wiped out my gains for 2015 and I didn't consider paper losses real losses.. hopes of a buyout kept me in and I kept averaging down as new lows established and thought bottom was in... I didn't think I guess that was the point and certainly didn't want to think of losses, greed was more powerful than fear I guess ... didn't know the CEO or even look at the financials, only listened to the bulls as the shorts were just a manipulating gang who were paid to post ... just typing this I now realize how pathetic and stupid this sounds in hindsight ... What did I learn? I learned that if a stock has a high short interest in it, just to stay away from it .... Doesn't matter if they are right or wrong, I am just going to avoid it in the future.... regardless of how cheap it looks, it may be cheap for a reason.