RE:RE:RE:RE:How much did you lose exactly on this name?Got out a while back, but I am just reading tonight and thought I wanted to chime in on this. I have to say that CNInvesting is an exceptionally caring poster and Lattice you are a good research-based poster. One thing I remember reading (from I think fdfd but I am not sure) is that shorts do 20 (?) times the research that longs do and I actually think that shows. I also don't believe that shorts will chose a company with strong fundamentals to short. It just doesn't make any sense and since January when the talk of buyouts happened that's one thing that I felt was never a concern for the shorts. They seemed to be confident that no one was going to look at taking out CXR. I find it unfair, however, that hedge funds that short stocks have access to information such as forensic reports that require expensive subscriptions and the average investor does not have access to this. The shorts are also very guarded with their information, just a feeling, maybe it has to do with the 140 character limitation on twitter I don't know. Many who cut the shorts down on this board don't actually offer any argument to what they are saying, they just go on about "how much are you paid" "get some sleep" "you post 24/7" "sounds like you are getting scared" "who hired you." "you better cover" and on and on. No one actually challenged what they were saying. I remember seeing a post that said "this will be 45 by the end of the week" and I definitely felt the FEAR OF MISSING OUT bought that day and the second I bought I felt I had made a mistake (and as it turned out I did, but would prefer not to say how much I lost). CN, thank you for your book recommendations and I am seeing if I can get my hands on them because dude or gal, you are good in my books! Good luck everyone.
CNInvesting wrote: 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.