Obviously I don't understand what is going on in the market right now. I have sold off my positions in dividend yielding companies because the dividends they would pay out simply does not keep pace with the amount of money I was losing daily from the drop in stock prices.
I've already lost about 50% of what I had in total in the market after a 25% drop in prices. I now have first hand experience in understanding what it is like to lose a good chunk of cash in the market as a result of leveraging. Relying on my gut and decent book prices of a stock wasn't sufficient to prevent myself from losing big time, as it seems that macro economic factors in the market is brining everything down.
I sold my positions today because I am believe that the market will continue to deteriorate and will admit that I made a huge mistake on trying to catch a local bounce that never did happen. For the time being, I will scale back and get out of my positions in the market over the course of the next while. I am expecting bad 3rd quarter reports and probably worse winter sales.
I will be spending the coming week/month doing research on understanding what went wrong and developing a better prediction of the future.
1 comment:
Justin...definitely feel your pain. So does Iceland, Pakistan, Turkey, Argentina and some other nations. I never liked leverage anyways =( At least the yen is appreciating ...
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