lessons learnt followed by rambling rant, page-19

Very ugly. Such an apt word. It sounds just like the meaning of the word. Here is a bit more rambling along happycat's lines.

We saw almost the same on PIR a few weeks back, delays on expected announcements, then the results were nothing like those expected and a big selldown over a few days. At some stage, BYR will be oversold and come back a bit, but I don't like catching falling knives. No tattoos on my head, but my trading plan is in the front of my folder.

They include:
You should have acted yesterday (thanks lastlaugh for this one)
Never ever average down. (I do average up, BUY STOCKS TRENDING UP)
Protect Capital (use some stops, these are looser on the volatiles)
Never recommend stocks to friends. This is critical to friendships and family, if the stock tanks. People do ask for recommendations, I then will give half a dozen and include % of portfolio (not dollars) I have invested, what stoploss I have in and when I am going to sell. Or just discuss a sector that is on the radar.

Director buying, I often look at this but also look at how much they tip in, was it just an option conversion, or was it an open market buy.

Stoplosses, someone before me on HC wrote along the lines, you never know exactly why your stoploss has been hit, is it inside information or just a general market selldown. Sometimes, your stop is hit and the stock bounces back, but usually it keeps tanking down. A few times, have been stopped out and been disappointed with the end result, but most times the stoploss has worked a treat.

Look towards the next trade/stock. Make sure you are stopped out to trade/buy another day. There are always more stocks out there to buy.