Pyrot - IMO many including myself got sucked into the hold no matter what happens mentality. But I have long since recognized that it is a hope driven fallacy that will lose money every time!
It is better to recognize a small loss and act quickly to minimize it by selling as soon as the stock moves down from our expected range. Failing that, assuming we have diversified to minimize risk it is even better to sell at a moderate loss rather than continue to hold IMO
In short if you have made a mistake going LT Long and SP is going the wrong way get out of that position! If you remain interested in the company, trade the movements that you can predict but don't set any position in stone IMO. Learn to trade both long and short if you are that way inclined, or wait patiently and watch for the ST rallies but don't forget to take profit!
I was lucky this last trade I was in at 15.5c (based on my charts all saying buy ST) and sold at 21.5c that I thought was a conservative enough target. As it turned out that was the intra-day high with any volume to support it (2 days ago) and I admit I was very lucky to get it so right before the CR and retrace.
Before I woke up to the fallacy of holding LT in a LT downtrend I lost 50% of my LYC value, since then I have traded twice once for a gain of 2.5% and once for a gain of 38%. By also doubling the $ amount I have used for these trades I am now up about 25% in dollar terms with my LYC trades. It could have been much more if I wasn't just plain stupid initially.
LYC Price at posting:
17.0¢ Sentiment: None Disclosure: Not Held
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