SDL (ASX) In for the long run

Bthotcop

Almost every successful trader or investor has story (or many) like this. Including myself. Tripling my capital prior to GFC then lost 75% shortly thereafter. The key is to figure out what the key lessons are so you don't repeat the same mistakes over. My lessons were not to wear rose coloured glasses for any stock. Detach any emotional connection and set 3 levels of stop loss before I enter with the last stop being "Must exit" if reached. Never buy a downtrend no matter how cheap it looks wait for support to enter first. And realise that money is best sitting in cash than holding thru a market down turn (or stock downtrend for that matter) where almost every stock will fall. I held SDL several times over the years made money twice burnt three times. Have not touched since.

I was caught and held some stocks which had quality stories and management thru the GFC and they eventually recovered. But it was long haul at times stressful. Gave me plenty of think time and change things. Now don't bother investing unless the story is top shelf and the stock or market has bottomed. Im 95% cash right now and busy searching for quality and waiting for market to bottom. Every good trader investor has been where your and the survivors/winners learn from the pain ...the sharper the pain the more poignant the lesson learnt. Figure out what mistakes you have made and invent some rules to avoid and stick to them soon you'll have set for every occasion.( Ie I never buy a spike but always wait for the retrace and support as there is a low prob of success with spikes). I never borrow to invest and avoid having all capital tied to one stock for too long as other opportunities are being missed and there are lots of those. See the hall of fame/leader boards at the start of the HC short term thread ...plenty money being made there by high ranking posters on a weekly basis. You have done the hard yards now use lessons learnt and start making money!!

Will SDL make a profitable mine in the future probably ...but if you going to wait till then you need to be prepared for a very bumpy ride as you have experienced thus far there will be more turbulence with no doubt... Personally I have a max investment timeframe of 18 mths but I like to be in and out in 3-4 months so buy a month of two before big announcements are expected sell after the rally on expectation or the news itself... A normal market will correct every 3-4 months on average so opportunity to reenter cheaper is always around the corner. I you miss an opportunity .. no matter then next one is just around the corner.

All is IMHO Only

PS: My capital is now well above pre GFC levels...(Not bragging just pointing out it can be done with some rules & discipline)