Sorry to hear that....Ok just some pointers
The sharemarket doesn't care for your age.
Money is money, it will take from a 23 year old just as fast as from a 90 year old.
It doesnt care if you have $200, $20,000 or $20m
From 20k up to 20k down means you have no plan and no idea what you are doing.
Please do yourself a favour, before you buy any stock get yourself a plan of action.
Before you buy you need to set in stone 3 things:
My buy in price is X
My sell price is to be X
My sell at a loss price no questions asked is X
You can not make money on the sharemarket unless you limit losses.
Making money is easier if you learn to reduce losses to a minimum.
Example:
You buy at say 10c.
You set a stop loss at 9c.
Stock hits 9c, you have just limited your loss.
Or:
Stock goes to 12, then 15c, and 20c.
Each time you increase your stoploss (lookup trailing stop loss on internet)
At some point you should then have a plan also to sell principle and ride the profit, people call this freecarry, you are only then risking your profit, not own principle funds.
Also learn when to buy.
Timing is important.
Charts can tell you a lot.
I never thoughts charts meant much, but over time I've learnt they are possibly, actually they are the most important thing, along with
momentum of money.
Momentum of money both buying and selling, don't go against the grain, just follow the money. Volume of money always wins the swing both up and down.
The AVZ chart below spells it out fairy easily, buy on the left rise and sell and keep selling on the right hand drop.
Unless that chart below turns up there is no reason to buy, that is just logical isn't it?
Id dare say you bought on the drop somewhere?
You brought against the market tide, that's very dangerous.
You will lose every time.
Yes stocks can look underpriced, but if the chart is not on a rise, or turned on volume (money momentum) just wait until it is. Better to get in later at the right time then early at the wrong time.
Some say try pick the bottom, even I try this with experience and it's not easy.
New chinese proverb:
Picking bottoms leaves you with smelly fingers
Especially hyped non income producing stocks, when no income producing, they are more or less trading stocks. All are trying to beat you, so don't assume you know best, follow the money, large buying is good time to buy, large selling good time to sell.
Think of traders as sheep in a paddock.
You want to be first 15% of sheep to the feed trough, eat the feed, yum yum, then the next 70% of sheep come in for a feed, its harder to get fed, there is a lineup, time decay, then the last 15%, they have waited ages for a feed, the first 15% are already well fed and resting outside the gate, majority are fighting each other to get a feed, and by the time you do, along with majority of the sheep, and the last 15% sheep, the initial sheep have left the party.
Even say today, right now, from say the day after your boss sold, 08/06 until 26/06, SP volume of trade buy/sell has dropped 80% and SP has dropped further 20%.
So even on diminishing daily volume, the SP is dropping further, no great sign
These are the last 15% of sheep getting out all too late.
Buy when volume is increasing and SP increasing.
It may turn again, and when it does it may be a buy.
Until then, it's not IMO.
Good luck hope you make it back.
