Short Term Trading (Australia Day) Weekend Lounge: 25-28 Jan, page-41

Biggest mistake - Averaging down (in a BIG way) just because a large institution were buying. I figured their collective analysts and millions of dollars had a better idea of the macro picture than I did.  They didn't and it turned out that both the big Insto and myself grossly underestimated risk.

The end result for me was trapped capital, still slowly exiting. The big swinger is still there but that's the benefit of having piles of other peoples money to play with, makes it easier to either cut losses, create a market to sell into or wait it out.

Lesson - Before averaging down, completely reassess the position and treat it like a new prospect regardless of insto buying. If it doesn't stack up, accept the loss and move on.

Two more from the 80's, an era that to me still epitomises Australian life - the good, the bad and the ugly.





The Celibate Rifles social commentary reminds me a lot of where we're at currently, recent wealth generated from a property boom (Syd/Melb), High-end SUV's, private schools, plenty of extravagance, technology being touted as a means to reduce hours and make more money, everyone is a foodie, every regional town has a bearded barista and Korean BBQ.