endured huge loss on liponex

[msalmany]

Hello every1.

I am new to this forum, and hope to contribute regularly from now on. I am a university student studying engineering at waterloo, on.

I recently started trading stocks... (started with a capital of 9800 dollars)  I made a couple of hundered bucks but by the time my coop term was over and it was time to go back to school I had lost $3500. I have paid part of my tution and asked my dad for the rest. So i still have about 2100 dollars in stocks

Where did I lose all that 3500 bucks? well LIPONEX. I bought the stock when it started jumping and I bought it at 89cents. Now it is at 49 cents. I need the stock to go upto $1.25 to cover my loss using my current capital.

Do you guys think that it is possible? or should i just give up and buy maybe kinross or something?

any advice would be really helpful. tsx has treated me really bad so far, Just want to get even. Not even looking for profits.

Any advice?

[bryanmcn]

This is just my opinion but if your going to trade stocks then you should have a minimum of $50,000. Anything less could cause large drawdowns (such as you experienced) because you can't position size correctly. You must diversify, yet set the amount of shares that you hold at a reasonable number in correlation with the variation of the stocks movements.
IMHO

[msalmany]

bryanmcn, wud u recommend I sell my stocks? I mean like do you see this company going to a dollar anytime soon (4 - 6 months) I doubt it my my brain is playing games with me.

What should I do? I am sort of leaning towards just selling everything off and quiting stocks and just thinking that I never had thaat 3500 bucks. is that a decent approach or should I keep a hold on the 4500 shares i owen of lipones. (LPX)

[DCA]

One of the biggest investment mistakes is to refuse to accept a loss.

You have a loss.  Accept it.

Now take a look at the performance of any one of the portfolios for the last six months.  Multiple your current value in Liponex by this.

Six months from now which do you expect to be the higher number; the portfolio or your Liponex shares?

If you chose the portfolio then sell and buy into the portfolio.  Take a look at the virtual $5000 portfolio for how to do this.

My first investment was in Ballard.  I bought at $154 and refused to believe that it would keep going down, it just had to come back.  I still own my Ballard shares to remind me that the market does not do what I want.

d 

[bryanmcn]

Murphy's law says that if you sell today it will jump 50% tomorrow but If you hold it it will continue to drop. This was a bad trade. Take your lumps and live to trade another day. Don't trade with emotion. That's what the SSP system is about. Its a system. No emotion.
If you insist on trading then look for a better deal and keep your positions small. In your case ... VERY SMALL! Never allow yourself to lose this much ever again. Learn from this mistake. Consider it an investment in your stock trading education. That education will be wasted if you continue to do the same thing and expect a different result. The mistake you made (in my opinion) was too large a position for the size of your portfolio. Thats not trading ...thats gambling. Don't gamble. Trade with a proper size position so your risks are minimized.

[DCA]

It is very important to keep your emotions out of it.  A month ago I decieded to sell a third of my holdings in WEW because I thought it was a little overvalued.


Take a look at a chart and you will see the pain I felt on the 25K shares I did not sell!  All because I like the stock.

The stock market can be wilder than any roller coaster, but it is not cool to be screaming at the top of your lungs while the ride is in motion.  Please also keep all cash required to buy food and pay rent/mortgage firmly in one's bank account at all times.

D

[LuckyWon]

The stock market can be wilder than any roller coaster, but it is not cool to be screaming at the top of your lungs while the ride is in motion. 
D

Well said DCA!!  I am going to keep this as one of my motivational quotes, hope you don't mind.

LW

[StockETF]

IMO, when you trade stock, you must place stop loss in order to avoid big losses.

[Super Stock Picker]

Hello StockETF,

In that particular case of Liponex, that would have not help at all.
The stock has dropped 80% in a single day between the last close and the open because of the release of a bad news about their drug tests.

The stop would not have been trigged efficiently because of the huge gap there.

[bryanmcn]

While its true that some stops don't protect against gaps, mine did. I bought on March 1 at 3.01 and placed a stop at 2.29. It was triggered on March 8th, the day before the gap. Although I lost money, the stop saved me several thousand dollars in greater losses.

[hotstuff]

Hello every1.

I am new to this forum, and hope to contribute regularly from now on. I am a university student studying engineering at waterloo, on.

I recently started trading stocks... (started with a capital of 9800 dollars)  I made a couple of hundered bucks but by the time my coop term was over and it was time to go back to school I had lost $3500. I have paid part of my tution and asked my dad for the rest. So i still have about 2100 dollars in stocks

Where did I lose all that 3500 bucks? well LIPONEX. I bought the stock when it started jumping and I bought it at 89cents. Now it is at 49 cents. I need the stock to go upto $1.25 to cover my loss using my current capital.

Do you guys think that it is possible? or should i just give up and buy maybe kinross or something?

any advice would be really helpful. tsx has treated me really bad so far, Just want to get even. Not even looking for profits.

Any advice?

hey i'm new too, but check out this stock ASC-RT.TO  it should be a good pick, and if u decide to invest into this one i would say around $1000-$3000 investment.