Im sick!

OG-KGP

Well-Known Member
I have been investing in a real estate stock that has been climbing and climbing for many months. I was recently at 30% return.

Today, I checked and it tanked. I lost over 25 thousand dollars overnight.

I know what I am going to do, but just curious on opinions. Do I sell, so that I don't lose anymore if the stock continues to sink? Or do I hold it out in hopes for a rebound?

Thinking long term here, no short sales or quick flips. Market is to viatol for me to play with.
 

OG-KGP

Well-Known Member
What % of your portfolio does this represent? How diversified are you?
I've been dumping more throughout the last few months. It was about 37% of my portfolio.

I'm pretty diverse. I have my low risk options as well as a couple others that are performing better and more spread out. But this stock just really strung me along.

I wonder if it had something to do with the tornados down south, if not, inside trading job.

Im not much of a trader at all, really. I was just seeing the gains and got greedy. Costly mistake on my part.

I just ate a big greasy hamburger to make me feel better about my life.
 

waterproof808

Well-Known Member
Next time set a stop loss at 10-20% off your purchase price to cut your losses early before they get too gnarly. You can also use trailing stops that will automatically sell your stock when you are in profits and the price starts to reverse, this will secure your profits.
 

waterproof808

Well-Known Member
That sux man!

Don't knee jerk and bail though, it will recover by next summer.

Err nevermind you already dumped.
You also have to consider opportunity cost. You might miss out on a better opportunity by having 190k locked up in one stock that is underperforming while other market sectors are booming.
 

OG-KGP

Well-Known Member
Next time set a stop loss at 10-20% off your purchase price to cut your losses early before they get too gnarly. You can also use trailing stops that will automatically sell your stock when you are in profits and the price starts to reverse, this will secure your profits.
You also have to consider opportunity cost. You might miss out on a better opportunity by having 190k locked up in one stock that is underperforming while other market sectors are booming.
Ill have to look into those features.

The stock was performing well until yesterday. I checked again today and its still falling.
 

mudballs

Well-Known Member
If you're apt in options, sounds like you might be, you could look into selling calls. I'm not someone that advises on financial moves but premium on options is good if that IV spiked high enough. I don't even know the ticker but options and volatility are ripe hunting grounds
 

OG-KGP

Well-Known Member
If you're apt in options, sounds like you might be, you could look into selling calls. I'm not someone that advises on financial moves but premium on options is good if that IV spiked high enough. I don't even know the ticker but options and volatility are ripe hunting grounds
Agreed. I dabble with just about anything I can make a profit in.

And you're right, one mans loss is another mans buy. I've got my eyes peeled for a rebound.

I know the market always gets crazy around this time of the year regardless. Year ends and what not.

All that AMC, dodge, shiba, I was a day late and took some L's with those also but with all those get jump on the train things are usually to good to be true.

I guess that's what made me sick about this one. No crazy gains, just steady, gradual climb. Then boom. Drop..

Im still ahead in my investments, I just lost a lot of profits on this one.
 

mudballs

Well-Known Member
Agreed. I dabble with just about anything I can make a profit in.

And you're right, one mans loss is another mans buy. I've got my eyes peeled for a rebound.

I know the market always gets crazy around this time of the year regardless. Year ends and what not.

All that AMC, dodge, shiba, I was a day late and took some L's with those also but with all those get jump on the train things are usually to good to be true.

I guess that's what made me sick about this one. No crazy gains, just steady, gradual climb. Then boom. Drop..

Im still ahead in my investments, I just lost a lot of profits on this one.
you don't know what i'm talking about do you. They're called "covered calls" or even further is the "wheel strategy". You could have locked a large portion of that 30% gain if you had sold calls and not been emotionally attached to the underlying. But now you're on the declining trend so if i was interested in possibly increasing my position at this new discounted price, i'd consider selling cash covered puts.
 

xtsho

Well-Known Member
I'd be cautious with real estate based investments right now.

I don't know much about Nuveen but they do have some exposure to China's collapsing real estate market including Evergrande.

"Some funds exposed to China Evergrande bonds include Loomis Sayles Funds I, RBC Funds Trust, BlackRock Multi-Sector Opportunities Trust, Nuveen Corporate Income November 2021 Target Term Fund (JHB), BlackRock Core Bond Trust, Krane Shares Trust, WisdomTree Trust, Nuveen Emerging Markets"

 

OG-KGP

Well-Known Member
I'd be cautious with real estate based investments right now.

I don't know much about Nuveen but they do have some exposure to China's collapsing real estate market including Evergrande.

"Some funds exposed to China Evergrande bonds include Loomis Sayles Funds I, RBC Funds Trust, BlackRock Multi-Sector Opportunities Trust, Nuveen Corporate Income November 2021 Target Term Fund (JHB), BlackRock Core Bond Trust, Krane Shares Trust, WisdomTree Trust, Nuveen Emerging Markets"

Interesting read. Thanks for sharing it.
 
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