Social Icons

Sunday, May 9, 2010

How I lost near 3 000$ in one day of trading or my investment portfolio after the Dark Friday

Many things had changed between May 1 and May 7, 2010. Back on May 1, 2010, my investment portfolio was at 88 632.24$. On date of May 7, 2010, the same portfolio was at 85 711.15$. This represent a lost of 2 921.19$. I was very curious to find out how much I had lost. In my mind, it was clear I was loosing around 2 000$ to 3 000$. It happen that I am very close to the 3 000$ in money lost. But its not really money lost because I didn’t sell anything. It’s more about taking a taste of the market volatibility. And I hate that taste lol.

Should I stay away from the stock market? My answer is no. Greece debt and other European problems had resulted on a Dark Friday this late May 7, 2010. I don’t know exactly what caused the crash, if it’s the result of investors selling their stocks and units but from my part, I can handle those looses, in the sense it won’t make me sell my stocks and units. Not to forget that earlier in April, my portfolio had reached over 89 000$. The market will eventually recover. I am just very curious on how it will turn out this upcoming Monday. In those recession times, the stock market can be a very scary place to me. But for myself, its too late, I just want to be there and whatever happens, I will just follow the flow. Even if the worst could be ahead, I cannot imagine myself selling my investment portfolio. What would I be doing with all of the cash anyway? My life would lost all of its excitement, no more money lost, no more gains, no more dividend. Stock market is a nice way to spice up your life. And at this time, the market is kind of hot.

My best advice will be: Invest if you don’t mind about the risk. If you are scare about loosing money in the stock market, simply do not invest in stocks and units. Because yes, the stock market is volatile and guesses what, it’s not even over yet.

I still plan to make another investment in June. I was thinking about Corby Distilleries Limited (CDL.A), but I have to say, I am quite tempted by 200 units of Just Energy Income Fund (JE.UN). But in those recession time, its better to diversify so I just plan to follow what I had already plan and purchase 100 stocks of CDL.A. June seem to be so far away! I have 844.64$ save in cash for my next investment. Just very excited. I learn more lately about contribution in kind to a RSP and TFSA and my discovery will be the topic of my next post.

3 comments:

Anonymous said...

Hey Sunny,

Don't be discouraged. A depressed market is actually a good opportunity to buy stock "Cheap"
As Warren Buffett said
"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful"
Yes, it is very difficult to watch your equity’s market value drops.
To make you feel better, I suggest you check out the concept of
"Mr. Market". This is an imaginary character described by Warren Buffett's teacher Ben Graham. The “Mr. Market” concept explains why we should pay less attention to daily market activities and focus more on companies' fundamentals.

Ray

Sunny said...

Hi Ray, thanks for passing by. I am not discourages, just shake up. I had been true real worst. It was important to see how much I had lost in one day.

Pritar said...

It happened to us all :)

Look at it now, should be back near to par...

 

Thank you

Thank you for visiting!
 
Blogger Templates