LogFAQs > #942104550

red sox 777 posted...

You're overinvested in AVCT. You shouldn't be putting most of your portfolio in one stock unless it's something extremely stable like Berkshire Hathaway or Apple or something. Like you don't need a lot of diversification but having like 3-5 stocks is a world of difference from 1.

And I say 1 even though you have more than that because your exposure in AVCT is around 100% of your portfolio equity. That's effectively the same thing as putting all your money in it.

No doubt about this. When I chased it during its sudden surge I was putting most of my money on it, GNUS style. When it went down I really should have cut my losses, even as badly as a 4k loss would have hurt. I stuck with it because I believe in it and absolutely still do, but I realize that the whole "you only lose money when you sell" mentality is asinine for speculative stocks like this.

I mean, I fully expected it might drop to the levels I originally bought it at (2.12) when the end of June ER didn't have the Computex numbers or forward guidance. And now I could now be putting my capital back into it at these levels. I guess the reason I didn't is because as likely as I thought it might be that it would keep bleeding out, stocks are still unpredictable and I would've been mad if I sold and it suddenly surged again if there was PR. I didn't 100% know I would be given the opportunity to buy again this cheap, I just thought it likely.

It's pretty tricky, and I'm not sure there's even any takeaway I can have from it. Cut losses quickly even at a significant chunk of your portfolio, and even when it's a company you've researched for hours and fully believe in? Hard to swallow.

Actually, one good takeaway is that if I ever double down on a surging stock I need to get out just as fast. There was a point that my account value was at 36k and I could have closed my position. Now it's half that.

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- Blur -
Welcome to your Divinity.