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Do you get rattled by noise?

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Tyler Durden

Tyler Durden

Joined
24 December 2010
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No doubt, today the markets got smashed and pretty much everything took a beating. But at the same time, this is probably just a glitch for those who are in it for the long term.

However, I couldn't help but feel a little...shaken...at the losses that seemed to be piling up (not that I'm thinking of selling, but seeing the value go down so much so fast is a bit freaky) and wondered how others dealt with it?

Sometimes I think about James Packer for example. He bought $245m worth of TEN shares at about $1.40, so that's 175,000,000 shares. TEN shares hit a low of $1.11 today, meaning his $245m went down to roughly $194m - how does one feel looking at a screen and seeing $51m go down the drain??? Or do you think he just dismisses it as noise?
 
My portfolio is down about 6% from its all time high in mid January...care factor = 0
 
Yeh it's only down 8% from the highs of February.

What's different to say the falls of April last year is the mass of bad news around the World which is creating severely negative sentiment.

edit: as for James, he has made some massive blunders, investment-wise.
 


With 3.6 billion in assets, 51 mil down the drain is around a 1.4% loss over a couple of months. Nothing to cry about.
With a controlling stake, he's less concerned about daily share prices, and more interested in the media business etc
 
When you have Packer's level of assets, it doesn't really matter. He will always have enough to survive healthily in his small change.
You cannot compare his situation with yours and should not be reassured by such a comparison imo.




Gringotts Bank said:
Yeh it's only down 8% from the highs of February.

What's different to say the falls of April last year is the mass of bad news around the World which is creating severely negative sentiment.
Click to expand...
And this is overlaid on the rotten fundamentals of many global economies.
All up, it's a pretty foul picture.

"Only down 8%"? Where do you set your stop losses?

And a PS to Tyler: I'd classify the present situation as somewhat more significant than every day "noise".
 
Julia said:
And a PS to Tyler: I'd classify the present situation as somewhat more significant than every day "noise".
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I think it'll all blow over in the morning

Anymore of this panic selling and at the slightest hint of good news we're gonna see 'panic buying'
 
Tyler Durden said:
I couldn't help but feel a little...shaken...
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I'd like to feel shaken... I'd take that if offered it.
That would be considerably better than I'm currently feeling.

The sky seems to have come into contact with the ground where I'm standing.

Basically if I own it, it's been smashed. My average stock has lost around 20% in 4 days. And there's 15 of them. Has made for some interesting looking watchlists. Or perhaps watchlosts in this case.

So yes I guess I'm rattled.
 

no stops? a plan?

maybe a change of wealth creation maybe the go?

am being sincere , no malice intended.
 
poverty said:
Anymore of this panic selling and at the slightest hint of good news we're gonna see 'panic buying'
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lol

you,ll know when the " panic selling" starts....... this is not it.

depths cleaned, no onscreen buyers, at market major dumps to whatever appears., brokerages freezing , system meltdowns..... i could go on.

unna
 
I say most long term investors probably just carry on without too much worries ...

I on the other hand bought 30K worth of stock today

I have a set of business I want to buy at a certain price and the only time I can get them cheap enough is when we have some sort of meltdown.

I start out getting a few hundred bucks of dividend a year, then it move on to thousands now it move on to 10 of thousands and it keep going up each year and I always strike hard in time like this, it has not failed ..

the only thing that I sometimes get wrong is timing, I may bought in a bit too early but the end result are always the same ... steady increase in dividend and stock price over time be it 5 years, 10 years or 20 years...

Here is something I been doing a bit lately

CCV initial parcel at 46c a few years ago it went down lower than my purchase price cant remember exactly, maybe 42 or 40 or around there

in the last 6-8 months this is what I did

CCV I top up at 60 cents it went down to 55c

CCV I top again at 76c it went down to 70c then it went to 90c

CCV I top up again yesterday at 78c it end the day 77c
today it went even lower but didn't reach my next parcel purchase price and close 78c

Fast forward 5-10 years from now, I can tell you with fair degree of confident that those movement barely register in a bigger picture.

so if I take the initial lot of 46c (2-3 years ago) and register at today price of 78c
does it make much of a difference if I get them at 46c or 42c?, yes the return

will be better at 42c but there is no way I can time the bottum so buying early
below its intrinsic value is good enough with me

and all that crazy up and down pay me awesome dividend each year and an increase payout this year and I expect many more time of increase payout in the next few decades

I have many similar stocks follow very same trend, sometimes I'm lucky to be able to buy at the bottom more often than not I come in early but my care factor is zero when I can buy stuff cheaper than I think it worth...

Use fear to your advantage there is an old Chinese saying

"When winds of change blow, some seek shelter, others Build Windmills!"
 
nunthewiser said:
no stops? a plan?

maybe a change of wealth creation maybe the go?

am being sincere , no malice intended.
Click to expand...

No stops, but did try to sell out of most of my holdings and failed/didn't try hard enough.

I know index wise this isn't a big deal, but I'm trying to look at it as a one off hurdle I need to make it over. Having done the same thing for 2 years now with a Max DD of 13% it seems odd to have easily cleared that in 2 days alone
 

no worries.

i hope your strategy works out for you.

your not the only one that gets stuck at times, it happens to us all at varying points.(except some internet forum experts)

its just to what damage it inflicts is the deciding point.

its the lessons we learn from losses/drawdowns/bunny in the headlights that are the ones that will pave your reactions/thought process next time.

if one learns that is..

hope it works out for you
 
matty77 said:
Just dont sell anything, therefore you have lost.... nothing!
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Exactly what all those holders of ABC Learning, Babcock & Brown et al said as their one time asset descended to nothing.
 

Packer bought into Ten to get a place on the board and try to form some business alliances with some of his own and associated companies. The actual share price to get in the position of influence was a small piece of the business plan from which he expected to see much more revenue flow through to his coffers over the medium to longer term.

I doubt he will be fretting over yesterdays share price slump, rather he'll be looking at the future profitability of Ten and any joint business arrangements that come of it.
 
I was stopped out of 1 of 5 on monday and then another 3 of the 5 yesterday but also bought +1 for a current 3 open positions.
It does make for a slightly twitchy feeling as you see profits of 2 weeks ago evaporate and turn into losses, especially for the beginning trader such as myself.
I thought about liquidating everything on Monday over the weekend but didn't, I don't regret it.
I also thought about loosening the stops to ride out what I think will be a pretty temporary downturn but didn't, I don't regret it.
The plan is tested and works on paper, it has also worked well in better times.
I don't want to ride a "temporary" downturn of 20,30,40,50% by deviating.
I'd much rather get stopped out and not take any more positions until I see (not feel) a proper recovery.

YMMV, and may your strategy bring you happiness.

Cheers,
JB
 
Julia said:
Exactly what all those holders of ABC Learning, Babcock & Brown et al said as their one time asset descended to nothing.
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That is untrue. You gain a tax-offset asset. :goodnight
 
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