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Market Loss Recovery

When good stock picks go south, it is depressing.  It is not only a loss of capital, it is an injury to my stock-picking pride.  There are so many factors involved in the free market of what people will pay for stocks, it is difficult at best to choose winners.

These are our options:

  • Wait it out – it could take a year
  • Sell the stock for a loss and take the hit
  • Buy more at the lower price, averaging the share price lower, and hoping for recovery (requires additional capital)
  • Trade for a similar stock that is rising (if no hope)
  • Take action to climb out of the pit

Climbing out of a pit is tedious at best.  Visualize a rock wall climber, looking for the next small support that can support their weight.  Sometimes the steps are lateral, sometimes down (yuk!) but often, we hope the steps are higher.

The wall is the stock price.  The small support steps are the way out of the pit.  The daily range is our reach.  The object is to sell at today’s high and buy at today’s low, then repeat the next day.

An example is CNL, June 5 BUY @ $21.29, June 11 SELL @ $21.93.  Then June 12 BUY @ $21.65, June 19 SELL @ $22.75.  Profit in this example is $0.74, more than the stock rose.

It is a very tricky technique.  Be forewarned, you could lose more.

Stocks go down and they go up.  Be patient.  You are the hunter.

      Recovery      
Symbol Buy date -price   Sell date -price Loss
             
        Aug
             
    R=Roller  MO=Mkt@Open      
Symbol Buy date -price   Sell date -price Loss
AOI Aug 11   3.31   Aug 16   3.22 -0.09
AOI     3.63   LH   5.06   ^
             
CQB Aug 12 13.39   Aug 16 13.29 -0.10
CQB Aug 31 12.88   LH 14.97    
             
EMC Aug 18 18.88   Aug 20 18.60 -0.28
EMC Aug 31 18.15   LH 20.97 19.21  
             
FNF Aug 12 14.13   Aug 16 14.08 -0.05
FNF Aug 31 14.39   LH 15.18    
             
FUQI Aug 19   7.37   Aug 23   7.07 -0.30
FUQI Aug 31   6.13   LH   8.76   6.61  
             
GPOR Aug 12 12.64   Aug 16 12.31 -0.33
GPOR   11.80   LH 14.71    
             
HMA Aug 16   6.65   Aug 20   6.50 -0.15
HMA Aug 26   6.33   Aug 27   6.27 -0.21
HMA     6.48   LH  9.81    
             
IRDM Aug 16   9.32   Aug 20   9.06 -0.26
IRDM Aug 26   9.12   Sep 1   8.69  -0.02
IRDM       LH 11.13    
             
PUK Aug 24 17.25   Aug 26 17.05 -0.20
PUK Aug 31 17.03   LH 18.72    
             
RICK Aug 20   6.73   Aug 30   6.31 -0.42
RICK       LH   9.42    
             
SWI Aug 24 14.96   Aug 26 14.80 -0.16
SWI       LH 19.82    
             
SYKE Aug 18 12.32   Aug 19 12.09 -0.23
SYKE Aug 24 11.92   LH 16.70   +
             
TIN Aug 12 18.03   Aug 20 17.46 -0.57
TIN Aug 31 15.58   LH  24.07    
             
VIP Aug 16 15.63   Aug 23 14.83 -0.80
VIP Aug 31 14.66   LH 17.72 14.97  
             
            * Breakeven
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