Sunday, August 23, 2015

Market fell -10% and I haven't sold. What to do now?

As expected IBOV continues going down. This is the third week in a row, but, the downward trend started 5 weeks ago and that is why we closed practically all our trades, when we could have some profit. If we had kept them we would be losing money now and nobody likes losing money on bad investments. IBOV opened at 47.5k and closed at 45.7k points, losing -3.7% in one week. This is the lowest point since March/2014.

Our stocks:
BRFS3. Let's increase Stop Loss to 67.22. If stock goes down, we still have around 6% of profit. If it goes up, we keep it. In the same period IBOV lost -12%.
GETI3. Let's increase Stop Loss to 16.14. If it goes down, we stil have 8% of profit. IBOV lost -20% on the same period of this trade.
VLID3 and GETI3, sold during the week as I explained on last post.

What to do if you have stocks and you haven't sold yet?

Well, I always prefer to use Stop Loss and sell fast. My Stop Loss already tell me the maximum I can lose in one investment. The problem is that many people don't use Stop Loss and don't limit their losses. Then, they say that they are investing for the long term and will keep the stock... (I did this in the past). In my case (and I think this may be happening to you in this situation) is that the pain gets higher and higher every week and you regret you haven't sold yet. My suggestion: sell and relax. I prefer that you have the money back on our account and stop losing (because it may go down even more). If you decide to keep it, you become a person "cheering" for the stock. There is nothing saying that it will go up, but you prefer to think that it will... I prefer that you sell and wait for the correct time to buy the stock again.

I will stay one more week just watching the market.

Have a great week.



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