how much have you lost in the stockmarket

[Pushka]

I held ZFX too long,

Hey Sun, they do pay amazing dividends though! I did the opposite, I bought into ZFX when it was high - I did bail though - at a loss but bought back in at the recent lows!

This crash or whatever it was, or is, has been an excellent learning curve.

 

[GreatPig]

This crash or whatever it was, or is, has been an excellent learning curve.

Maybe some more learning next week...

http://money.cnn.com/2008/01/25/markets/markets_wrap/index.htm

Interesting that in the light of recent falls, they can still call one and a half percent "tanked". In terms of recent All-Ords falls, I'd call that not too bad.

And there's another night of Europe and US trading before our market is open again.

GP

 

[chilliaa]

Guys please dont get me wrong, i am not trying to be critical.
But why are so many people in this forum, knowledgable long term holders in property, yet when it comes to the stockmarket, alot of people seem to just be traders.
Dont the same basic rules apply,
ie transaction costs, capital gains taxes etc
I know obviously the share market is much more liquid and thus more volotile, but the basic investment tenaments should be the same???

 

[Pushka]

I cant even compare the share market with property. True they are both investments, but very different vehicles. The share market has far more psychology involved than property.

 

[The Y-man]

basic investment tenaments should be the same???

Yes, except when buying shares, people don't seem to get their building inspection, valuation and insurance in order before buying.....

Cheers,

The Y-man

 

[s_t]

I cant even compare the share market with property. True they are both investments, but very different vehicles. The share market has far more psychology involved than property.

Only because of readily available and fluctuating valuations/prices of shares.
I agree with you Chilliaa. I think also that the ease of buying/selling tempts people to try and 'beat the market'.

 

[chilliaa]

Potential warning with margin loans

This is only a potential issue but a risk factor never the less. As you have probably read Trisomething or other, an australian stock boker with a significant margin lending book, has recently had problems settling with the ASX. This in itself is not really a problem, however the potential future problem is what happens if institutions stop or reduce their exposure to margin lending. Two scenarios from this is an increase in the % of security that must be placed, ie a decrease in the leverage. eg BHP security value droping from say 70% to 60%. (or even worse the removal of securities from a firms 'elibigle securities list). The other risk is the closure of the leverage facility all together.

Am i just jumping at shadows or does this pose a serious risk?

 

[yo yo ma]

As you have probably read Trisomething or other, an australian stock boker with a significant margin lending book, has recently had problems settling with the ASX.

Here's the link to Tricom.

 

[luce.rocks]

As at today: $322.40.

I think I'll manage.

 

[willair]

Here's the link to Tricom.

Just wondering if anyone knows this company from the Gold Coast..
willair.

http://www.mfsgroup.com.au/managed-funds/

 

[geoffw]

With the Sub prime crisis in the US, I thought that this cartoon was good.

For some reason, I thought of Thommo Sunfish

 

[s_t]

It sounds like Tricom's customers weren't coughing up money to meet there margin calls fast enough. and the credit Tricom have setup to cover themselves till the customers cough up failed for some reason. I wouldn't have thought that it is a major ongoing issue.

Changing LVR limits wouldn't stop that happening at all. If the market falls quickly, there will always be people getting margin calls cause they are close to the max allowable LVR, whether that be 30% or 70%.

 

[Sunfish]

It sounds like Tricom's customers weren't coughing up money to meet there margin calls fast enough.

The Tricom fiasco has amplified America's jitters. For something to have such a great affect we must assume it is real but I have been unable to find out why.

The only good clue I've had was on ABC radio when an "expert" was explaining that Tricom's business model was not that of a conventional margin lender, which are invariably parts of banks. With them, the equities are still in the punter's name and the the bank lends against his/her shares. Simple commercial practice. But with Tricom the punter put up the margin and Tricom bought the shares and deposited the scrip with a bank who lent against them.

At this point I'm not sure if the reporters know the difference between conventional margin and CFDs, but I suspect not. I think Tricom was big in CFDs. Either way, if the market value of the shares drop markedly the bank will make a call against Tricom who will then do the only thing they can do and sell stock, which they did, but buyers will only pay for them at T+3. Doesn't help much when you have to settle by 12.30. LOL I suspect some had their positions closed out without being outside agreed limits even.

I mentioned Whackamole earlier but it seems these, major, forced sales just keep popping up their heads.

If anyone can fill in or correct this, I'd be grateful. Regards.

BTW Counter-party risk is looming as a much, much bigger problem than the few piddlin dollars at risk with "liar loans".

 

[luce.rocks]

As at today: $322.40.

I think I'll manage.

Today I'm up $516! Can't wait to see what happens next...

 

[the_one]

Sorry to hear all the sad stories. However I am up by 23.5K since last month. Thats not from the share market though. I do forex and it is great since it doesn't matter what direction the currency is trading.

I follow OzFx and it has been great run so far.

Regards
The_One

 

[WinstonWolfe]

Sorry to hear all the sad stories. However I am up by 23.5K since last month. Thats not from the share market though. I do forex and it is great since it doesn't matter what direction the currency is trading.

I follow OzFx and it has been great run so far.

Regards
The_One

$ return isn't a great measure of performance.
do you use a risk adjusted rate of return, or even % return?

 

[the_one]

$ return isn't a great measure of performance.
do you use a risk adjusted rate of return, or even % return?

My account grew from 74k to 97.5K. I'll leave the % calculation to you.

 

[alexlee]

My account grew from 74k to 97.5K. I'll leave the % calculation to you.

Now, all you have to do is make that much % a month, and you'll have 1.7m in a year, 33m in 2 years, and be a billionaire in just over 3 years.
Alex

 

[WinstonWolfe]

My account grew from 74k to 97.5K. I'll leave the % calculation to you.

Well, the % calculation doesn't mean squat to me either Uno.
Risk increases the higher the number of days you are in the market, if you are not controlling your risk....

Could I suggest you read up on risk management as to avoid a major drawdown on your account. If you haven't had one of these, it will stop your heart when you do.....

The concepts you want to absorb are
win rate
loss rate
expectancy
profit
average length of trade

 

[the_one]

Now, all you have to do is make that much % a month, and you'll have 1.7m in a year, 33m in 2 years, and be a billionaire in just over 3 years.
Alex

I wish it works like that. I take out my profits at the end of the month and trade only with what I left. Not trying to double my profits every time...just enough to keep me out of day job.