Lost 78% within 1 week of purchase of Russian equity fund. My after-thoughts.

Discussion in 'Trading' started by Market_Observer, Mar 8, 2022.

  1. TheDawn

    TheDawn

    You took a chance and it didn't work out. It happens. Buying when everybody is panicking does not always work. This is the time it didn't, at least for now. It might turn around, you never know. If your fundamental reason for buying the Russian equity index fund hasn't changed then you don't need to panic sell. If that reason has changed completely then you would need to make adjustments accordingly.
     
    #11     Mar 9, 2022
    Nobert likes this.
  2. horizon

    horizon

    I am sorry to hear about your loss. I assume you did not diversify and only hold Russian Etf? At least you still have some cap to start again.
     
    #12     Mar 9, 2022
  3. I bought RSX thinking it was a tech stock, some at $15 and $7, sold half at $8.70 than after the trade suspension I realized it was a ETF. Now I am a bag holder with a loss. As for rapid losses, I had options go from $3 to $.05 after a nasty shelf offering minutes after buying.
     
    #13     Mar 9, 2022
  4. RSX is a meme stock
     
    #14     Mar 9, 2022
    d08 likes this.
  5. smallfil

    smallfil

    I am also, guessing you ignored risk management and traded a larger size, instead of limiting that trade to 2% risk? Had you limited yourself to 2% risk per trade, losing this trade would not have had a huge impact on your capital. There is another guy in another thread who traded in too high a size relative to his capital. Maybe, a small consolation, your Russian fund might be able to recover some of its value if and when the Ukrainian war is over. A couple of US pension funds suffered huge losses too. I imagine, they will hang on to their positions rather than sell at $0.10 on the $1.00 when they have probably, millions of their retirement funds invested in Russia? Sometimes, sitting on your positions is the right decision to take.
     
    Last edited: Mar 9, 2022
    #15     Mar 9, 2022
  6. The companies are solid. Hold (obviously, that's all you CAN do).
    When the shitshow is over, Russia will be relisted. Values will go back to appropriate levels.
    I bought just before they closed it, knowing it was likely. Small portion, of course.
    I think it will 5X and more. Eventually.
     
    #16     Mar 9, 2022
  7. Investing in Putin's Russia. What could possibly go wrong?
     
    #17     Mar 9, 2022
    TrailerParkTed likes this.
  8. Last edited: Mar 9, 2022
    #18     Mar 9, 2022
    newwurldmn and Nobert like this.
  9. It was a small position because it was a trade that was against my usual rules of not buying when the trend is down. The already small position was already cut by 85%, followed by another big cut by Mr Market. Hence, what's left is too little to make much difference whether I sell or not. Thanks for the suggestion. I will sit on the position and observe further.
     
    #19     Mar 9, 2022
  10. I'm worried about asset confiscation by the Russian government in retaliation. It doesn't matter whether an investment is a good one or not if it's going to be confiscated.
     
    #20     Mar 9, 2022