https://markets.businessinsider.com...tock-98-percent-price-drop-2019-11-1028708885 " The marble-mining company ArtGo was on track to be the world's best-performing stock for firms worth than $1 billion. On Thursday morning, however, its shares tanked 98%, and the company saw $5.7 billion in market value wiped out before trading was suspended. The Hong Kong-listed stock plummeted after MSCI dropped its plans to include ArtGo in its influential indexes, a development first reported by The Wall Street Journal. The New York firm announced in early November that it was looking to add ArtGo to its China index. On Wednesday, MSCI said the company would no longer be added after "further analysis and feedback from market participants on investability," The Journal reported." Thursday's plunge came one day after The Journal detailed ArtGo's 3,800% gain through the year. ============================================ Recently, I've noticed the VIOLENCE and SPEED of stocks' decline in reaction to bad news are pretty extreme. Stocks can drop 45% in a matter of 30minutes. 98% is just pure insanity. I wonder if any retail investors could even get out in a situation like that since they were probably sitting pretty with several thousand percent return. Imagine you are the average Chinese investor and you are up 3800% or maybe 1000% up depending where you got in. Feeling pretty good then one morning it's all gone. And it's gone.
quite straight forward chart to trade. On 20 sept 19 , it was long red candle with huge volume. On 8 Nov 19 and subsequent days, price went up significantly but volume was rather pathetic. most likely newbies went to buy the stock. For such stock, do expect price to collapse massively.
%% DONT know how accurate my data is on that one LOL; but on a 52 week chart, I seldom start with $$ 00.35 or 80% loss in a week, but those riots may have resulted in panic selling??
It is actually not as bad as it sounded: Up 3800% and down 98% means my $100 is down to $76. Not the end of the world. I did far worse with my GE, TEVA....
Fair enought. But you assumed all the investors bought at the beginning of the move. The Johnny come lates probably bought near the peak expecting another breakout until they are basically wiped out.
I dunno, if I'm ever up 3800% on a stock its because I booked profits on the way up and all I have left by then is a small runner position with a stop. If you as a trader do not take profits when you have them then someone else will.