You really have a hard time with the concept of parking a position LOL... As I've mentioned many times my risk is managed by capital allocated.
It's not your risk or sitting on losers it's your statement that "Any stock that doesn't pay a dividend doesn't perform." is kind of at odds with your investment strategy. Parking a position is rationalization for holding losers. Capital that is not working for you. Treat your positions like employees. fire the ones not making you any money.
Yeah and what if that supermarket fired Curt Warner and he left town before getting picked up by the rams? For the record we're talking 2k capital here now not 30k...if that was the case I'd sell at a loss to move the funds and take the tax write-off.
For the record" We are talking 14K of capital. Just think if you had taken you loss and sold 800 shares of Sava at 4.65 instead of averaged down and reinvested in MSTY. You own 180 shares give or take and have 15.16 in dividends paid since Dec 2024. 180 x 15.16 = 2728 dividends plus 180 shares at todays close = $3749 for total of $6749. Now had you taken the capital you used to average down and added it to the 800 shares you could have/should have sold (700X 4.65 = $3252 or 160 shares of MSTY) A combined total of 340 shares of MSTY 340 x 15.16 divy = $5141 340 X todays close =$7082 Total value today + dividends =$12223 Todays closing value for SAVA 1500 x 2.35 =$3525 So by not taking a loss and averaging down you are behind at least a couple of car payments.
What loss? I took the premium and stock dropped before PM...haven't thought about it since ..but it seems to live rent free in your head lol.
. The loss you didn't take. Your overall account balance could have been much larger than it is today if you had taken a loss instead of averaging down. You could have made much better use of that capital. Well it has to live there rent free. I know you can't afford any extra expences with your payments and all. Just trying to point out that taking losses quickly is better than sticking your head in the sand and forgetting about them, or as you call it, parking a position. LOL
Where was the loss avoidable? Do stop losses work ah? Lol...damage was done at open...premium was the play. I did not realize that it was phase 3 COG but still allowed for 3SD. To be clear I had no faith in the drug...it was all about IV. Rethink‑ALZ Trial (ReThink‑ALZ, ~52 weeks) Enrolled ~804 participants with mild‑to‑moderate Alzheimer’s disease. Co‑primary cognitive endpoint (ADAS‑Cog12): Simufilam group had a mean increase (worsening) of +2.8 points (SE 0.36) Placebo group had a larger mean increase (worsening) of +3.2 points (SE 0.36) Difference = −0.39 points (simufilam slightly better), p = 0.43 → not statistically significant Thus, no meaningful cognitive benefit on ADAS‑Cog12 compared to placebo LOL how do you get to phase 3 and it ends up performing worse than the placebo
The loss was not avoidable. But you could have bailed the first day. Instead you added to a losing position. And now you are sitting with a loss that is much larger than you could have experienced. Capital tied up. LOL Dead Money!!! Position parked and forgot about___ Inefficient use of capital. Stop loss is a misnomer. It doesn't stop a loss , it guarantees one. I prefer to call it a capital preservation exit. Take losses quickly, let winners run. Look at your account balance at the end of the day/week/month.
Position Breakdown Initial position: 800 shares @ $23.00 = $18,400 Current price = $2.30 Unrealized loss = 800 × ($23.00 - $2.30) = -$16,560 --- Averaged down with: 700 shares @ $2.50 = $1,750 New total position: 1,500 shares @ $13.43 avg cost Current price = $2.30 Unrealized loss = 1,500 × ($13.43 - $2.30) = -$16,695 --- P&L Summary: Before averaging down: -$16,560 After averaging down: -$16,695 ➡️ Averaging down increased total loss by $135, but lowered your average cost basis to $13.43 — giving more upside if the stock recovers.
Except you averaged down at 4.65 not 2.50 Adding insult to injury lol, you'd have been better off to sell your 800 shares at 4.65 and put the money to use. And that was 8 months ago. Dead money LOL