How to Manage a massive loss on the market

quite a few health shares are tanking, i do not know this one in particular. MYX has done a similar although less dramatic drop. i am holding for now but i have purchased on the way down and the fundamentals are strong. but i don't have a significant investment so can afford the risk.

i'd be very worried if it was preventing my next IP though. do you follow the sentiment on any stock watch forums?

 

Awesome thanks for the insight i agree with not trying to over complicate things but its good to have another way of looking over a stock im going to order the book now if i get stuck with anything ill be sure to give you a message thanks

 

Hey pat generally ill have a look on hot copper to see what people are thinking discussing i dont look all that much into it though cause there could always be alternative motives regarding there post and points

 

Very true. I've been looking on hot copper but they all argue a lot and hype stocks even when they're crashing.

 

Sharky. I can sympathise with ya. I lost big time on TLS earlier this year. Yep, realised loss. I took my money and just reinvested back into the market into numerous blue chip shares and in the space of a week I regained 10% of the loss. Talk about adrenaline rush. I could have easily jumped from the frying pan into fire.

When I see my accountant I'm just hoping I can classify myself as a share trader but I don't like my chances.

The loss may have to sit on the capital account.

The good news is that the Druitt is still looking strong!

 

Don't know if this will help, this is my story, ... partner's business lost $1M in 2008 GFC and today well we are both financially free, but it hurt big time.

At the time I can tell you it would have been far easier to dig a hole and jump in it, but that really was not an option. Am a big one on finding a solution and just taking the bull by the horn.

How many hours a week do you "work"?


"I did not particularly want to post this on a public forum as its personal and very painful, but seeing you asked I will elaborate on my story.

Just after GFC my husband was operating a successful manufacturing business in Perth employing 18 people, solely dependent on the mining industry. Within 2 weeks many of our major jobs were mothballed and one of our major clients went into administration and took us with them.

We lost over $1M practically overnight and a business that provided a very nice lifestyle was gone. That's a lot of money in 2008, probably does not seem like much today.

At this point in time I had been property investing for about 6 years, day job gone, and was purely focusing on property. I also never worked in my husband’s business, way too stressful. During this period I had 12 properties in various States around Australia. However the majority were highly negatively geared, what you call blue chip I guess for a better term. This was the only strategy I understood at this time and of course the business had the income to support these blood sucking properties. We were able to manage the debt because our company just increased our income, and the company was always making money and enough cash flow to service lifestyle and debt.

Once the **** hit the fan and the company went into administration, we placed our dream home then worth close to $2M on the market and within 1 month I sold 6 investment properties. Five of these properties were in Melbourne. Melbourne had just had an amazing property boom and I was able to flip these very quickly. Which saved the bacon.

We were then able to take our dream home off the market, the best day of my life when the "for sale" sign was removed from our verge. We still live here by the way.

We picked up the pieces, and then things started to turn around, my husband’s largest client was not ready to give up on our business and decided they were going to buy into it, they were basically just buying the name and they wanted my husband to operate the business.

Next chapter in my life, I realised I needed to do things differently with property investing and that I needed cash flow, no longer did we have the big income from our company to support continually buying negatively geared property.

This is when I started looking at different strategies, where I could generate cash flow.
This is when I decided to go to USA Atlanta purchase properties that would generate income/cash flow from day 1. I had $1M cash and spent $500K and purchased 8 properties in Atlanta, these properties now generate an income of $120,000 pa and have tripled in value. Problem solved, have cash flow. However, I was not ready to just stop property investing.

At this point in time my husband was in a position to give away his day job, however I started reading Westminster's posts and realised I was doing something wrong. I told my husband I want to be a property developer, he said "but you cant, and I said, but I can".

Moving on I have completed 2 developments in Perth which I sold and currently 2 on the go in Melbourne. As a developer we are dependent on bank finance and this financial year will be the year where I do not need my husband's income to service futures loans. Praise the Lord.. or whoever

I never posted the story on the forum because its been very difficult when you have gone through something like a failed business, but I now feel liberated, I have done it now.

The moral of the story is never give up and be positive".

MTR