Hi RB, a painful lesson for me of too much focus on the...

Hi RB,
a painful lesson for me of too much focus on the fundamentals vs. reading the chart as well as focus on what I'd make vs capital protection. A rite of passage I guess.

Expensive tuition, especially averaging down!

The best thing one can do if they've been torched is to sit down, review, and learn from any mistakes made. Get some help even. Then look forward to the next opportunity. Fact is we don't know which investment/trades will deliver the big bucks but you have to have a strategy for success as well as handling any downside (eg. stop loss, eg2. some will invest an amount they are prepared to risk and keep holding as long as the story holds true).


For those who bought and held through the massive decline it was akin to the old story of the frog in the pot of water on the stove . . . And like most I thought, it'll come good eventually.

With some technical analysis now under my belt I don't plan to get in this situation again.
eg. Taking an Investor horizon view using a monthly chart with 10, 35, 200 period eMA's (source - a trading system by a smart bloke A.Tout who mainly uses it on weekly charts at tradethetape.com.au).
Using a simple eMA trading system shows during the 2010 rally price got > 10m eMA but the 10 failed to x/o the 35eMA. When price Closes back < 10 with 10 < 35 < 200 eMA's it's then time to exit the building and watch from the sidelines for another entry or not. {Note The price was 62c when it C < 10m eMA, which would have been ~ 15% loss for me at the time but much better than a further 60c hit (last close) and now dilution to come}. If you did not exit then the next chart exit sign was break of Support 33c.

Note how the 10m eMA has been stiff Resistance all the way down; just one attempt to breach.