...is one of my favourite quotes from Spaced
Skipping to the end, I lost 13 percent of my pension fund this week. I'm still reeling from how foolishly I acted.
I basically broke every rule and went against all normal investment advice.
Accountability is fine when everything goes well but extremely unpleasant when it goes wrong but here goes...
On Tuesday I started to see forum posts about a meteoric rise in Sareum Holdings (SAR) share price. I eventually checked and confirmed a 200% rise on Tuesday's price.
I was very tempted to try and day trade and on Wednesday the price doubled again. I tried to buy some shares but wasn't initially able to deal online. I had also seen on the same forum, postings that a company related to Sareum was seeing a huge share price rise - Physiomics (PYC). I decided, based on nothing more at this point on greed and a desire to avoid missing the boat, to buy Physiomics. By the time I tried to buy, the share price had jumped again and was up 300% at 1.1p a share. I bought and the price immediately fell 40%. I had just lost 4% of my pension fund.
I spent a feverish few minutes watching the share price continue to fall and eventually realised I had no way of knowing how far the price would fall or if it would recover and sold out having lost 6%.
I couldn't believe how stupidly I had acted. I couldn't believe it enough that I tried to win the money back.
I had originally intended to buy Sareum so I tried again. The share price had peaked at 5p a share and had fallen back. Share prices often fall back and then rise again and I thought if I bought as it rose, I could recover what I had lost. I invested a larger sum.
The price went up, slightly, then fell back. I was now losing a larger percentage the more the price went down. By this time I was frantic. Did I hold on assuming the price would rise. I studied the chart and realised that each peak was lower than the previous, a clear sign that confidence had gone in the price.
I eventually sold out having lost more than I had tried to recover.
The irony of my previous post is not lost on me. Here I am stating that I am fully capable of making complex decisions and yet I blow a substantial sum of money having a flutter on the stock market.
I'm reluctant to make any statements about what I will do or will never do again as a result of this week. I thought I had already decided rules to trade by. Obviously not enough.
The work of motherhood: Leslie.
12 hours ago