Yep £80k is a hefty loss by any measure. No, I will not give my money to fund managers as I beat them year after year. This is my first single stock wipe-out and I hope the last. In any case lessons learned, up to 10% of investable cash into any single stock. Shares I tend to buy when undervalued and reinvest dividends until they become overvalued. I don't trade them and seldom take losses. This one to be honest I didn't see coming. The company made a small loss, and the first loss in years as well as a new hardware cycle just around the corner did not warrant for getting out at a loss. Also I tend to follow institutions and they were buying. Only when EA announced fallout with GMG did I smell the rat, but by that time my loss was already rather large. In any case I'm confident that my other shares will do well and get their usual 25% per annum which would annul GMG loss within 2 years. I use stock market as a low effort investment vehicle (buy and hold and reinvest dividends) as anything else would result in lower returns. What I do actively trade is the FOREX market. Several times a day, and have been doing rather well (2%-5% per month with very low leverage 2% and almost no drawdowns). The idea being that you must loose your opinion and follow price action alone. Anyone trading stocks especially buying this pile of crap and hoping for a bounce is a pure gambler. Go and trade FOREX where 3rd party risks are very small, and price action is much more predictable. 4 trillion USD a day market, almost unlimited liquidity on major pairs. And if you want your heart race, you can leverage 1:100 easily. Very sorry to see shareholders wiped-out, as most of us bought into the genuine recovery story. Good luck chaps and I hope this episode didn't kill anyone (financially).
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