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Help! I'm losing a fortune on the stock exchange... watch

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    I spend a lot of time of the stock exchange doing some casual trading and it's generally a good way to make some money. My golden rule is never to be greedy and always invest in markets which have low risk and high potential. Generally speaking, I rarely lose money because I rarely gamble.

    However, today I ****ed up. I've been investing a lot in European markets lately such as FTSE 100, DAX and Austria 30 because they've all been doing quite well in the wake of the European referendum. I made quite a bit of money this money after having bought Sterling moments after Leadsom quit the Tory leadership race. However, I also bought Euros (EUR/AUD) with the expectation that the Euro would also increase in value, and it hasn't. It's now at it's lowest levels since June last year and I'm down more than £1,000.

    Should I try and weather the storm and risk getting a margin call, or sell and just take the blow?
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    (Original post by jake4198)
    I spend a lot of time of the stock exchange doing some casual trading and it's generally a good way to make some money. My golden rule is never to be greedy and always invest in markets which have low risk and high potential. Generally speaking, I rarely lose money because I rarely gamble.

    However, today I ****ed up. I've been investing a lot in European markets lately such as FTSE 100, DAX and Austria 30 because they've all been doing quite well in the wake of the European referendum. I made quite a bit of money this money after having bought Sterling moments after Leadsom quit the Tory leadership race. However, I also bought Euros (EUR/AUD) with the expectation that the Euro would also increase in value, and it hasn't. It's now at it's lowest levels since June last year and I'm down more than £1,000.

    Should I try and weather the storm and risk getting a margin call, or sell and just take the blow?
    u shouldn't sell
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    You should learn when to cut losses. £1000 is way too high to continue trading but you might have reached a floor so I'd probably check the indicators (look at the P/E, RSI, moving average, fundamentals) and if it has become undervalued then I'd ride out the storm and try and see whether you can make the loss a bit smaller.

    Next time put a stop loss when you trade.
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    (Original post by jake4198)
    I spend a lot of time of the stock exchange doing some casual trading and it's generally a good way to make some money. My golden rule is never to be greedy and always invest in markets which have low risk and high potential. Generally speaking, I rarely lose money because I rarely gamble.

    However, today I ****ed up. I've been investing a lot in European markets lately such as FTSE 100, DAX and Austria 30 because they've all been doing quite well in the wake of the European referendum. I made quite a bit of money this money after having bought Sterling moments after Leadsom quit the Tory leadership race. However, I also bought Euros (EUR/AUD) with the expectation that the Euro would also increase in value, and it hasn't. It's now at it's lowest levels since June last year and I'm down more than £1,000.

    Should I try and weather the storm and risk getting a margin call, or sell and just take the blow?
    Your position sizing is too large for your capital base.

    As for whether to take the loss now or not, there is an old saying which refers to whether you are losing sleep over a position in deep loss:

    "Sell down to the sleeping point."
 
 
 
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