Of course your results will vary, the more stocks you invest in the closer to average it will be. Basically this means that whatever stocks at whatever point of time you choose to buy, you won't reliably get better results than the average index of the market. It is commonly accepted that one cannot beat the index by significant margin. Reading up on finance could also help you manage your money better in general. Stock trading is hard - there are plenty of things you need to know to be good at it (even if some people who know very little get lucky). The fact that you have this question might indicate that you need to do some reading up on finance and stock trading before you start (or continue) trading individual stocks with real money. If you decide to sell, there's of course a chance the price skyrockets right afterwards, and that won't feel great, but then neither will hanging on to a bad stock for way too long. It's generally expected that the stock market as a whole will recover, but that doesn't necessarily hold for any given stock. There's no rule that says the price of any given stock must recover.
The price of a stock could very well just keep falling, or remain fairly stable. Yes, maybe the stock will climb again (or maybe it won't), but that's independent of the money you've already lost - you could get a similar gain by taking the money out and putting it somewhere else (minus any fees).
Your subconscious may argue that you hang on to it as to not accept the loss, but that's not sound reasoning - the loss already happened, the past is behind us and nothing will bring that money back. The future value of a stock is (generally) not dependent on whether or not you bought some of that stock, so the fact that you bought some shouldn't really affect your analysis of that stock and whether you think it's a good or bad investment. Fees might make keeping it a more attractive option, but you shouldn't let it sway you too much in that direction - any significant drop in the stock price should make negligible the fee you would've paid to sell it earlier. Of course you should also take into account any applicable fees. If you absolutely wouldn't have bought it in its current state, then sell it.įor anything in between, use your best judgement to determine how the stock will behave going forward.
The company's shares fell as by more than a quarter during the week on the back of the uncertainty, eventually being moved on the Stockholm Stock Exchange's "observation list".Īnalysts have described the situation at the bank as "serious", with Per Hkansson, general counsel of the Financial Supervisory Authority calling it "serious and sensational", and urging those involved to "reflect on how the situation has reached this point".īut Nordea analyst Maths Liljedahl has also argued that, while the initial decision to close the business was a surprise, it does now mean at least that there is less uncertainty about the situation.If you would've bought it in its current state, then keep it. That rights issue, it added, will now be a larger SEK1bn fund-raising which, should it be agreed, will give HQ the option between now and the end of March next year to buy back the trading business, it said. If that wasn't enough, on Tuesday the bank about-turned and said it was scrapping the SEK559m rights issue and instead selling the trading arm to Investment AB Öresund for SEK850m "to immediately strengthen its capital base, in order to increase flexibility until a rights issue is conducted". This was followed five days later by the stepping down of president and CEO Mikael König and his replacement by Stefan Dahlbo, president of investment company Investment AB Öresund, the bank's largest shareholder. The twists and turns at Swedish financial services operation HQ Bank have kept markets and analysts on the edge of their seats - but whether, against a backdrop of both generally improving conditions locally but growing unease at the wider European situation, its woes are a one-off or the first signs of a deeper malaise remains a moot point.įirstly, on May 26 HQ announced it was closing its Fonder trading business, which employs 28 people, and launching a SEK559m rights issue to strengthen its capital base.
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