I don't know if you are interested in this kind of thing, but I am talking about stop loss orders.
I noticed time after time the market would dip down to my price , scoop up my stock and immediately head up again!
My stop loss always miraculously found the bottom, although I went to trouble to put them below an appropriate resistance point.
It was a guaranteed way to lose money.
I later found an explanation which I quote below;-
" Another problem with a stop loss order is that when you enter it into the computer, the order is transparent. A game that some market-makers played (these days, it will be computer algorithms) is “run the stops,” when the stock is forced low enough to trigger a large cluster of stop loss orders (usually at round numbers or well-known support and resistance levels). After the stock is sold at a popular stop loss price, the stock reverses direction and rallies."
Ah ha! I will desist from this technique.
Uncanny the way analysts guide you to huge loss making propositions. My biggest fiascos lately have been highly recommended by the likes of Zacks and UBS. In future I am giving their opinions no weight whatsoever. Why couldn't I have had a career where you make so much money by just being consistently wrong? An engineer wouldn't last long doing that.
I've watched quite a few of my stocks do this. Once the div gets this high and still losing support the next step is div cut and then the stock flounders on the bottom for years or the company is bust. A few of my latest triumphs, ORIG, DHT SDRL ESV NE. yet were still getting some buy ratings by analysts. I am too old for this kind of #$%$ shoot. I blame everyone else but me - they are driving savers over a cliff as they struggle for income.
Thats what I find. If you calculate your stop carefully,it will find a bottom with uncanny accuracy and a bounce will follow.
I'm not an accountant but to me they have horrendous debt and are losing money by any measure.
I do own NMM and have some concerns about that too.
DHT is viewed quite favourably by analysts including Mine -UBS. And the yield, while good, is not red-flag dangerous. Debt is not unusual. So why has it been down every day since I bought it at 8.7?
Ocean Rig UDW Inc. ORIG
Based in Nicosia, Cyprus, Ocean Rig is an international offshore drilling contractor that operates ultra-deepwater (UDW) drilling rigs. The company currently has two fifth-generation harsh environment semisubmersibles, four sixth-generation drillships, and four seventh-generation drillships. Ocean Rig is expected to take delivery of three additional newbuild drillships in the coming years.
With a market capitalization of $757.8 million, the international offshore drilling contractor offers a promising dividend yield of about 16.07%. Moreover, the stock, which also sports a Zacks Rank #1, has a strong earnings history that is expected to continue. Additionally, the stock has lost almost half of its value YTD presenting ample opportunities for an upsurge.
I rest my case
I missed the bus , caught my thumb in the mangle , stepped on a banana. #$%$ on my chips , blotted my copybook and stepped on a landmine.
The litmus test doesn't look good and instead of heading north, my prospects are surprising to the downside , going down the tubes and heading into negative territory. I need to start thinking out of the box.
Out go all drillers.
I've made plenty of mistakes chasing dividends and analysts never help.
I blame "them" ! They forced me into risk, seeking an income in my dotage.
With most saying it will be a couple of years at least before things start to pick up, I think I will chicken out of my last driller.I wish I had put a stop in or acted much sooner.
Me too exactly. When I bought, there was unanimous approval for this stock from the usual suspects. In fact I have ridden several companies into BK which never had a sell rating from anybody. They say do your own homework but why? -how am I going to do it better than a roomful of highly paid full time experts connected to the world by mega computers?
Other Navios entities are doing better right now. I am taking a look. There is also a preferred yielding 10+ and with a long time to call.
Well put. You need a sense of humour to play this game. The only thing I've done right ( as a retiree ) is to stick to the conventional quota of fixed interest which looks like will save my #$%$.
I can't help thinking this valuation means someone out there knows something. I have been caught before like this and then - bam - the div is suspended and the stock becomes close to worthless and stays there indefinitely. I got out of sdrl, esv and ne in a more timely fashion and now I think it's goodbye orig. Same with a bunch of shippers with .high dividends. There are some high yielding preferreds on some of these companies which might make more sense if you think they will survive.
Yes - that move by management makes me uneasy, and today another big leg down. Other than the very high debt load though the stats look OK. I now need this to double to get back to even.