Investing

When to cut loss - CHW & Teck.B

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  • Jun 28th, 2020 6:56 pm
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[OP]
Sr. Member
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Dec 28, 2010
626 posts
280 upvotes

When to cut loss - CHW & Teck.B

I have had CHW in my portfolio for quite a while. It's down 33 % and I keep my eye on any new developments but I have lost faith when looking at ChW trading volumes (and the news). My question is also about Teck.B which I bought into right before Covid-19 and as a result is down for approx the same $$$.

So my question is, if I take the loss, put some money in (I'm thinking 50% of the loss) it should take me about a year to catch up. Given the industry sectors they are in, when would you just sell and move on?
I'm looking at NKLA and FD and ETF's for compensation. I aim for a year because these stocks are in my RESP and I expect one child to go to college next year.
Do you want to meet the love of your life? Look in the mirror. | Byron Katie
11 replies
Sr. Member
Jun 28, 2018
760 posts
508 upvotes
Toronto
I guess different lines of thought here, but maybe I'll take this angle:

This plan has elements of compulsive gambling by trying to recoup (not "compensation" as there is no such thing as compensation for money lost legitimately on investments. Nobody owes anything for an investor's choices.) losses by taking losing money and putting some or all of it into speculative stocks in hopes of them to go up.

NKLA and FD can be considered speculative stocks, both seem to be trying for the ESG angle and to ride off the popularity of incumbents such as UBER, LYFT, and TSLA. FD how can it compete against Uber and Lyft, their model touts "3 added benefits" to differentiate themselves from competitors... ETFs, depends what you put it in and others may have some choices.

Up to you, just be careful. There is no guarantee what will happen with speculative stocks.

Trying to get back lost money by gambling more (chasing losses)
https://www.mayoclinic.org/diseases-con ... c-20355178

Have trouble controlling your gambling. Once you start gambling, can you walk away? Or are you compelled to gamble until you’ve spent your last dollar, upping your bets in a bid to win lost money back?
https://www.helpguide.org/articles/addi ... mbling.htm
The Distracted Investor

Dividends through quality companies 😃 Though I usually lose money with trades :facepalm:
Deal Addict
Dec 3, 2014
2021 posts
1274 upvotes
Ontario
VESTEGAARD wrote: I have had CHW in my portfolio for quite a while. It's down 33 % and I keep my eye on any new developments but I have lost faith when looking at ChW trading volumes (and the news). My question is also about Teck.B which I bought into right before Covid-19 and as a result is down for approx the same $$$.

So my question is, if I take the loss, put some money in (I'm thinking 50% of the loss) it should take me about a year to catch up. Given the industry sectors they are in, when would you just sell and move on?
I'm looking at NKLA and FD and ETF's for compensation. I aim for a year because these stocks are in my RESP and I expect one child to go to college next year.
I agree with Johnny. If you sell for a loss then just consider that loss an investment towards your financial education. Going on tilt and trying to "recoup" your losses is most likely to lead to even more losses. I think you should examine why you bought CHW in the first place and try to learn from it. I don't have any comments on the future of the company other than that I would not touch the industry with a 10 foot poll.

As for Teck.B, I would not sell here. It will benefit from rising inflation and eventually the next economic cycle. You will have a better opportunity to unload it down the road.
Member
May 2, 2019
359 posts
344 upvotes
Vancouver
VESTEGAARD wrote: I aim for a year because these stocks are in my RESP and I expect one child to go to college next year.
One year is too short to play with stocks. If you depend on that account having a certain balance in a year, there is no safe investing strategy other that cash/GICs.
Deal Fanatic
User avatar
Sep 21, 2007
5263 posts
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Winnipeg
IMO.. I wouldn't sell either.. If you were going to buy into something else, what makes you think it will go up to recover your losses? I'd sell it when you absolutely have no other options..
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Deal Addict
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May 6, 2010
2847 posts
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Markham
Are you sure you can buy US stocks in your RESP account? BMO won't let me so I'm stuck with Canadian stocks.
Deal Addict
Dec 3, 2014
2021 posts
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Ontario
automation wrote: buy Canadian major banks only if you are new :rolleyes:
Your recommendation is to only buy one type of company in a single sector? How is this good advice?
[OP]
Sr. Member
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Dec 28, 2010
626 posts
280 upvotes
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NKLA had a pretty good run up on Friday. It took care of 30% of my loss.

I sold CHW. The volume is simply not there.
Do you want to meet the love of your life? Look in the mirror. | Byron Katie
Sr. Member
Aug 16, 2015
671 posts
194 upvotes
VESTEGAARD wrote: I have had CHW in my portfolio for quite a while. It's down 33 % and I keep my eye on any new developments but I have lost faith when looking at ChW trading volumes (and the news). My question is also about Teck.B which I bought into right before Covid-19 and as a result is down for approx the same $$$.

So my question is, if I take the loss, put some money in (I'm thinking 50% of the loss) it should take me about a year to catch up. Given the industry sectors they are in, when would you just sell and move on?
I'm looking at NKLA and FD and ETF's for compensation. I aim for a year because these stocks are in my RESP and I expect one child to go to college next year.
I did the same as you on teck but managed to get out with a profit by averaging down at the lows.
Sr. Member
Aug 16, 2015
671 posts
194 upvotes
my advice is to only trade etfs going forward. trading these types of individual stocks is gambling.
[OP]
Sr. Member
User avatar
Dec 28, 2010
626 posts
280 upvotes
kilburn305 wrote: my advice is to only trade etfs going forward. trading these types of individual stocks is gambling.

Well maybe, I read the article on NKLA on Oilprice.com. Last time they wrote about FD there was a hype and I did the same thing. At confirmation over the SMA line I jumped in and did pretty well. But it was just because it was in the news. NKLA will drop down to $48 or so. But that my friend is for another time.
Do you want to meet the love of your life? Look in the mirror. | Byron Katie

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