Stock market in declining, a friend also losing big money

United States
June 16, 2011 4:36am CST
Yesterday morning, a friend and a co - worker of mine showing me his big lost from the stock market. Earlier, he purchase 200 shares from such stock, with a price of $80 per share. Through some small up and down, each share gone up to $130 or more, and he cash out 100 shares, and later on, he purchase another 200 shares. Until sometime before yesterday, the stock price for each share dropped down to $7.00 per share. That is a huge loss. He definitely lost a lot of money from it, and other stock he possesses. Although I am not a stock player, from the 401k status, I experienced the unstable U.S. economy. Due to many news, I guess investors lost confidence on this market as a whole.
5 responses
msdivkar
@msdivkar (23359)
• India
16 Jun 11
Hi kingparker, My sympathies to your friend who has lost such a big amount in stock market. I can understand his feelings as I too have lost a big way in stock market in India. The stock markets world over are in declining mode due to uncertain and bleak prospects for the world economy. I have been purchasing a share from Rs. 40/share which is presently being quoted at Rs.8/ share. I hold 5000 of them and my average rate is above Rs.20. You can understand the loss I am suffering due to this. Every share on the stock market makes its high and low on regular basis. The share which goes up comes down and vice versa. One has to be patient dealing in the stock market. My advice to your friend would be if the stock he is holding is of profit making company then he should buy some more and hold on to it until it reaches the profitable limit. He should not book losses at this stage.
divitiae
@divitiae (193)
•
16 Jun 11
Looking at the size of that drop I would say cash flow is more relivant than profits, it looks like that ones priced to go under but I agree US in general looks like a buying opp
Stephannie
@stephcjh (38473)
• United States
18 Jun 11
Yeah. the economy is horrible right now. I do not know much about investing either but even if I did, I would not trust the government anymore with my money.
divitiae
@divitiae (193)
•
16 Jun 11
My biggest loss is LLOY (a uk bank) where I am down 75% but I have also had big profits which I wouldn't have got without a depressed market throwing up opportunities. Was this a big proportion of your friends wealth? Is he investing more at these prices?
DoctorDidi
@DoctorDidi (7018)
• India
17 Jun 11
Stock market is nothing but gambling. There are always ups and downs there. So you have to take it easily or have to quit it.
smilywomen
@surekharathi (14146)
• India
17 Jun 11
Yes friend share market is not easy the person should have lot of knowledge. Because I am a experience holder. I lost my 20000 rs. in Reliance share and since the market down no growing up. I want to suggest my all friends if they have no knowledge about share market they should not invest money.