You lost 92% (from 40 to 3). Now, to get back you need an increase in 1,300%. I do not think it is real.
You have to move on and learn a lesson. Try to analyze your steps that pushed you to buy this stock. try to answer simple questions like:
- why exactly you bought this stock?
- who or what drag your attention to this stock?
- what do you know about this stock?
- did you analyzed this stock? did you make any fundamental research? If you used technical analysis than what indicators did you use?
- WHY THERE WERE NO STOP-LOSS SET?????
- why did you put everything into a single stock instead of investing into several?
- WHAT DO YOU KNOW ABOUT STOCK MARKET AND INVESTING???
- why did you decided to borrow and trade on margin?
- how much did you invested into learning and research???
There could be other questions - you need to analyze the past mistake in order not make them again. If you do not do it, you should not come back to the stock market.
Simple answer: No, and it depends.
Long answer: Look up the company in particular, and check its news over the last while. Also, check its yearly performance, and see how it moves in the long-run. If it seems to you that it's only a minor setback, hold onto it until it recovers.
If the company has had a series of bad news, and doesn't seem to have any chance of recovery, you should probably close your position and take what's left of it, before you lose more.
If you lost $37,000 in less than a month, chances are, some really bad news occurred, the stock tanked overnight, and people kept selling or shorting the stock up until now.
You might have learned a few lessons of the reason for the loss. Avoid that tactics. Invest only in good stock and wait for the index to come down, never invest when the rate is going up, wait for the correction. I feel you can earn the lost amount.
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The only way to "recover your loss" is to hope the share rises. Use of a discount broker (or not) is irrelevant - YOU made the decision to buy it.
You have no chance of recoverying your loss especially since you violated the basic principle of investing - never invest unless you knw what you're doing, why you're doing it, how to do it and know the rules governing what you're doing.
You never invest 100% of your investing capital in any one secruitiy.
If the price of you stock drops 8%-10% you get out of it and move on.
If you have profit in a stock, you take it and move on - you never can get hurt taking a profit.
You never borrow money to buy stock (unless you have years of investing/trading experience.
You never go into a margin account to borrow money on a loosing position.
Hopefully you have learnt a very expensive lesson, never invest/trade unless you know what you're doing and jusdging by your actions you have no idea what you're doing
You should take the time to read "Investing for Dummies" by Eric Tyson
Always diversify, so if you wanted to invest 40K then do 4 companies in different areas, 10K each. Each of those 10K purchases I would average in and do 4 buys of 2500 to get a good overall price, hopefully on down days. Thats how I would do that ....
As far as investing, you assume all risk. Obviously you made a bad investment so that money is gone. My recommendation for anyone that doesn't know stocks is to sign up for thestreet's actions alerts. You can buy and sell with professionals that way and it takes your guessing out of it. I do that and I think its been great, if its to expensive then get together with a few people and chip in on it. Thats my recommendation.
You invested all your money in one company's stock? That's a very bad idea. You should diversify your investments or invest in mutual funds. That way, if one company's stock tanks, you still have investments that are performing.
One of the first things you learn in finance class is a study that was performed with 20 stock brokers investing against one monkey, at the end of the time limit the monkey had out performed the brokers.
The other one is the best way to make a million is to start with two.
You learned a hard lesson and just like Vegas the house wins.
not unless it goes up again and you sell when you are ahead
not a good idea to get into stocks if you can't afford to lose it
using borrowed money? doubly bad
you will be able to report losses up to $3000 a year but not until the stock is determined a total loss(declining in price, from $40K to $3K is NOT a loss you can claim)
I put money into a stock that really moved up nice so I felt it would go higher. I held onto it and it kept losing nearly everyday for a month. I had $40,000 fall down to $3,000 in less than a month. I even used borrowed money which is margin which increased the loss. I feel that since I deal with a discount broker that gives no advice and just executes orders that I have no chance at recovering this loss. Is there any chance at recovering any of this loss or should I just move on and forget about it?
Stock investments can go up or down. You can lose it all, even if you had a regular broker. That's just how the market works. You can hold on to this stock and hope it recovers, or sell and cut your losses.
Keep on investing in the stock market.
