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Author Topic: Selling During the Crash
beginner
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I'm pretty new at investing. Have a few stocks from large cap to a few pennies. I haven't sold any yet, only been buying so far.
I have Lucent (LU). Bought at $0.98 a share. Now, back when it was in the ~$70 range and then it crashed to ~$10 it took a few months for this to happen. Is it possible to sell during this crash? Who would buy it? Thanks for any reply.

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FloridaSwingTrader
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I don't understand what your question is.

If you bought LU at .98...why haven't you sold yet? Always take profits.

Regardless of a stock's price movement, the MM has to match a seller with a buyer, even if he has to handle the transaction himself.

Any more questions..post again. We all have to learn.

[This message has been edited by FloridaSwingTrader (edited October 29, 2003).]


Posts: 1869 | From: Sarasota, FL, USA | Registered: Dec 2002  |  IP: Logged | Report this post to a Moderator
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FST-
What I'm trying to say is:

When lucent was up in the $60-70 range it crashed down to ~$10/share.

Now, could someone sell their shares as the price drops like that?...Let's say sell at $50/share.

I'm asking this because my thoughts is that in order to sell, someone has to buy, correct?? Now, who would buy my shares at $50/share if the stock is diving into the ground like it did?

Hope that makes more sense. I'm holding LU because the news is all good, and it keeps going up. I heard it may go up to $10 in a year or so. Its at $3.20 now!


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FloridaSwingTrader
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Regardless if a stock is tanking or not, there are always buyers..even if the MM has to buy them.


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beginner
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thanks.
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quote:
Originally posted by FloridaSwingTrader:
Regardless if a stock is tanking or not, there are always buyers..even if the MM has to buy them.


what about OTC and PK stock. does the MM has to buy them?


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alexschmidt99
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no. In pinksheets and otc the MM's don't have to buy your shares.
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VNGNTN1
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Also you should never let it slide like that.
USE a trailing Stop:
PRICE S&Pmove(07%) LUmove2.88* STOP
$70 - 4.90 - 14.11 - 55.89
$3.08 - .22 - .62 - 2.46**
*Used todays beta which is different from when stock was $70
** I would place a STOP here today

You must have purchased late into the crash at the price you are stating.This company is $1.5b in debt and has been poorly managed for some time. Will never be the bright star they once were. Iv'e been out for a long time
If your cost is .98 it closed yesterday @ 3.08 I would agree with Florida and get out
IMHO

[This message has been edited by VNGNTN1 (edited November 20, 2003).]

[This message has been edited by VNGNTN1 (edited November 20, 2003).]

[This message has been edited by VNGNTN1 (edited November 20, 2003).]


Posts: 1424 | From: Peoria, IL. USA | Registered: Oct 2003  |  IP: Logged | Report this post to a Moderator
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yup. It's been above $3 for awhile now. So I put a stop at $2.90. we'll see what happens.
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VNGNTN1
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Be careful $2.90 will probably kick it out with current beta , unless you want out. If you want to keep it follow it up from 2.46
ie: FORMULA Current Price -( Current Price x .07 x Beta x 1.02)= New Stop

[This message has been edited by VNGNTN1 (edited November 21, 2003).]


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Mehul_Sangani
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Where do you get the value of BETA? or should I say how do you calculate that.

I normally use trailing stop when I short a stock.


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VNGNTN1
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MS
"Beta" is a stocks unique movement against the S&P 500. I get mine generally from YAHOO/finance
Keystatistics/right column near top.
Since these two numbers are mathmatically related you can calculate where a stock is likely to drop to on any given day and limit in there. Look at formula above and if you are not greedy let the market run and you will catch it on the way downafter it violates its beta value.MAKE SURE TO USE A STOP. A limit or stop/limit may tick across your position. MAKE SURE YOU UNDERSTAND how these different tools work. Sorry but I don't know exactly experienced you are so may cover stuff you already know. The formula is something I made up don't know where else or who might agree/disagree. In any case it's out there for consideration.

[This message has been edited by VNGNTN1 (edited November 23, 2003).]


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breakout
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Beginner, you've been given some very good advice. LU is attractive to me too; I still think that somehow, some way, some day, management will be replaced and this company will get back to the lofty pedestal it once occupied. However I think though, I have not
invested in it; 'looked at it when it dropped
a couple of months ago and thought it might make a good short term trade, but there were
better prospects then, as there are now.
If you're planning on keeping the stock, of course you're now an investor, not a trader.
I really think that somehow, LU will pull a rabbit out of a hat, but I'm not willing to bet my money on it.
Good luck !!!

------------------
"... For the things which are seen are temporary, but the things which are
not seen are eternal." 2 Cor. 4:18


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VNGNTN1
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BREAKOUT
I don't know how old you are, but LU is a fossil
I a 60 and boy was it a great company for many years. It has not kept up, is way behind the curve and will never be a top company. Be content in the current trading range.

Posts: 1424 | From: Peoria, IL. USA | Registered: Oct 2003  |  IP: Logged | Report this post to a Moderator
   

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