So much for a top yielder with decent fundamentals like VOD, as often portrayed by many, being a likely strong defensive stock if Brexit uncertainties mounted. Just over 168 as I write & still falling. Hindsight is easy, but recent big director selling was an obvious warning of worse to come. Until the downtrend bottoms out & we recover, even VOD dividends seem fairly scant consolation.
But notwithstanding my huge disappointment here as I hold 2 tranches of real shares & 5 leveraged long positions, so a sizeable investment overall (all posted in separate thread here), I’ll be doggedly holding on come what may. No selling at loss.
That may seem like nothing more than ill-considered bravado. Easy to knock it. But it’s how I’ve prospered with real shares over time. I’m talking years. It’s all I know when fundamentals seem totally ignored by markets due to uncontrollable macro-factors & bearish sentiment predominates. - I stick to my time-honoured trading philosophy.
Indeed, I’ve called it badly wrong before. I had to sit doggedly with stocks like MRW, EMG, et al, picking up yield, ignoring uber-bear negativity, to eventually come away with VG profits overall. My at one point truly awful positions with such stocks are recorded on respective BBs histories.
As many know, summer months typically see less activity from bigger investment funds. Many pros stay away until September. Hence the old adage, “Sell in May & go away”. Much lower volumes seen for most stocks. So it doesn’t take huge selling to see SPs continue falling. FWIW, VOD’s current daily average is over 65m. Recent volumes since losing 175+ support here are well below average.
So when in a mess, I fall back on what’s worked for me over time, accepting that things may get even worse before they improve substantially. Which they will do over time, especially after Brexit uncertainties are no longer weighing down on certain sectors in UK markets.
This game, for all the potential rewards when things go our way, is never easy. - JD just reflecting on things from a longer-term perspective. - GLA.