$Spire Global (SPIR.US)$ Yesterday, the stock price plummeted by 50%, resulting in an overnight paper loss of $9,000 (approximately RM40,000). My automatic stop-loss Market Order could not be executed during the night session, leaving me to accept this wave of decline.
I think this is a rare practical experience, and I would like to Share my thoughts on how to respond to a sharp decline:
1. First, identify the reason for the sharp drop in stock price.
SPIR is a stock in the space sector, and I really like its business. In November last year, it signed an agreement to sell certain businesses to another company, which caused the stock price to rise. Subsequently, that company defaulted, and SPIR officially issued a lawsuit statement yesterday, leading to a correction of the price increase and a gap down.
Although this wave of news is bearish, it isn’t severe for me and does not directly affect the business model of SPIR, which I am bullish on.
2. Let's analyze the stock price after the sharp decline.
In my previous YouTube video about "gaps", it was mentioned that when stock prices experience a gap down, it indicates a Bearish market, leading the market to prefer selling off, which is often irrational.https://youtu.be/udX6jEygML8
From a technical perspective, the stock price fell sharply to around $9 last night, even lower than the price before the acquisition in November last year. For me, this price level is an overreaction to the bearish news and aligns with the irrational market reaction in gap theory. Therefore, there is no rush to cut losses; $9 is already a reasonable price in the bottom area (meaning that even if the lawsuit is unsuccessful, this company is likely still worth...).

If there is a sharp rise in the stock market, there must be a sharp decline. There is nothing easy to predict. These are all natural laws of the stock market, but from early morning until now, I have received information from many newbies. I will share some practical coping practices and mentality building:
1. Profitable holdings in hand
The reason for entering the market is the reason for entering the market. If you are initially optimistic about fundamentals as a value investment, then you only need to leave the market if the value changes; there is no need to sell tickets for short-term price fluctuations. If you don't know at all why you bought it in the first place, then you should take it right away.
II. Loss-bearing holdings
Similarly, if you initially traded because of technical purchases, then once it falls below the support level, you will have to stop losing money. You cannot deceive yourself at this time and switch to value investing; any undisciplined transaction is bound to fail.
3. Those who want to take the opportunity to get to the bottom
From a technical point of view, all countries' general market indices have weakened. For me, any increase in the short term can only be viewed as #股价的反弹 rather than #趋势的反转，这种震荡行情是很难赚大钱的，效益极低，捞底更大概率是搞到自己身心俱疲。 If someone close to you shouts “I knew it would collapse” and “I'm ready to bottom out,” you don't have to ignore it. I've seen too many of these people, and the real opportunity cost for this kind of person was the big bull market in the previous few months. When most people made a lot of money by buying whatever they wanted, they were just watching. How much money can they make when the market falls now? How long will we have to wait? The benefits can be seen in comparison; there is no need to be envious at all.
4. What you know for a long time
Regret since...

Take profit at 0.15. $EDUSPEC (0107.MY)$

Open a new position $SMETRIC (0203.MY)$