Today, f*ckin’ Wirecard AG shares continued sliding towards 0 Euro. And at some point even reached the lowest point of just below 20 Euro. Wow. 😟
On the one hand I thought: “Oh shit, Frau Schmidt“, there goes my dough, melting away right before my eyes; on the other hand: “Yippeeee!”. Because that was THE chance. My chance! Ehm. Sorry, that was the chance for the brave ones. Let me explain:
By purchasing additional shares, one can actually bring down the average cost per share, which means that in relative terms, the loss would be not -70% but only e.g. -30%. Of course, in absolute values, you’re potentially just getting deeper in the problem by buying more of the volatile stock.
Initially I had a total of 10 shares, which I bought for 930 euro (93 euro per share). I could have sold at 109 euro per share two days ago, but as I wrote yesterday – I got greedy. Ok – it’s too late now, yesterday ain’t coming around anymore anyway…
So I was in with 930 euros. Now, imagine this: I could have bought additional 100 shares today at 20 euro per share and ended up with a total of 110 Wirecard AG shares (10 initial + 100 additional) with the total value of 2930 euro (930 initial + 2000 additional = 2930 euro)
That’s 2930 / 110 = 26,6 euro per share!
Since today early afternoon, shares of this company are trading for ca. 29 euro per share.
Now check this out:
29 euro x 110 shares = 3190 euro
3190 – 2930 = 260 euro
I could have closed this position today and kept the plus of 260 euro!
…but I did’t. Instead I bought only 20 additional shares. I know, call me chicken or loser or whatever. Uh… so, essentially, my break even is now at ca. 45 euro per share.
Boy, do I hope this company recovers in the time to come… otherwise I’m even deeper in it than I was yesterday. Keep the fingers crossed for me! 🤑