WIRECARD DOWN 25%
WIRECARD -25% https://www.bloomberg.com/news/articles/2019-02-01/hedge-fund-bear-odey-hits-another-home-run-with-wirecard-wager?srnd=premium-europe
Somehow it sounds strange to me. A Financial Times report published the “news” of fraud at Wirecard and a British Hedgefunds bets on the fall of Wirecard and made a huge profit. Just remember the 1907 manipulation in the equity markets by the late J.P. Morgan, that caused the crash of the Dow Jones by 20%. However today Wirecard lost another 25% of its market capitalisation and closed at 108,50€ down by 36,20 Euros, following a report that a group of lawyers ordered by Wirecard found evidence of fraud.
The stock fall the most in more than a decade and lost overall more than a third of its value this week. Despite ongoing repeat of any wrongdoing.
Even though stops and stop limits are not always the best choice to protect a portfolio of losses, especially in times of high volatility and sudden changes in up- and down moves, one is well advised to keep them always active. In times like these, when everything is super nervous and no one really knows what is next, one should avoid any devastating surprise by a sudden crash. Therefore keep your stop positions alive – if you are stopped out don´t buy it back without understanding what have caused the correction. Think twice and take your time. Sometimes we are acting much too fast and fear to lose a possible rebound, which could be caused only by the closing of short positions
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