Here is a chart of Downer EDI (Dow)
If you bounced into this on the breakout from congestion well done, you got a nice trade and then it all went pear shaped. DOW have apparently launched a bid for Spotless which I mentioned last week. This bid entails a capital raising whereby for every 5 existing DOW shares you own you get another 2 at $5.95. This brings the true adjusted price to $7.01. Now as sometimes happens things dont always go as planned. The market is a giant voting machine and in this instance it has decided that the takeover of Spotless has knobs on it but that is not the point. The point is that I have heard that people who have been recommend DOW have been moaning and whinging that it has gone down.
Well, here is a news flash for all of you who take a trip to Brown Gouge to get your pants cleaned every time things dont go perfectly…..SUCK IT UP. The market is not perfect, it is an odd, organic, sometimes self correcting, maddeningly chaotic system that in no way has to conform to your belief structure. This sort of event will happen at least once in your trading career and if you cannot handle that without blaming everyone else in sight then this business is not for you. So step aside and leave it to the grown ups.