Traders need to be mad, daft or deluded to place their religion within the Ocado (LSE: OCDO) share price. Sadly, that’s precisely what I did this yr. And sure, I plead responsible to all three of these prices.

If the definition of insanity is doing the identical factor time and again and anticipating totally different outcomes, then that applies right here. I purchased Ocado shares as a result of they’d fallen sharply, considering I is perhaps getting a cut price. However that’s what Ocado shares do. Fall. Again and again. Anticipating them to out of the blue get better simply because I owned them was mad.

Daft? I plead responsible to that too. I’d fallen for the hare-brained concept that it was okay to take a punt with a nook of my funding portfolio. Have a spot of enjoyable with cash I might afford to lose. Besides I can’t afford to lose cash and it’s no enjoyable, seeing Ocado fall and fall once more.

Can this inventory ever get better?

So I plead responsible to the primary two prices and sure, I used to be deluded too. The issue is, I nonetheless am. That’s as a result of I’m nonetheless clinging onto my stake, hoping issues will get higher.

Thus far that’s been a dropping wager for all involved, with Ocado shares down 56.78% over 12 months and 75.19% over 5 years.

I purchased them on 22 and 26 July this yr. In a single respect I’m fortunate. I’m solely down 25.11%. Lengthy-term Ocado buyers will stare upon that loss with envy. Slim comfort, I’m afraid.

At some point this troubled inventory might develop

I’ve received sufficient left to get out and make investments the proceeds in an organization that really makes a revenue, but nonetheless I cling on. Deluded, moi?

But I’ve observed that when confidence is up, and markets bounce, the Ocado price tends to bounce quicker. These days although, buyers have been in risk-off mode, and Ocado could be very a lot a risk-on proposition. That might change.

It’s had its moments. On 27 August, the board introduced two new buyer fulfilment centres (CFCs) for Australian grocer Coles had been up and operating after a two-year delay. The shares jumped for pleasure and jumped once more on 19 September after its retail division posted a optimistic set of Q3 outcomes.

I even toyed with the thought of averaging down by buying extra Ocado shares. However fortunately, I resisted.

The share price spikes didn’t endure. Traders remembered that Ocado hasn’t made a revenue in years, and received’t for a number of extra, and backed off. It’s simply not bagging sufficient new CFC contracts however has to pour money into creating the tech. May or not it’s compelled to faucet shareholders for more money by means of one other rights subject? We are able to’t rule it out.

So I received’t high up my stake. That stated, I’m not promoting both. Sod’s regulation says the second I do, the shares will go gangbusters. Or possibly that’s me being deluded once more.