Not long ago the Fed decreased the interest rates by 50 basis points (9/18/2007). The market rallied and so did my holdings. It showed a 30% return when the markets were up by 10%. I was building castles in air. A super jumper IPO STV (China Digital TV) came out and I picked a 100 for 31.00. It closed at 28 jumped to 39 then to 50 then to 54 in the next 4 days. I grabbed 50 more at 52.00. So, as it happens with a volatile stock it tanked to 42 in minutes following BIDU's revised analyst erstimate (Phew - a mere 300k). Call it Panic selling - I fell a victim. I surrendered my $2500 loss and let it fall to a mere $500. Huh - and as it happens always the stock turned and touched 47 and off to 50 in the next days. Not to be left out again I jumped right back there - this time to recoup lossed quickly - bought a 300 @ 50. With the overall portfolio showing gains I let this guy slowly slip to 46 42 and 37 when it has closed on this Black Monday anniversary in 2007 at 39.5. I dont know what market holds in store for Monday. Analyzing back I have just made $500 in all these weeks of trading, having been unable to hold on to my gains and see them melt away.....each day. This trading is not even taking me to the millionaire club in years. Few salient points:
- Grab your gains when it is reasonable. The truth is no one went broke taking profits.
- Cut losses short. That is the only way for you to stay in the street and pursue opportunities.
Well - these are not new to anyone who has traded for some time. But these basics will come back to haunt everyone - I believe you are empathizing! Waiting on Monday....
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