Well, I have completed my second trade ever and what a ride. Got in yesterday 3300 long at 1.54 on (once again) $FORD right in the morning, when it seemed to be going up but boy was I wrong! I followed the roller coaster ride the entire day going up and down from being in a loosing position of over 600$ and at a time of less than 50$ (but always losing).
In my head I kept hearing and screaming, GET OUT NOW! THAT IS THE RULE! GET OUT! But I ended up holding. By the end of the day I was down something arround 650$. I can't exactly say why I held but the red markets,low volume and pricecs that where somewhat holding kept me feeling positive.
Today sold 3300 $FORD at 1.69 (just before the jump to 1.99) for a clean 495$ gain! If only I had held for a while longer, however, work simply did not allow for this. I am working and trading at the same time, and sometimes, such as today, I simply could not follow that stock as I wanted and so so left as soon as I had a good gain.
Now the question remains, and I would like to ask for some opinions, in light of the fact that I held for another day (based on the facts markets where red, volume was low, and price was somewhat holding) how would you classify my decision and why:
a) Lucky fool (should have sold right away to cut losses, things could have been much worse!)
b) Stroke of genius (perfectly read and played!)
c) Risky but good play (very risky, rule is to cut losses right away, ended up being a good but somewhat lucky play!)
Any comments wil be very much apreciated.
PS: Once again would like to thank Timothy Sykes for being my mentor and insipiration whilst providing me with all the tools and skills that I beleive are essential to get results such as the ones I am seeing!
3330 shares, on how big of a account? Don't use too big amount at a time. Maybe a 10-20% max. You was too emotional in my opinion, sure it's hard not to be, it's our money it's about. Set lower/upper limits, i had a 20 cent limit downside on $FORD. Holding overnight now tho. And upside i've got 30-60 cent limit to get out on. Even tho it's gonna climb more, it's better to lock in profit. Same on downside. Always better to take a small loss than a huge risk. GJ THO, :)
Thanks for the feedback guys! I agree I was probably way too emotional. Need to get that under control. Thanks!
Although the reasons you gave for holding on was valid, this stock could have turned ugly on you. Also since you had taken quite a large position, if you felt you were right you should have downsized your position say by 1000 shares. This would have meant you could have reentered the next day( if your thesis still prevailed). Overall it worked out for your good, but lets say it was a lucky escape.
You may want to size down for a while and learn how to take a loss like a man. Don't be a bagholder, especially not with penny stocks. That is very dangerous. But hey, I am glad it worked out for you this time...nice profit!
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