The Chinese MMORPG group got destroyed over the past couple of days after the government changed some rules so that gamers could no longer buy real world goods with in-game currency. My position on (PWRD), which was looking extremely promising, ended up at an 8% loss (the maximum I'll accept).
I started out the year well, and now I'm in quicksand. I've been here before. I'm pressing, struggling, and the harder I struggle the deeper I sink (more money I lose). PWRD was unfortunate because it was more a case of bad timing/unforeseen news than an issue with stock. The situation changed dramatically a couple of days after I got into the stock.
Nonetheless, this is a danger zone and I need to be very careful from here on out. I'm in two good stocks, (ARST) and (GMCR), and I'm watching (STEC) for the formation of a high tight flag pattern. Other than these stocks, I need to exercise caution and patience more than anything else right now. The losers are eating the winners alive.
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El Capital / Capital Basica de bolsillo / Pocket Baisc Spanish Edition Karl
Marx 9788446012221 Books leer SXB
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El Capital / Capital Basica de bolsillo / Pocket Baisc Spanish Edition Karl
Marx 9788446012221 Books libro electronico
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5 years ago
4 comments:
Geoff,
I've been wanting to comment on your picks the last several weeks but haven't been able to.
I was actually commenting on your SNDA purchase after earnings and then cancelled it. Thinking it is not my business to give anybody advice.
I'm not trying to kick you while you are down but you have a great set of rules that keep you out of trouble in the markets. I wish I had the discipline to follow my own. Having said that, your rules won't work unless you follow them.
Some of the recent buys you have made haven't gone your way. You took a chance and sometimes it pays off...like FUQI...and sometimes it doesn't...like SNDA.
Having several winners in a row gives you an awesome confidence boost. It can be great but it can also go against you.
You start thinking that any stock you pick will make you money.
Been there.
I'm down in my own account for the year mainly because I started trading the leaders that had broken out already and had offered another opportunity with a 10wk pullback.
I was starting full positions on these and with several of them not going my way, it erased the small gains I had.
Like Eddie mentioned in the forums, pullbacks are intended to add on to existing positions. I knew that too but once you miss out on a good stock, you always look for an opportunity to get in.
I'm currently trying to claw my way back to a profit this year. My IRA account is up still since opening it but my brokerage account is still down several years in a row.
I have learned many things a long the way and trully feel that I can make this work.
Anyway, keep your head up and good luck with your existing positions.
los,
I always welcome your feedback, and never take it as 'kicking me.' You are very constructive and supportive - thanks.
There is no question that my main problem is discipline, as you say 'following my own rules.'
I struggle with seeing 'the ideal setup' and not being able to wait on it. As you identified, this worked out for me on FUQI - but burned me several other times. The buy rules are there to keep the odds in my favor, some stocks will defy the rules but they'll usually give another chance for entry.
Having said that, I think I'm actually more convinced now that buying off the moving averages is a sound strategy - I just think I need to work on how I do this. For a strong stock like GMCR, this gives a very good entry - same was true for ARST.
Thanks so much for giving me some new perspective and more to think about!
You played ARST beautifully by taking your 20% gain. You then monitored the stock and saw it come down to the 50dma on low volume. You bought it back on the first sign of strength (price movement with volume).
When I read what you had done, I thought, "Man, I should've been looking at this stock."
That was a great play, you got in close to the 50dma so your positioning was ideal. Once it gets too far up from the 50dma, then you run the risk of getting shaken out if the stock comes down again before making new highs.
Thanks for sharing your experience.
Thanks again for sharing your experience.
I agree that ARST is the model for my future success.
Thanks to your comments, I plan to spend my free time over the long weekend ruthlessly reviewing this year's trades. What's encouraging is that I actually can do so now. In the past I was so bad that it was a waste of time to review my trades, I was all over the board. This year I've laid a foundation to build on - and I intend to do that.
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