Skip to main content

2005 June: La Manga: Exit decisions postponed and position increased. Amazon tanking did not mean I had to stay away forever

Here I am in La Manga Spain in June 2005. I bought $16000 of AMZN at 38 in February 2005 and sold them now in June 2005 at 35 at 10% loss which seems like a good move at the time but over next six months they went up 20%. And two years later had gone up 100%.  And 13 years later had gone up 5000% meaning my investment would have been become 840,000 or  63,000 a year profit

Jesus now with all this cash, I don´t know whether to do nothing tomorrow on the stock market or go all in. I want to bet on NTES and CTSH but I am scared after seeing Amazon tank 20% last week after weak results. What if that happens to NTES or CTSH if I bet 40,000. I will be down at least eight thousand dollars or sixteen thousand if I use leverage. If I don´t bet, I will probably miss my last opportunity for a a big profit this quarter. Should I wait for another three months or gamble. If I am wrong I will wait a month and then get out like I should have done with EXM which shot through the roof when it hit my stop loss cover a week after buying it. 

“Anyone who lives within their means suffers from a lack of imagination.”

Oh if only I could cash in the profits from one good bet then I could justify visiting Yaya and renting a place in Caracas for the next few months. I could also think about Australia next year for the winter or Thailand or Venezuela every year after that for the winter.

Lesson or rule learned:

a. Markets may move south on a good stock you should hold on to or add to.

 b. A bad quarter for markets may move south a stock you believe should be held long term because management are still on the right track to becoming a monopoly.

Positive Options:
1. Add 30% to your position when your long favoured stock loses 20% after a bad quarter.
2. Convert some paper profit to real when markets are good. Pre earnings announcement, sell all your holding in your favoured long stock. And buy back with 30% of bankroll at a 20% discount on news of a bad quarter.

Comments

Post a Comment

Popular posts from this blog

2015 Oct to Jan 2016 then to July 2017 Covering big movie short was good when falsified. Trading big tween lines and shorting is very costly over 18m.

Why was I not more positive and did not bet on growth and inflated stocks spiked by easy cheap credit and devalued currencies? Should I change and trade QQQS QQQ between the M200 lines or not that is the question In October 2015........... I betted on QQQS,  a triple ETF short on the Nasdaq and two months later I was on holidays waiting for my Haitian lover to arrive at my place in Santo Domingo, and I got really scared I was on the wrong side of the bet. From the balcony I pressed the button to sell all and save myself from an embarassing jump to the upside in the Nasdaq. One week later it started to severly drop not rise, it dropped and dropped and dropped and I did nothing even though I was a lover of shorting it. I would have gained thirty thousand in a month if I had not given into my fear of being stabbed like a knife in the back by long black swan upside swinging. But when it reached below the low end of the 200 moving average, my fear came through, and it rose sharp...
Post a Comment
Read more

2005 May - 10% cover exit decision costs me to miss 12000 profit in one day. Was time to stick long aikido move

I am afraid I am going to be down thousands by the end of today. But still, I have bought 1500 shares in NTES a Chinese net stock. But if Sina's results from yesterday were bad then I am at risk of losing loads. It is the risk I have chosen to take today because I know the direction of the indices for the next two years and I have bought on a six week correction. Fingers crossed you crazy gambling bastard. This is NTES. Sina nose dives on news that their revenue will be cut in the future because of the Chinese government banning all text messages to mobile phones. But they had record forth quarter profit. Despite this they loss thirty per cent in the morning to recover being down only fifteen per cent at the end of the day. My shares in NITE dived too but recovered to where I bought them at. Tomorrow I will sell them if they do not get off to a hot start. I sold my NITE. Just in time because by the end of the day they were down five per cent.  I am gutted my favorite internati...
Post a Comment
Read more

2017 June - Help Gary avoid any super scratching any itch today. Help avoid betting from a FOMO panic, super superiority belief, or FOBABLIA Exit/Entry/Reverse super scratch bitch itch!

"The real life you yearn for and will achieve, over the next 50 years, should be only a result of just 12 important key thoughtful investment decisions / actions / tantrums in each of your most important life projects. If you stick to only doing/making only 12 big ones in each project over the next 50 years, it  will be an even greater/richer life for you ahead."  To make each of the 12 key investment decisions count over 50 year,  every 3 months,  memorise and follow your good losing and winning process steps and call to actions" What is the true "expected utility" of today's super itchiness flare up to suddenly bet or eat unhealthy, that Gary seems to want to act on now?  If a bet, is it more of a 3 month like bet out of  curiosity  rather than a cigar butt one that should result in a probable 18m utility likely gain?  If the former, "Totally Avoid Scratching" that FOMO superior belief flare up and itchy desire/hunger to listen to ...
Post a Comment
Read more