Dont know what went right today !!!
Before I list down events for today lemme paint a little background. I had bought some shares of Goldcorp(NYSE:GG) when I first got into gold. That was some time last year at 20$ per share. Since new year everything has been shooting up. Specially gold had a very strong rally and our stock GG crossed 25 yesterday. I had been contemplating to get into gold even more but I was waiting for the dip. I felt stock moved 20% too fast and it will get some correction. Here is what happened in present.
1. All tech companies are not meeting expectaions of beating expectation. Tech stock falling. yhoo, amd, goog, msft everything is down.
2. market is down today after 2 weeks of strong bull. And what happens when it goes down after a bull. Ppl take profits. panic to miss out and start selling. The long awaited dip. My friend told me GG was at 23.72 this morning. I remember making a mental note sometime that I would buy GG when it comes back to 23.5. Here it was. Very close to my price. I felt as my I had predicted something :) I know this is stupid. But it happened.
3. I put a stoploss trailing order. As i was ok with current price, my trail was 10 cents. Was this rigth ? Dont know. GG started to climb and my order got executed at 23.82. and then went back to 23.65 to close for the day. All the time I was feeling that market is going down so I should have waited for a day to see how it does next day. And EOD I have bought GG at 23.82 that closed at 23.65. Now I was looking really foolish. GG could go further down next day and continue falling. Was it right to buy GG or not .. i dont know. But I am sure that 10 cents of trailing order was a stupid move.
4. In After hours GG is back up again at 24.08. I have mix feelings about it. I could buy it at 24.08 next day and be sure that it wasnt going any lower. This could be 22 in after hours for all i know.
Should you put trailing orders which are so close to current price ?
Should you try predicting a falling stock ?
Should you not wait for a stock to turn back and assert the move before you act ?
Well .. My combined cost of GG now is 23.06 and I am putting stop loss at 22.00 as I said in my earlier post. 10% below current price and 5% below my cost price. No more surprises for me :)
1. All tech companies are not meeting expectaions of beating expectation. Tech stock falling. yhoo, amd, goog, msft everything is down.
2. market is down today after 2 weeks of strong bull. And what happens when it goes down after a bull. Ppl take profits. panic to miss out and start selling. The long awaited dip. My friend told me GG was at 23.72 this morning. I remember making a mental note sometime that I would buy GG when it comes back to 23.5. Here it was. Very close to my price. I felt as my I had predicted something :) I know this is stupid. But it happened.
3. I put a stoploss trailing order. As i was ok with current price, my trail was 10 cents. Was this rigth ? Dont know. GG started to climb and my order got executed at 23.82. and then went back to 23.65 to close for the day. All the time I was feeling that market is going down so I should have waited for a day to see how it does next day. And EOD I have bought GG at 23.82 that closed at 23.65. Now I was looking really foolish. GG could go further down next day and continue falling. Was it right to buy GG or not .. i dont know. But I am sure that 10 cents of trailing order was a stupid move.
4. In After hours GG is back up again at 24.08. I have mix feelings about it. I could buy it at 24.08 next day and be sure that it wasnt going any lower. This could be 22 in after hours for all i know.
Should you put trailing orders which are so close to current price ?
Should you try predicting a falling stock ?
Should you not wait for a stock to turn back and assert the move before you act ?
Well .. My combined cost of GG now is 23.06 and I am putting stop loss at 22.00 as I said in my earlier post. 10% below current price and 5% below my cost price. No more surprises for me :)
posted by Vivek Garg at 8:44 PM
0 Comments:
Post a Comment
<< Home