HI all, a few days ago I posted a list of the stocks that I was considering for the coming month. I want to add that the way I finalize my choices is to wait until Monday morning. If the mkt is down a fair amount I do not make a trade. Even if my stocks are somewhat positive. I also take in some feeling for the world market. If things are getting worse in the Mid-East I will either hold up on my trades or settle back for a smaller percent gain at the opening. Which of course means more cushion.
Also I hardly ever open a position with the stock falling, while I am trying to decide. Most of these points are intuitive but you can blind yourself to obvious facts without seeing or believing the writing on the wall.
When I look back 10-11 years ago and I lost roughly 1.5 million I wonder how I was blinded to the obvious. You can and I did, fall into the trap of thinking this stock has to be better.. Or this stock cannot fall any lower.
Also the worst the situation gets the more bad choices you start making. To try to recoup the losses you move the strike closer and of course in a falling market, that just magnifies the losses.
These are some of the reasons I am always stressing safety.
Enough preaching today. Just trade safe and smart and options can be a viable tool.
Jerry
9 comments:
I'm looking at TTWO for March.
Jerry why do you like WLT ? They missed by .23 on the 14th.
Nicky, TTWO might open down around 15% So check before making a move.
Gary; Well I liked WLT a lot more before Fridays drop...lol But there are some positives about it.
1. in 08--09--10 it missed its 4th qt estimates. all other qtrs it beat. So this is a slower time for them traditionally.
2 last year it made around 2.55 annual this year over 7.61
3. none of the analyst i look at recommend a sell.
4. Their coal is prized stuff for steel making and they export most to growing countries.
But all in all I will not use them if they continue to drop. The list is my starting point to come to some final choices.
Ever one that has ThinkorSwim if you missed it under the chat / seminars tab check out Fridays Wallstreet Wrap up.
Tom is and allway will be a bear but he dose make some great points about this market.
"they cut the head off the king" (AAPL) how long can the body stand?....LOL
Jerry,Watching Europe and gold this morning do you think of waiting a couple of days or will you make your moves tomorrow. To Gary's note.
Apple has its annual meeting on Wednesday and there is a push on for more transparency on a post Jobs succession plan. I might buy some extra short term puts to protect my covered call position.
jerry,just wondering how long did it take you to recoup all the loss u had during NASDAQ crash
The DJ EURO STOXX 50 is looking pretty ugly coming up on it's close - interesting to see what happens overnight & premarket.
For anyone considering or holding a position on FSLR, here's some Bloomberg news which, if accurate, could put your position SOOC. (Seriously Out Of Cushion)
"First Solar Inc. (FSLR US): The world’s largest maker of thin-film solar power may fall as much as 25 percent if Italy cuts subsidies for solar-power development after demand to participate overwhelmed its target, Barron’s reported, citing analysts’ estimates."
Kite, I will wait for a couple of days to see if it settles down. There is never a hurry. Be patient.
Doc, I have not made up all the loss. Being a little more conservative and withdrawing funds here and there has prevented me from a total comeback. But the days of pushing for every penny and not having as much fun are in my past.
Hampton, thanks for the heads up on FSLR. I like some solar stocks but just as a momentum play. I don't really have much faith in solar as we now know it.
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