Congratulations, you’ve just parted ways with a stock. Whether you’re riding the high of a profit or licking the wounds of a loss, there’s a crucial next step that’s often overlooked but paramount to your trading journey: keeping that stock on your radar. Let’s unravel why this step is more critical than remembering your wedding anniversary (just kidding, or am I?).
The Prelude: Setting the Scene
Before we dive into the heart of the matter, let’s set the stage with my recent escapade in the stock market. I took a gamble on FERG, convinced it was my ticket to early retirement.
The Leap of Faith
- Date: 9 Feb 2024
- Entry Price: A bold $199.17
- Exit Strategy: Eyeing a lofty $239.00 while keeping my guard with a stop at $187.22
Like a knight ready for battle, I was armored with optimism and a dash of naivety.
The Twist: A Bittersweet Farewell
Every story has its climax, and mine was more of a cliffhanger. On 13 Feb 2024, I bid adieu to FERG at $192.29, a farewell that was both premature and enlightening.
The Market’s Mood Swings
- Still Upbeat: Despite my exit, the market was in high spirits, seemingly unaffected by my personal drama.
- RS Rating’s Retreat: My once mighty stock’s RS rating fell faster than my motivation to exercise.
The Revelation: Wisdom in the Wake
The aftermath of a trade is often a goldmine of insights if you’re willing to dig through the debris.
The Art of Timing
- A Missed Cue: It dawned on me that my stock selection wasn’t flawed; my timing was just offbeat, like clapping along at a concert and missing every fourth beat.
The Watchlist: A Second Date
- Keeping the Flame Alive: I couldn’t shake off FERG, keeping it on my radar like an ex you’re not quite over. There was potential for a sequel in our story.
The Encore: A Curtain Call for Round Two
The stock market, much like the dating scene, is ripe with opportunities for second chances. Here’s how to make the most of them.
The Virtue of Patience
- Waiting for the Cue: Just like waiting for the perfect moment to jump into a double Dutch jump rope, timing your re-entry with a stock requires patience and precision.
The Strategy: Keeping Tabs
- Eyes Wide Open: Monitoring a stock post-sale is like keeping tabs on a rising star; you never know when it’s going to hit the big time again.
The Strategy Session: Crafting Your Comeback
Having a plan is essential, whether you’re plotting a triumphant return or navigating uncharted waters.
The Blueprint for Success
- The Reconnaissance Mission: Staying informed about your stock is like being a detective on a stakeout; the more you know, the better positioned you are to act.
The Market’s Ebb and Flow
- Riding the Wave: Understanding market trends is akin to surfing; catch the right wave, and you’re in for an exhilarating ride.
In Retrospect: Lessons from the Frontline
Reflecting on past trades is invaluable, offering a treasure trove of lessons wrapped in both triumphs and trials.
Embracing the Journey
- The Road Less Traveled: Each trading experience is a step on the path less traveled, filled with potential for growth and self-discovery.
The Gift of Hindsight
- 20/20 Vision: Looking back with clarity, the lessons learned are like glasses found after a frantic search; everything seems clearer.
details at a glance
Opening
- Underlying: FERG
- Date: 9 Feb 2024
- Underlying Price: 199.17
- Stop Loss: 187.22
- Profit Target: 239.00
- Market Outlook: Confirmed uptrend
- RS Rating: 89
- RS Line Trend: Upward (U)
- Industry Rank: 12 / 197
- Volume U/D Ratio: 1.8
- Position Risk, %: 5.97
- Position Risk to NL, %: 0.53
- Potential Profit (Position), %: 19.90
- Risk to Reward Ratio: 0.30
- Position Size, %: 8.95
- Reason for Opening Trade: 2% profit. Added to the existing position.
- Was it an Ideal Buy?: No. Volume wasn’t high enough.
- Remarks: Ballsy action. Portfolio overweight.
Closing
- Date: 13 Feb 2024
- Price (Close): 192.29
- Market Outlook: Confirmed uptrend
- RS Rating: 86
- RS Change: -3
- Remarks: “Stopped out. The market downturn appeared as expected. The position was reduced. RS rating has dropped significantly.”
Results
- What Went Well?: I bought the stock that had a good breakout from the base.
- Cause of Error / Improve: “Maybe, it is not a good idea to open positions when SPY or QQQ are extended. I should have bought the stock back when it started accelerating. The cause of error was that I didn’t place a price alert to a higher level after selling.”
- Position ROI, %: -4.44
- Position ROI (Portfolio), %: -0.40
- Position Open Time (Trading Days): 2
- Position Open Time (Days): 4
The Takeaway: It’s Not Over Till It’s Over
Selling a stock isn’t the end of the road; it’s merely a pit stop in the marathon of trading. By keeping that stock on your radar, you open the door to future possibilities, armed with more knowledge and experience than before. So, the next time you sell, remember, it’s not goodbye; it’s just “see you later.” Here’s to the stocks that got away and the second chances that await on the horizon. Happy trading, and may your watchlist be as keen as your investment strategy!
