Posted by: wit's end November 11, 2011
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Lotus wrote>I mean, I bought shares of DMND thinking of a short term gain. But after I bought it, the share just slipped off so sharply that I am now holding it for long term to get at least my initial investment.
According to Trading or Investing 101, this is exactly what you shouldn't be doing. You will find this in most trading/investing literature that you cannot flip-flop from being a trader to an investor and vice versa because the stock moved against you. When you got in at that specific price you might have had your reasoning. When the reason behind which you took the position is no longer valid, you should be out regardless what the stock might do next. Now, I know you are hoping the stock might back to where you bought it. And my friend HOPING is not a strategy.
still a one legged man ! :o)
my 2 cents.
I m out.
According to Trading or Investing 101, this is exactly what you shouldn't be doing. You will find this in most trading/investing literature that you cannot flip-flop from being a trader to an investor and vice versa because the stock moved against you. When you got in at that specific price you might have had your reasoning. When the reason behind which you took the position is no longer valid, you should be out regardless what the stock might do next. Now, I know you are hoping the stock might back to where you bought it. And my friend HOPING is not a strategy.
still a one legged man ! :o)
my 2 cents.
I m out.