On Friday of last week I took a floater on PHUN, thinking it would be “fun.” I was amused by the ticker and like a child I bought the stock for whimsical reasons. Shortly thereafter, I was in a hell-storm of losses — as the stock narrowed and plunged lower on non-existent volume. Obstinate and unwilling to take a loss in such a “fun” stock — I doubled down at $7.9, reducing my basis to $8.67.
In the pre-market this morning the stock broke higher and edged towards $11. I didn’t sell it there — because I was greedy and wanted to see if the stock could go higher. After all, why sell a 10% position up 30% before the market opened. Why — I could hold on and perhaps realize 40-100% gains. Anything could happen.
But when the market opened, the stock looked weak and I knew it was foolish of me to bargain with the Gods in the pre-market. I knew I had made a mistake. As a matter of fact, I made a sundry of errors. In the first place, I should never have bought the stock in the first place. The combination of hubris and boredom is a powerful combination.
So I sold it all — and booked a 9% gain on a double sized position. I consider myself lucky.If you enjoy the content at iBankCoin, please follow us on Twitter