Color me complacent. Here’s the SINA plan: http://ibankcoin.com/raul3/2014/04/08/doubling-down-doing-the-dirty/
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Way to execute. This strategy resonates with my own. Question: After you buy the 3 of 3, do you hold on even if it keeps going (much) lower?
I say yes, at for awhile, until there’s a bounce. Unless something changes with the solvency of the company, etc…
This is how I set myself up for my biggest win to date. Once I have a little emotional distance, and have accepted that I have some money locked up for awhile, I start selling calls and puts to bring my average price back in line.
I don’t do this with all positions but it seems good for something I want to own longer term. Buy into the pain – in thirds, looking at chart art – and then hold (and/or work the options). It seems to suit my temperament and imperfect timing.
I am curious, what do you do, R3, if it keeps going down after the three? Do you have that in the plan or is that a moment for reassessment?
I have to admit I am wrong at some point, the key is making sure I am good and wrong so I put my stop out of the way and let the market dictate to me. Take CREE for example. I have been with this stock for years with sub $40 shares. I do not want to sell it. Yet here it is, looking exactly like I would want a short setup to look. So if this short setup I see follows through I will be forced to exit.
With DDD, the trend on the weekly chart is still higher to my eye. As we progress through time that picture will change and I will behave accordingly. Else there is a wicked perfect storm of seeking alpha, absent Ben, Citron, and some new awesome and amazing better 3-d printer all at once, THIS causes a selloff of epic proportions, and I stop out into the bloody hole.
It’s always a possibility when speculating.
Thank you. Sounds good. Make and follow plan, reassess and revise plan, proceed and don’t go into the woodshed.