Don't pay dollar to keep 2 cents when wrong. Cut your losses quickly. Trade what you see, not what you think.
Joined Oct 26, 2011
719 Blog Posts

Today Portfolio Adjustment (04-18-2013)

Today was a sell to close only and no buying.

Market opened almost neutral.  A little tug or war here and there and then BOOM! price began to tank.

I saw $BCRX playing defensive right at the opening gate and I was going, “Wait a minute! Ain’t you supposed to gap up because of the dire news on possible human-to-human transmission?”  No, the prices was having trouble keeping up on the high $1.9x area so I figured the situation in China might actually be better.  Without further thinking, I started selling $BCRX by chunks and eventually sold down to 80% of the original position for a small losses.  As time wore on and price didn’t seem to come back up, I sold the other 20% and called this gamble a breakeven.

Maybe, just maybe, $BCRX will gap up tomorrow without me.  What?  You think like this too?  Hmm, this is  a very common follow-up thought for a lot of people who have made up their mind to cut losses.  The way I see it, if thinking like this help you to cut losses, why not?  Half of the time when prices take a dumper after we’ve sold, we secretly pat ourselves on the back to congratulate ourselves on a job well-done.  And the other half-of-the-time, we simply say, “I knew it!”  There is nothing like proving yourself “right”, eh?

$APRI began to drop off and I immediately took action to sell as well.  Following $APRI, I sold $CERS as well.  Took small losses on both.

With general market continued to head south, I decided to reduce further my $SZYM investment as well.

After raising cash to 60% level.  I called it a day and stopped watching the market.  I don’t want to short because we may have a bounce next week due to 4/5/2013 support.  And I don’t want to buy because I don’t know if the 04/05 support will hold.  This leave me with a very comfortable cash position to wait it out.  Let’s see what happen tomorrow.

I did not take a very active approach to the market or my contribution to ibankcoin this week due to my catching a flu earlier in the week; if some of you are thinking I’m running out of gas, not quite yet!

My 2 cents.

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