THE FACEBOOK (Mea Culpa/A Lesson Learned)

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It was with tremendous excitement that I greeted the Option Addict to the fold here at iBC.  He planted the seeds for my delving into volume pocket analysis and I respect his work in technical analysis and options trading tremendously.  With that in mind the stocks that he was interested in, I am usually interested in.

The Facebook caught my fancy from one of his weekly watchlist videos and I decided that this would be the trade I would “follow” him on.

You can probably figure out where this is going.

Objectively, I look at the $FB chart and I see nothing that would lead me to get long the stock, even before this most unfortunate turn of events.  This was pure gambling based on the analysis of someone other than myself.

Look, I can deal with losses on trades that I initiate, but when I ignore my own analysis and ideas and follow along with someone else, I deserve to have my face punched in.  And that is exactly what happened.

The lesson, as always: come up with your own fucking ideas.  You know when to buy and, most importantly, when to sell.  I went into this trade blinded by the outstanding performance of another trader, fueled by greed and I got served.

Lesson learned.

Now I feel better.  Thanks.

-EM

21 Responses to “THE FACEBOOK (Mea Culpa/A Lesson Learned)”

  1. I had the same thing happen with another of OA’s ideas, BIDU. Have to maintain responsibility for your own trades, especially when following someone with a different style than you or who may be able/willing to get out of the trade more quickly than you.

  2. I agree. But to be fair with OA, these things happened to me following Fly, RC,,,. Yes, just punch myself. Keep learning.

  3. Sorry about that.
    In all fairness..many equities are taking a needed rest.

    I guess maybe I bought your shares, I don’t know(?)
    (building back position off 09/04/2012 scoop @ $17.69)

    Have a great extended weekend and Happy Memorial Day, EM.

  4. Very touching ..
    RIP Zach Sobiech
    “Clouds” Celebrity Music Video
    http://youtu.be/7zxXAtmmLLc

    If you get the chance watch this, also. Just Beautiful!!

    My Last Days: Meet Zach Sobiech
    http://youtu.be/9NjKgV65fpo

    • putting life in perspective, alright,..
      too bad we can’t ‘ALL’ be more like Josh.
      😉

      • oopsa there..Josh(?) umm
        (was just reading J to the B,..sorry about that dandy error)
        should read Zach

  5. Some trades are winners, some are losers.

    We are all big boys, and everyone should take responsibility for their trades, even if they followed someone else.

    All the best to everyone, we move on to the next trade…

  6. Bozo on a bus

    Different trading style and philosophy, poor risk management, cherry picking stocks from somebody else’s lists, inadequate research; yep, I’ve done everything wrong that can be done. Welcome to the club.

  7. no one ever learns their lessons sorry em.but i’ll say one thing,you have to literally attach yourself to an issue,and watch it every damn day just like a child.know when it sneeze’s,when it has a cold,and when it’s hot. i owned bidu for 5 years, and a select few others to the point where i can tell you when it’s gonna take a poop,or when it’s gonna get a happy day.and never even look at a chart.all in options.even then, if i dispensed advise i could still be wrong.if you own stocks,you will always learn that child better when studying it’s option chains even when you dont play options.the insight to the chains gives you a clearer picture of said stock,not just in the short term,of which most want, but a better long term view as well.any body can tell me hey,check this one out,and i’ll say yea ok,take a peak at it’s option chain,(if it has one) and that will tell me just how good a suggestion is,and most of time the chain will tell me if it;s really a pos or not.

    • Hey drummerboy, how did those eagles turn out? I always appreciate the extreme care they take in packaging the coins.

      • aw man beautiful.packaged wonderfully. the best thing about it,is it appears on your card statement as watches and jewelry,which i thought was cool.now i’m looking to add the bigger bars along with more eagles.kudo’s to ya for turnin me on to them…..i still cant believe the local shops are having a hard time getting anything. wish i could return the favor somehow. thanks so much.chris

  8. Option Addict

    I got this hot stock tip tonight…anyone want in?

  9. widespread panik

    Yes OA!

  10. For those interested in elizamae’s “own fucking ideas”, I’ve recorded all the trades he’s posted on twitter since he blindly followed and got smoked on the aforementioned FaceBook play. A * notes an ambiguous entry by @Eliza_Mae_iBC so I gave him the benefit of the doubt and listed the low of the given day.

    Unsurprisingly, he’s been very quiet regarding the market these past couple weeks. He did pop-in today to say “I guess I picked a bad week to stop sniffing glue…or a good week to go on vacation and go to all cash.”

    Here’s his June ’13 calls. Given that they’re all expiring OTM, anyone who followed this joker would have lost substantial money. This isn’t the kind of content that improves the House of iBankCoin.

    GE June 23 WIN
    TOL June 36 LOSS
    GLW June 15 LOSS
    JNJ June 87.5 LOSS
    TSLA 150 weekly LOSS
    ATVI June 15 LOSS
    FB June 28 LOSS
    ORCL June 34 LOSS
    CVX June 125 LOSS
    ABT June 37 LOSS
    C June 50.61 LOSS
    GILD June low51.35 LOSS*
    GNW June low10.42 WIN*
    HIG June low29.21 WIN*
    HTZ June low24.93 LOSS*
    HD June low 77.50 LOSS*

    3 wins. 13 losses.

    • Oh jeez.

      Yes, I did have some truly hideous trades in June. Though, my performance was not quite as bad as your research suggests (more like 6 wins 9 losses). Yes, I have made some very shitty calls in what was/is a tough market. Having said that, I never recall suggesting that anyone should follow my ideas…especially in regard to options trades haphazardly spewed upon Twitter without backing research.

      I hope you realize that I was joking about buying TSLA Weekly 150 calls…

      • If you trade that bad, you shouldn’t be pointing me out. I am on a totally different side of that spectrum.

        • I agree with you…I totally respect your work and have regretted writing this post numerous times since for that very reason. I simply needed to vent the day I wrote this and have come to realize that I should have kicked a few rocks around or something instead of airing my idiocy in a public forum.

          My most sincere apologies.

  11. 42 days ago..hmm..and here it sits at the exact same price.

    Please tell me you are ‘Not’ still stewing over this FB trade?
    Perhaps you’ve decided to pen a children novel, I don’t know? I wish to think the latter.

    It may be getting ready to fill that gap back up, EM, then again who really knows?
    It’s been a tough market these past 42 days,yes?

    I am positioned long and remain most patient.

    (((and)))
    ~Sincerely miss your posts!!
    ;))

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