I like to keep a few long term ideas in the mix while I frivolously commit and ditch random tickers day by day. That is because a few companies possess enough unique qualities to make me want to work for them. And I figure, if I want to work for a company, then I want to own their shares for a few years.
Sometimes this works out very painlessly, like Blu e-Cig maker LO. I have been collecting a dividend and my capital has appreciated over 20 percent. Other times I go to bed with a stock, sticking by its side through rough times and continually working with the stock as it progresses through time. This is much less enjoyable initially but the eventual fruit will taste that much sweeter.
Enter Twitter—oh sure, it has done well these last few weeks. Some traders caught the entire move and walked away handsomely paid (h/t @RaginCajun). Other traders caught a few days of the move and are happy, treating TWTR much like any other tradable ticker. I on the other hand, am still in the red on Twitter, -18.6% to be precise. Even down this much, the position is my largest and over 10% of my book. It was built when my book was much larger than it is today. It was built to be a 10% position when my book was about 20% higher than it is worth today. I will ride it for five more years if I must, or until something that actually stands a chance at disrupting this media behemoth arises. It is that big of a disruptive force. I might even buy more.
I added a third investment to my books today, one that is likely to feel odd and misunderstood for several quarters. I bought GPRO. This camera is a massive disruption. For a while, I was committed to AMBA because they supplied many of the Go Pro components, but now I can own the pure play and I will not be missing that opportunity. If silly Dr. Dre headphones matter, than Go Pro REALLY matters.
Investments aside, I closed out my F calls and bought some WB and GRNH. I am back in the pot trade and WB is looking for some sympathy action with social media on blast during FIFA WORLD CUP. GO USA, today we advanced while losing. It felt like No Child Left Behind. #merica
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Also, I was shaken out of WUBA Tuesday, I had to take the ticker off my radar by 11 am because it was making me want to kill all sorts of things, mainly my computer screen. I wanted to pore a gallon of milk on it and then cry.
Those are tough moments. Been there a lot myself lately. VJET shook me out and then ripped. ONVO same story. Just a few examples. At least I know I am not alone in my struggle with the emotions of trading.
I am confident it comes down to consistent position sizing and not taking on more positions then you are comfortable managing. This is different for everyone but for me, a short term option play should risk about 0.50% of my book, not 1% like I was swinging with FB. This position gave rise to the emotions which led to cutting WUBA, no joke.
Dude,
(as a fellow GPRO shareholder) I am telling you – this is the Best video-camera EVER. No joke. They are doing to video, what AAPL did to telephone.
Their sales will grow exponentially for years! You can be as sure of their management, as TSLA and SCTY – same kind of people.
Can they outrun the race, if a bigger meaner competitor comes in? – that I don’t know. But for now, they have no competition.
Having sad that, my stop is on close below todays low… until further instructions…
IPOs are tricky because there is no price history to base the action on. I agree they are champs right now. GO GOPRO
Pot play you say?
Yezzir