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

Ouch! Throwing in the towel on $USU

Well, it’s a good thing I didn’t average down when it tracked down from my entry point.   I believe the talk of reverse split and the possibility of dilution next year is what causes the panic selling.

But enough is enough!  There is a real possibility that they may wipe this company clean of existing shareholders by restructuring through bankruptcy.  In that case, I get zero money back.  At least now, I’m getting 60% of the money back from my investment in $USU.

This 60% of the $USU money can gain me back x times more if I play the right high-beta stock next time.

There are winners and there are losers; unfortunately for me, I’ve to accept the loser when I see one.  Now, if $USU shoots back up in the future, I’ll have to analyze it like a brand new investment- is it worth the risk?

So far this year, I’ve two big losers ($ETRM & $USU) and one big win ($MJNA).  Basically, I’m being set back on my annual gain of 2013.  However, I still have nine months ahead of me to get back on my feet and come out swinging for the year.

Interesting enough, I don’t feel much pain or sad for this loss since I’m prepared for this eventual resolution giving the way it has been trading for awhile.    Today big drop is simply a wake-up call and I intend to heed its calling.

My 2 cents.


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