I jumped on the New York Mercantile Exchange (NMX) bandwagon, mid day Friday. Bought at $139. I thought it had to have more upside. I was wrong, very, very wrong. I bought one point off of its high, and it went right down. I sold today at $125 and change. BIG BIG OUCH.
How did I screw up? I tried to play a momentum game, after the momentum had passed. I lost $500 on the whole debacle, a good portion of the gains I made in the previous week on CSCO and AIG. Stupid, stupid, stupid. You cant loose money in your cash account, and if you don’t have total conviction – or can get in BEFORE the move – don’t jump into a stock. Total amateur move on my part.
I sold, and put some of that money into Goldman Sachs (GS).
I’m feeling rather ill right now, but hopefully because of the pain I felt, this lesson will stick in my brain. If you play a momentum move, do so BEFORE it starts to move.
My current portfolio:
AAPL
AIG
NYX
GS
SHLD
ORCL
MA
ALL of which I have great conviction towards. If I’m smart, and that’d debatable right now, I’ll let that portfolio ride until the first of the year.
No comments:
Post a Comment