Being a Minimalist Trader is NOT easy: Example #175
- Posted by chicagosean
- on March 23rd, 2011
Sean’s Shadow: So you want to be a Minimalist Trader & Investor and hold stocks forever, eh? Great! How’s that first investment working out for ya?
If you can’t laugh at yourself, then who can you laugh at?
You may recall, I recently blogged about dipping my toes into some long-term investing. I had no doubt that I’d be calling the bull market top (at least in the short term). And not-so-amazingly, I’ve been right about that so far. Strike #1.
In seeking out my first investment two weeks ago, I found a stock that had great fundamentals: Accelerating earnings growth, strong revenue, impressive return on equity, institutional sponsorship, strong relative strength. You know, all the good things you want to see in an investment candidate. So I dipped my toes in the water with a small $500 investment. Nothing big. My plan is to consistently add to winners.
At the day of my purchase, I was feeling good about it being in a slight pullback off it’s highs (yay! I’m getting a bargain). I bought it at the open for $5.53 a share. What happened next? You guessed it. It sold off all day and closed down 10% on the day.
Brush if off, Seany. You’re in this “forever,” remember? There will be days like this.
Well, if you’ve clicked on the chart above, you’ll see that stock has essentially gone down for 10 straight trading days since my purchase. Yep, I’m down 40% in this “investment.” In 10 days. Awesome.
In case any readers were thinking I might be some kind of expert or that being a Minimalist Trader is easy, I hope the above comedic tale disavows you of such silly notions.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Sean McLaughlin - Editorial, Curation, & Investor Relations Solutions at StockTwits. Also, former Member of the Chicago Board of Trade who trades his own account in Boulder, Colorado. More »
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