This week’s great lesson turn out to be my Olam trade. I entered this trade looking for an upside target of 2.97. It would seem an achievable target as my entry point at 2.69 is near where the trend lines congregate. MACD looks to be putting in a nice cross for some short term uptrend.
True enough, it ended positive for a while until it met some heavy resistance form from the October highs at 2.82. My decision then was to sit tight and observe if it will take out that resistance and reach my target of 2.97. Well it never did. The resistance proved strong and it turn back till my cut loss yesterday.
My stops are tight for this one and perhaps the regret is that i should have taken some of the profit off at 2.82 (half of it or a thrid of it) but really, my sizing for my Olam trade is pretty small at 8k so there isn’t much profit to take off.
Had i played this again, I would have done the same thing. This stock could whipsaw quite alot that had i got out once it hits resistance and turn, it could still go up and breach the resistance to hit my eventual target. To me its a bad trade.
Right when it reached 2.82, alot of folks were happy for me for making some right decision on this and Ezra. I remember my comment was quite clearly:”Wait till i sold off at a profit then congratulate me” Turns out i just cursed myself there with that statement.
Interestingly BigFatPurse got in the same trade and did the same thing as I. We can now weep together lol.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- My Dividend Experience Investing in UCITS iShares iBond Maturing in 2028. - April 23, 2024
- We Invest into Popular Funds When They Are Popular, Exactly When They Started Turning to Shxt. - April 22, 2024
- Meal Prep 2.0 – Cooking Your “Go-to” Meal that You Look Forward to Eating Everyday. - April 21, 2024