The volatility
continues as we work our way through this bearish market. It is in this kind of market that investors
can pull their hair out trying to figure out what to do with his or her
stocks. While I think I do a pretty good
job selling portions of my winners as they take off to lock in gains, it still
infuriates me when I sell part of a winner and it continues to go up. It also, for whatever reason, is extremely
hard for me to cut ties completely with stocks that have done well. I know for a fact nobody can pick the exact
tops and bottoms and anyone who tells you they can probably has beach front
property in Arizona
for sale.
I've been a holder of
Apple since August of 2006, so I've made some great money on this holding but
it still causes me pain on some of the trades I've done with this stock. I've sold small portions of this stock
periodically on its way up to 200 and like I said have made good money and was
okay with that for the most part. What
really bothers me is as the stock broke through the 10 day moving average, the
20 and the 50 I've contemplated selling at least half of my position but never
did. My new target to sell Apple was
placed at the 200 day moving average, which was just below 150 at the time. I told myself if it hits the 200 day moving
average dump at least half. As that
target got closer and closer as the Apple plunged, I started to come up with
new reasons why I should not sell it. I
obviously did a great job of convincing myself because I couldn't pull the
trigger as it plunged through 150.
I
was thinking this great stock can't continue to fall like this. The support will move in and I'll kick myself
for selling it. I've been to the stores
and love their products, so Apple has to go higher here shortly. Unfortunately for me it didn't move higher
and continued to tank. I finally got
frustrated enough at around the 120 level and sold ½ of my position and of
course since I did it has gone up.
I generally don't get attached to stocks
and follow my selling rules pretty well, but my love for Apple products left me
in a hypnotic trance that I couldn't break free of until it was too late. I still own it and think Apple is still a
good stock, but I should have sold portions of this a long time ago. The message I leave you with in the words of
Gordon Gecko is, "don't get emotional about stocks" because nothing good can
come of it.