Looking at the chart, he had chance to sell it at 107.50 ish
That would limit his down side loss to $2500.
$2500 loss on $100K investment is small and if I were that nervous, I would have taken the loss and ran.
$2500, could be considered to be a cost for good education in investing and considering his knowledge, he needs one.
Not that I am an excellent investor, but if he can not take 2.5% loss without blinking an eye, then he is investing too much, especially in the stock like this one.
IF he had not sold at 107.50, then I would be worried that he MAY just ride it down in case of disappointment. Hopefully, he would not hesitate to cut the loss.
In investing, nobody made money getting in at the right time, people who made money made it by getting out at the right time. Remember that.
When you are considering buying a stock, consider WHY you are buying in. You should remember to get out of the stock the minute that reason that you jumped in becomes invalid.
For example, VMW today. Obviously your reason for buying the stock is that you felt that you will be able to make a killing on the runup of the stock going into the earnings. (valid or invalid reason that may be, that was your reason for buying it) When you are wondering whether to get out, the real question that you should ask yourself is, Is the stock running up as you have expected. If not, then you should not hesitate to make decision to get out, the question is just when. I would have gotten out right away, but would not have gotten out when it hit very low of the day if I rode it down for one reason or another, since I believe it would recover going into the afternoon since there was no real news indicating that the earning would be bad.
However, I would NOT have changed my mind about getting out sometime today, because the stock is not meeting the primary objective for getting in in the first place.
I am not saying that I would sell, because my primary objective for getting into the stock was different than your reason and that is still holding.
Good luck to all! (whether you are long or short)
PS: Let's get the good dialogs going here, as I think it is very productive for everyone.
Honestly, I was only looking for a quick 1 or 2 percent gain today. Yup. I wanted to be in at 107 but I missed the boat and it ran and I decided to chase it and I ended up (due to waiting for it to come back down) was getting in at 110.50. Meaning I was going to get out at 111.50 or around there. I'm not greedy at all. I was just going to ride the wave for the day...I had no intention of ever holding through earnings.
Kudos to Traderpro00
It was a pleasant surprise to see people actually gave sound advice rather than to kick a person when they're down.
I sold LFC at $40K loss back in 04/04. Had I had the patience of holding on to it, I would have more than qudarupled at today's price.
Hang in there Codasleuth.
your goal is to make 1% but you normally hold for a month??????
I made some bad trades in my life but watching this stock roller coaster from it;s IPO to 114 then drop to 92 in the snap of a finger then snap back up to 110 and buying at 110 trying make 1% is some of the dumbest shit I ever heard. Where were you on Monday?
You have no business trading 100k, read a book first or something for your family sake.
Normally I'm not in a position like this where I am forced to do something. Yeah, today I gambled, but normally I hold for a month or longer...sometimes I do get in and out in the same week, and a few times I have been in and out in the same day.
I don't know everything about the market, but I do research the companies I invest in and I do watch different indicators that have served me well.
Today in VMW I gambled. I know that. I also know it's one of my rules I don't break...but today I did. Not happy with myself right now.
Yeah, thanks a lot everyone. This has to be one of the nicest boards on here...not like the AAPL board...they're crazy.
I feel really stupid...I've been watching this run up for months now and just now I felt confident in the company and that the time was right for me to get in. I bided my time all too much...missed out on insane gains and now am experiencing possible losses of a decent amount.
Any and all advice is welcomed and yes, you can tell me I screwed up, but I want to learn why and what I could do to be a better investor/trader.
Really, I would like to hear everyone on this board saying the stock is going to kill the earnings and make a huge pop, but there does seem to be some opposing views here.
Does anyone know technicals really well and can give an explanation as to why whatever is going to happen today is going to happen???
Thanks again everyone.
Well if interest is any indicator, the volume is already 4.02 mln.
Ten day average volume is 4.9! OK you bought on the run up ice skating on a mountain slope. We've all done it at one point or another.
Buy the dips, and they happen every day. Look at the long term charts, and look for the largest daily drop, and buy on the downside, not the upswing. try not to get in with your max position and never get so close to only 50% equity (or whatever the margin requirements are for the issue), that any move down gets you a call!
If you are anticipating a call, then pick your upswing to get down to a position that gives you sufficient equity or get out. There should be a run up around 2:30 or 3 pm EST, and possibly a sell off within 30 minutes of the bell, I happen to believe (how much is that worth) that it will run up at the close, but if you got a coin in your pocket, then you know as much as the rest of us, except those, who know what their clients have already told them to do.
We're heading north again now, and holding steady at near the open, in spite of a market that is down 151 atm.
I wish you wisdom, luck, and lots of Valium.
GO TEAM VMWARE!!!
If you've been watching it all the way up then you would know how volatile this stock is. It has run up quite a bit in a very short amount of time. According to some others on the board, the low float combined with high demand for a company that produces revolutionary products justifies the current pps. There is no doubt lots of speculation in it as well.
I don't have any good advice to give you except not to panic and if you were to cut your losses wait for the market to bounce back later in the day. Long term VMW will do just fine but it sounds like you were in for the earnings? I've been there before buying my entire position all at once in a high flying stock and got stuck holding the bag. Next time I would plan first my entry and exit points and place a stop in. Oh, don't buy right before earnings. If you think the numbers are going to be blowout, you'd have to buy a lot earlier. Good luck!
sometimes technicals don't do anything but shit....
never play stock for earnings...people who played amazn yesteday and not chased before the market may be crying today...
wait for earnnings..chill and buy after one hour ...get to know the trader sentiment first
I won't trust technicals unless its a study market.
if we had all the answers to the market we would all be rich. Basically there is nothing you can try to do around earnings except let the MM own you. I usually try and avoid stocks around earnins but I've had this since 51 so I'm pretty comfortable but I'm not watching it drop under 100 again. I;m out if it does.
Today is largely precipitated by the financials (i.e. MER coming in with over 2 billion more in write downs than expected) and oil rising again. I think the AMZN sell off is overdone, but so was the run up for AMZN. That's hurting tech. All tech is priced for perfection right now, and some hit perfection (GOOG, AAPL).
Really, if your position is long term then you should have no worries. This is a best of the breed company in an area of technology that is set to burst at the seams. However, as a hyper growth stock that's had a great runup, it's also very volatile. So, when purchasing you need to be able to psychologically absorb the ups and downs.