May 10, 2013
I was stopped out of my last 100 PERI shares at 12.95. Total profit on the trade was $187, or $159 including commissions.
I also decided to sell my last QIHU shares. I sold at 39.25. Profit on this trade was $396. Total profit on the QIHU trade was $1,097, or $1,069 including commissions.
Normally I do not sell most of the stock I purchase. I ended up selling most of my QIHU shares at much lower prices than the last 100 shares. Did I sell the first 400 shares too early? Yes. But do I regret it? No. Although the stock market is in a confirmed bull market, the price action makes me uneasy. As mentioned yesterday, I also have a lot of stock held from many years, and the QIHU position was never considered to be a core holding for me. I only purchased it because it broke out of a chart pattern. It was a trade, like PERI. I am not enamored with either company.
Let’s compare this with 3D Systems (DDD), of which I purchased shares at 29.30 on March 15. I like that this company is on the forefront of a disruptive technology. I decided to keep this one as a core holding because of its long-term potential. DDD is currently at 42, so I have a nice profit. I think this stock will try to make a run at its old highs near 47. The stock got up near 45 yesterday, but announced a stock issuance, so it is back down to 42 today. It looks like it may form a cup with handle or other chart pattern, and if it does, I will likely add to my position on a breakout into new highs.
My only regret is that I didn’t buy more DDD when it was below 30. But that is human nature and greed at work – we always regret not buying more of something that turned out to be a great buy. The reason I only bought only a small number of shares is that the stock had a big decline, and I was not sure that the 200 DMA would stop the decline. So I placed a small order. In fact, the prices overshot the 200 DMA for a couple of days before finding support there and finally heading higher.
My orders for PERI and QIHU were larger because of the full bore bull market we are in, and because they were breakouts into new highs, not buys at moving average support levels.
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