Hello Friends! Thanks so much for stopping by and visiting my blog, Stock Picks Bob's Advice! As always, please remember that I am an amateur investor, so please remember to consult with your professional investment advisers prior to making any investment decisions based on information on this website.
In order to demonstrate what a total amateur investor I really am, and I am NOT kidding, I probably should explain to you the series of really amateur mistakes I made today with my Universal Electronics Stock (UEIC). I am really getting ready to stick to my rules and stop all the short-term trades. While the rest of the market moved higher today, my own account dipped.
Earlier today, I saw that my UEIC stock was taking a nosedive for no particular reason.
Rule #1. Don't try to figure out the reason. Just respond to market action.
And I lost.
I figured since the drop was outrageous and the stock was gorgeous, I was smarter than the market and ought to buy some shares. And buy I did. I purchased an additional 800 shares of UEIC at approximately $26.95/share early on. In the face (!) of a declining stock. After all, I had the one position to 'trade' didn't I?
But the stock kept dropping. Just like trying to catch that falling knife, I started to feel the pain. And now with a really large position! So I sold 455 of my shares at around $45.50 and then sold the rest of my shares with the stock still in the $25.50 range closing out my entire position.
I haven't calculated my loss, but it was well over $1,000.
Stupid, stupid, stupid.
But at least the rest of my account was moving higher dampening out the effect of my folly.
Have I learned my lesson?
I don't know. I know I really burnt my fingers on this one. There are totally different skills between trading the short moves and investing for the long run. I am pretty darn good at the latter and a total hack at the former.
I apologize to myself and to all of you for acting so foolishly in public.
But learning to invest is a lifelong process. I have been doing this a long time and have learned a thing or two, but trading is something totally different.
If you would like to read about and learn more about 'trading' instead of investing, visit Timothy Sykes, a fellow Covestor fan and terrific trader. Stick around here to learn more about investing. Let me make a few of these dumb mistakes and maybe you won't do the same.
UNIVERSAL ELECTRONICS (UEIC) IS RATED A HOLD
down from a "buy".
If you have any comments or questions, please feel free to leave them on the blog or email me at email@example.com.