I was looking through a few companies tonight and found something that really disappointed me a lot.
Take a look at these two charts, which are taken from a software called Bull Charts, check out their website. www.bullsystems.com
Chart for AUT
Chart for MML
What would you have done in this situation if you bought into these companies when they are within the Darvas boxes? As you can see, both of them dropped below the stop losses. So what would your thought process be by then?
Let me tell you my story and I'll start with AUT.
If you look at the first chart, at the start of May AUT established its 1st Darvas box with 2 more coming. I bought $3 000 worth of shares when it broke the $0.715 resistance line. Manage to get them at around $0.80, it was all looking good when the 3rd box was established. Then if you look closely there are 3 days where the prices were just a flat line. What had happened was that AUT announced a capital raising. I was away and did not remove my stop losses which at that time was set at $0.78. After a few days it dropped below that and my shares were automatically sold. I had not only made a loss of $115 including brokerage but I also missed the opportunity to participate in the capital raising. Trust me I was kicking myself and banging my head on the walls for making that mistake then. Ask my housemates if you do not believe me.
Look at what happened next.
FUCK MY LIFE.
As of 24/3/2011, the price was $2.95 even if I didn’t participate in the capital raising, I lost an opportunity to make about $8050.00
Now let us look at MML. If you just look at mid March, it established its 1st Darvas box. I bought 1190 shares at $4.18 and then when it established the 2nd box, I bought an additional 420 shares at 4.67 which brought me to a cost of 6935.60. It then started to drop and it was all sold at exactly $4.00. This gave me a loss of $535.60 including brokerage.
Look at what it is today.
$6.90 F.M.L. I lost an opportunity to make an additional $4173.40.
This brings me to a total of approximately $12 223 in lost revenue.
So yeah those are probably the biggest mistakes I’ve made so far. I guess I only actually only lost about 600 dollars but I could have made about 12 000 dollars more had I not make those mistakes.
So what do you think about my decisions, were they wise at that time? I know the one with AUT was purely my fault for not being on top of my shares when I’m away but what about the decision with MML? Even if you think I was a complete idiot for cutting my loss at that time let me know, we are all still learning after all.
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