Friday, March 25, 2011

12 000 Dollar Mistake

Hey there

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.

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.


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.

Thanks for reading, please leave comments by clicking on the comment button below or send me an email by clicking on the contact button at the right side of the screen. Also I had just set up a facebook page and twitter page. So if you like what you’ve been reading so far, please do like my page. Thank you!


  1. I sho sho wanna learn from u and learn bout stock
    where should i start?

    Er jie here :)

  2. so i'd like to share my experience where i didn't follow my stop loss and the share price fell from $1.80 to $0.40 and hasn't recovered since 2008. If I had 10,000 shares, it would be a $14,000.

    stay true to your stop losses.

  3. Hey hey, start by liking my page on facebook and checking this blog often!! haha.

    nah joking, I think one of the best ways to start is picking up a basic book, like rich dad poor dad or secrets of a millionare investor.

    or just talking to people, or.... reading this blog ;P

  4. @ david. Ouch but yeah I agree, stop losses are there for a reason.. cut your losers and let your winners run.

  5. Hey Jeff,
    Thanks for posting your blog on the NUFC page. Totally new to trading personally, but hoping to use the Tradingplaces game as a way of learning how to do this properly. Hopefully I can learn many things from you.

    Any other tips beside picking up those basic books?

  6. Hey grimninja, thanks for your comment! remember that i'm a beginner and have lots to learn myself hehe.

    Trading places is a great competition to test out different styles and techniques to see which you prefer, which is what i'm going to do as well.

    I think probably practice, education and of course learning from our mistake or even other's mistakes. Its probably important to have a trading or investing style, adjusting it and sticking to it and i think as beginners that is especially important.

    Thanks for visiting and reading! I hope my posts were helpful, keep coming back if they are! New update coming soon!

  7. This comment has been removed by the author.

  8. Hey aki, thanks for visiting, keep coming back if you like what you read! and if you really really like what you read, tell other about this blog as well.

    I tried opening the link but i didnt work. Is the link correct?

  9. Stop loss orders often turn out to be stop profit orders, but if some type of rising price - trend following is your game then the odd stop loss that turns out to be a stop profit is a necessary evil.

  10. Yeah I definitely agree, I think one of the trend follower's goals is to preserve capital. Plus there is no way we could tell which stop loss will cut our losses or profits, as long as indicators tell us to sell, we sell at that time and try our very best not to regret that decision lol.

  11. It is a smart thought to get numerous statements from various investors. This will give you some understanding in the matter of what the "investor esteem" of your house is. Most investors will for the most part be in a similar ballpark on cost.

  12. Positive site, where did u come up with the information on this posting?I have read a few of the articles on your website now, and I really like your style. Thanks a million and please keep up the effective work. Total PIP count at the end of each week.

  13. This is really nice to read content of this blog. A is very extensive and vast knowledgeable platform has been given by this blog. I really appreciate this blog to has such kind of educational knowledge.

  14. Enthusiastic beginning is very common in every sector when anyone enters into a new world. But it is very hard to keep such enthusiasm for a long time after huddles come out from invited sources. Read this blog and know more about this topic.

  15. Your blog is very informative. Eating mindfully has been very hard for people these days. It's all because of their busy schedules, work or lack of focus on themselves. As a student I must admit that I have not been eating mindfully but because of this I will start now. It could help me enjoy my food and time alone. Eating mindfully may help me be aware of healthy food and appreciating food.
    เรียน a level ที่ไหนดี

  16. This is really nice to read content of this blog. A is very extensive and vast knowledgeable platform has been given by this blog. I really appreciate this blog to has such kind of educational knowledge.
    อินดิเคเตอร์ RSI คืออะไร

  17. Sometime few educational blogs become very helpful while getting relevant and new information related to your targeted area. As I found this blog and appreciate the information delivered to my database.

  18. I am thankful for this blog to gave me much knowledge regarding my area of work. I also want to make some addition on this platform which must be in knowledge of people who really in need. Thanks.

  19. I enjoyed reading this blog. in my opinion, everything was perfectly written there as well as few small tips are also can be taken as healthy suggestion. Descriptive informative content written in this blog is very useful.
    custom polo shirts

  20. Yes, that’s the way I always wanted to come over such a wonderful platform where I could satisfy myself regarding my issues. I found answers of all most of my check list I prepared after having a lot of confusion. Great job.
    โบรกเกอร์ XM

  21. This is really nice to read content of this blog. A is very extensive and vast knowledgeable platform has been given by this blog. I really appreciate this blog to has such kind of educational knowledge.
    หุ้น forex

  22. our enthusiasm leads you beyond the limits. When you feel yourself enthusiastic that’s the time you can cross any limit. You seek to get perfection by using the ability of work. Read such motivational article and definitely it will help you to know new facts.
    วิธีเล่น MetaTrader 4

  23. I am thankful to this blog for assisting me. I added some specified clues which are really important for me to use them in my writing skill. Really helpful stuff made by this blog.
    XM ข้อดี

  24. creativity of writer is purely impressive. It has touched to the level of expertise with his writing. Everything is up to the mark. Written perfectly and I can use such information for my coming assignment.
    ซื้อ BTC

  25. An author must have a vast knowledge of vocabulary. The dictionary of a writer must be full of new english vocabulary to make their work more attractive. Use of new words makes their work more valuable and graceful.