You are doing very well, Fabian. But to balance the story of success here is a story of failure. I thought I'd get some biotechs in early September thinking that they won't be correlated with S&P and would be supported by swine flu scare and company specific developments even if the market declines. They seemed like winners with good stories and were up multiples from March lows. I bought them on nice pullbacks, but then they got much lower. So I bought them too early. I traded them a couple of times by partially selling the spikes and buying back in - but always bought back too early because I was afraid to miss the next big move, but they went down more. In hindsight it was a sector rotation out of biotechs lasting more than a month and I bought them too high and too early. So they went down when S&P went up and went down when S&P went down. They are still stuck in consolidation patterns. I had one winner out of 8. It is up 80% in 1 month, but of course I put the least amount of money into that one as it is small and illiquid and that win did not compensate for the losses on the other 7. And I did not add to the only winner on the way up, fortunately did not sell on the way up too. But still refusing to add to it now as it seems severely overextended. I was so carried away with these crappy biotechs that I did not pay any attention to shorting the market - at least that part turned out well so far. Lesson learned. Do not fall in love with a stock, if it does not work, take the loss while it is small and move on.
I look at the charts of them now - I see consolidations on declining volume, I think that the breakout is imminent, so don't want to sell here. The right question is - would I buy them at these levels if I did not have them? Yes, if I did not have them I would buy small positions here and then add on the way up. This means I should partially sell downright away, but it is so hard to part with them even partially. I can never catch those breakouts in real time as they happen. So I sit and wait for the breakout while consolidation continues and continues and price slowly drifts downward. And I caught a couple of breakouts and partially sold into them, but then I bought back too early - why did I buy back too quickly without waiting for the stock to settle down more - got carried away with the hype. Well, enough rambling for now.
AI
